Amazon Supply Chain. Vendor Central PO Acknowledgement changes & Update Item Availability Status. November 2017

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1 Amazon Supply Chain Vendor Central PO Acknowledgement changes & Update Item Availability Status November 2017

2 Presenting 2 new Vendor Central features 1. Update Item Availability Status A new Vendor Central functionality that allows vendors to view and update ASIN availability (limited to 23 US GLs at the onset) 2. Updated PO acknowledgement dropdown An updated PO acknowledgement drop down that provides vendors visibility into how Amazon interprets the PO acknowledgement codes

3 Amazon s procurement process breaks inventory status into three basic categories of procurability 1. Update Item Availability Status 1 2 In Stock (including backorder) Temporarily Unavailable 3 Permanently Unavailable

4 Item Availability Management Purchase Order Purchase Order Acknowledgement Purchase Order (PO) Planning There are three ways to communicate inventory status that will influence Amazon s PO planning before an order is cut Actual PO Submission Efficiency during the PO fulfillment process is directly tied to accurate inventory availability awareness throughout the supply chain PO Acknowledgement After the PO has been received, the PO acknowledgement code and quantity you confirm impacts Amazon s next buying decision

5 How to influence Amazon s PO plan prior to the PO drop 1 In Stock 2 Temporarily Unavailable 3 Permanently Unavailable EDI Vendor Central Update Item Availability Status New! Vendor Central Contact Us Item Availability Management Purchase Order Purchase Order Acknowledgement

6 New! Item Availability Management Purchase Order Purchase Order Acknowledgement

7 Replenishment POs are executed based on the procurement status and inventory availability visibility Item Availability Management Purchase Order Purchase Order Acknowledgement

8 After the PO has been received, the ack code you choose impacts our next buying decision and our message to customers Item Availability Management Purchase Order Purchase Order Acknowledgement

9 Amazon s procurement systems boil down acknowledgment codes into three basic availability categories 2. Updated PO acknowledgement dropdown 1 2 YES, In Stock (including backorder) NO, Temporarily Unavailable 3 NO, Permanently Unavailable We want to make sure you know how we interpret these codes so we can stay in stock for our customers

10 YES Selecting a Yes status indicates you will fulfill that product within the parameters of the PO policy. Note that Amazon will auto-cancel line items that are not received before the cancellation date and a backorder status does not negate this requirement. Refer to the PO On-Time Accuracy page in Vendor Central Support Help for more details on Amazon s PO policy

11 This product can be fulfilled within the cancellation policy guidelines The specific confirmation codes that apply include: Accepted: In stock Backordered Backordered: External confirmation Backordered: Not yet available Backordered: Not yet published Backordered: To be reprinted YES Product in stock and immediately available Product will be in stock and can be delivered before PO cancellation date Product will be in stock and can be delivered before PO cancellation date per external source Product will be in stock and can be delivered before PO cancellation but is pending availability in fulfilment network Product will be in stock and can be delivered before PO cancellation but is pending initial publishing Product will be in stock and can be delivered before PO cancellation but is pending reprinting

12 NO (Temporarily Unavailable) Selecting a No (Temporarily Unavailable) status indicates you cannot fulfill that product within the parameters of the PO policy. Amazon will reorder again unless this same status is selected 5 consecutive times at least 48 hours apart, after which ordering will be suspended for 30 days.

13 You wish to skip this cycle but anticipate having a Yes status next time NO (Temporarily Unavailable) Cancelled: Does not meet minimum Cancelled: Out of stock* Cancelled: Not yet available Cancelled: Temporarily out of stock** Quantity ordered does not match the product minimum order quantity (MOQ) threshold requirements. Product will not be in stock within cancellation policy guidelines Product has not yet entered fulfilment network Product will not be in stock within the cancellation policy guidelines The specific confirmation codes that apply include: Cancelled: Invalid product information Product has incorrect information and should not be fulfilled until corrective action taken *Cancelled: Out of Stock (OS) is available to all vendors ** Cancelled: Temporarily out of stock (IR) is available only for US Advantage groups

14 NO (Permanently Unavailable) Selecting a No (Permanently Unavailable) status indicates you will not have this product available in the foreseeable future. Choosing this status two times at least 48 hours apart, Amazon will interpret this ASIN to be unavailable and suspend ordering. For status changes, you can self-manage availability by resurrecting this ASIN. To resurrect, go to Vendor Central Items Catalog and follow the ASIN availability workflow.

15 You wish to remove this product from our regular replenishment order cycle The specific confirmation codes that apply include: NO (Permanently Unavailable) Cancelled: Considering reprint Cancelled: Never published Cancelled: Not our publication Cancelled: No geographic rights Cancelled: Out of print Cancelled: Permanently out of stock Cancelled: Suspend orders Discontinued: Obsolete Product is unavailable and pending decision for reprint Product has never been published by this vendor code Product does not belong to this vendor code Product cannot be fulfilled to this geographic region Product is out of print with no plans of reprint Product is out of stock with no plans to replenish Product should not be ordered at this time. You will follow the resurrection workflow to bring this ASIN back sometime in the future. This product should never be ordered again.

16 Accepted: In stock Backordered Backordered: External confirmation Backordered: Not yet available Backordered: Not yet published Backordered: To be reprinted Cancelled: Does not meet minimum Cancelled: Out of stock Cancelled: Not yet available Cancelled: Temporarily out of stock Cancelled: Invalid product information Cancelled: Considering reprint Cancelled: Never published Cancelled: Not our publication Cancelled: No geographic rights Cancelled: Out of print Cancelled: Permanently out of stock Cancelled: Suspend orders Discontinued: Obsolete YES Product in stock and immediately available Product will be in stock and can be delivered before PO cancellation date Product will be in stock and can be delivered before PO cancellation date per external source Product will be in stock and can be delivered before PO cancellation but is pending availability in fulfilment network Product will be in stock and can be delivered before PO cancellation but is pending initial publishing Product will be in stock and can be delivered before PO cancellation but is pending reprinting NO (Temporarily Unavailable) Quantity ordered does not match the product minimum order quantity (MOQ) threshold requirements. Product will not be in stock within cancellation policy guidelines Product has not yet entered fulfilment network Product will not be in stock within the cancellation policy guidelines Product has incorrect information and should not be fulfilled until corrective action taken NO (Permanently Unavailable) Product is unavailable and pending decision for reprint Product has never been published by this vendor code Product does not belong to this vendor code Product cannot be fulfilled to this geographic region Product is out of print with no plans of reprint Product is out of stock with no plans to replenish Product should not be ordered at this time. You will follow the resurrection workflow to bring this ASIN back sometime in the future. This product should never be ordered again.

17 If only three categories, why should I discriminate between acknowledgement codes? Many vendors use these fields internally to keep track of confirmation rate variance and error reporting. We use specific acknowledgment codes for business decisions and better ASINlevel availability insight. We encourage you to continue providing the specific code that applies to your ASIN availability status.

18 We have now have two NO buckets to group status options with buying decisions vs one previously The lists shown here represent all possible acknowledgement codes. The codes displayed in your account are based on the business group of that ASIN and will not include all of those in this list.

19 In some cases, this means that your acknowledgement code list may have been reshuffled to group by procurement status The lists shown here represent all possible acknowledgement codes. The codes displayed in your account are based on the business group of that ASIN and will not include all of those in this list.

20 Below is the full reshuffle that occurred The lists shown here represent all possible acknowledgement codes. The codes displayed in your account are based on the business group of that ASIN and will not include all of those in this list.

21 FAQ 1: Does the ASIN-level inventory management feature allow for bulk uploads? With current iteration, you will be able to make bulk changes for up to 25 items at a time on the screen. The feature does not support extract download or upload (ie: excel) at this time.

22 FAQ 2: How will Amazon interpret combination of EDI signals and PO acknowledgements on Vendor Central? We will aggregate the information and honor the most recent signal, whether it is communicated through EDI or Vendor Central

23 FAQ 3: Which GL s are in-scope for ASIN-level inventory management feature? We will begin Pilot launch on Nov 16 th for select vendors in US Hardlines and Consumables product lines. After that, we plan on staggering the launch GL-by-GL for the following list. The feature will be available to all vendors for the GL s below. US Hardlines Camera Consumer Electronics Furniture Home Home Entertainment Home Improvement Kitchen Lawn and Garden Major Appliances Mobile Electronics Musical Instruments Office Products Outdoors PC Pet Products Sports Tools Toys Wireless US Consumables Baby Beauty Grocery Health and Personal Care

24 FAQ 4: Does marking an item In Stock mean that I will receive PO s for this product? Amazon makes purchase decisions that is aggregated across many inputs. Item availability is one of many inputs that we consider. Thus, while we attempt to send Purchase Orders (POs) to vendors who indicate in-stock availability, there is no guarantee of PO receipt.

25 FAQ 5: Does marking an item Temporarily Unavailable or Permanently unavailable mean that I will no longer receive PO s for this product? While we attempt to send Purchase Orders (POs) to vendors who indicate in-stock availability, we may occasionally send you POs even after indicating temporarily or permanently out of stock, particularly if there is customer demand that we would like to fulfill.

26 FAQ 6: Are there new acknowledgement codes introduced with the updated PO acknowledgement dropdown? No new acknowledgement code has been added with the updated dropdown. We aimed to differentiate acknowledgements and categorize as temporarily unavailable and permanently unavailable, and communicate implications with each choice.

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