Less effort. Better availability. purifies processes.
This case study shows how a vendor was able to optimize its Amazon processes — with clear relief and measurable effect.
-50%
PO management time
+50k €
refunded deductions
Shortages
sustainably reduced
Starting point & goal
A leading manufacturer of sporting goods, which supplies Amazon both as a vendor and as a seller, struggled with high operational costs in PO management. A customer service employee was almost completely engaged in processing Amazon orders.
At the same time, Amazon removed inventory from the central warehouse so that other trading partners could no longer be served. No new listings were purchased, shortages amounted to a six-figure amount, and there was a lack of transparency in quantity planning.
The goal:
Streamline processes, ability to deliver
improve and reduce cost risks.
purify processes,
the ability to deliver
improve and
Reduce cost risks.
challenges
challenges
⏱️
High manual effort in PO management (1 FTE tied up)
📦
Lack of control over Amazon's deduction and quantity logic
💸
Shortages in the six-digit range
🙈
New listings went unnoticed
🔍
No transparency in quantity planning
📉
Amazon withdrew inventory without regard to other channels
The team was almost exclusively engaged in processing Amazon orders, reconciling inventories and synchronizing offers between vendor and seller — instead of actively managing, the team was permanently involved in operational issues. This situation jeopardized both profitability and ability to deliver to other customers.
Catharina Gerngross, Key Account & Operations Lead, PLEC
Our Approach
As part of Vendor SWOT analysis The processes, deductions and volume flows were analyzed and prioritized measures were developed:
⚙️
Process optimization PO management
Introduction of automated workflows to reduce manual intervention
📤
Processing shortages & deductions
Identification and escalation of shortages with recovery
📈
Introduction to quantity forecasting
Implement Amazon forecasts for better demand planning
🛠️
listing management
Root cause analysis for non-receipt of new listings and derivation of corrective measures
🚚
Immediate measures for deliverability
Adjustment of inventory management to serve Amazon supplies and other retail partners
scores
KPI
upshot
PO management time
-50% (Next Step: Target -80%)
Refunded deductions
+50,000 €
Sell-Out & Inventory Reporting
Established for transparency
Amazon Forecast
Implemented
Shortages
Instantly reduced
New listings
Are purchased regularly again
Number of shipments
Measures taken for -70%
“It was clear to us that we still had a lot of room for improvement at Amazon — but not where we needed to start. PLEC's vendor SWOT analysis has made exactly that visible.”
Managing Partner
conclusion
The analysis and implementation resulted in a noticeable relief for the team, greater predictability and a more stable supply chain. The sporting goods manufacturer not only gained control over Amazon's quantity planning, but was also able to improve profitability through cost reimbursements and reduced shortages.
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