PIB

 PIB reflects how efficiently a vendor manages the inbound logistics process - from creating the purchase order (PO) to delivering goods to Amazon’s fulfilment centres (FCs). A “perfect inbound” means that the shipment meets all Amazon operational requirements and is processed quickly without manual intervention or delay.

How It Works:

• Each vendor shipment is assessed on multiple compliance checkpoints:
  • On-time delivery: Shipment arrives within the expected delivery window.
  • Accurate quantity: Units shipped match the PO exactly (no shortages or overs).
  • Proper labelling and packaging: ASINs are barcoded, boxed, and palletised per Amazon standards.
  • Valid ASN (Advanced Shipment Notification): Sent correctly and on time.
  • No routing or carrier errors: Shipment follows the assigned route and carrier instructions.
• The PIB rate is calculated as the percentage of shipments meeting all criteria.Benefits for Vendors:
• Faster check-in: Perfect inbound shipments are processed quickly, leading to faster replenishment.
• Reduced chargebacks: Minimises penalties for non-compliance (label errors, shortages, etc.).
• Higher instock rates: Ensures continuous product availability.
• Improved relationship with Amazon: Strong PIB performance signals operational maturity.

Benefits for Amazon:

• Operational efficiency: Less manual handling at FCs reduces workload and costs.
• Inventory accuracy: Ensures stock is ready for customer orders faster.
• Customer experience: Minimises out-of-stock or delayed listings.

Challenges:

• Strict compliance standards - even small errors (e.g., missing labels, late ASN) can mark a shipment as imperfect.
• Multiple carrier dependencies - late or damaged deliveries can affect PIB even if vendor dispatch was timely.
• Requires cross-functional coordination between logistics, warehouse, and planning teams.

Why It Matters:
PIB is a key operational KPI tracked in Vendor Central and AVS dashboards. Amazon uses it to evaluate vendor reliability and inbound compliance. Vendors with consistently high PIB rates gain better forecasting alignment and fewer fulfilment delays.

Example:
A vendor ships 100 POs in one quarter. 93 of them meet all requirements (on time, correct quantities, accurate ASN).

\text{PIB = 93%}

This vendor is considered a high performer, with minimal inbound friction and faster replenishment cycles.

In short:
PIB (Perfect Inbound) measures the percentage of vendor shipments that arrive at Amazon fulfilment centres on time, correctly labelled, and fully compliant - ensuring smooth, delay-free receiving and inventory availability.