SCP

The SCP framework encompasses all the inbound and outbound logistics models that Amazon offers to vendors and sellers to ensure the most efficient movement of goods.
Each programme under SCP focuses on a different aspect of the supply chain - from direct fulfilment and cross-docking to vendor-managed warehousing and consolidation.

Core SCP Models Used by Amazon Vendors:

1. Planned Replenishment (PR):
   • Amazon forecasts demand and places purchase orders (POs) on a regular cadence.
   • Vendors ship to Amazon’s Fulfilment Centres (FCs) or IXDs (Inbound Cross Docks).
2. Direct Fulfilment (DF):
   • Vendors ship directly to customers on Amazon’s behalf.
   • Used for large, bulky, or low-turnover items.
3. Vendor Flex (VF / VFlex):
   • Amazon sets up an operational area within the vendor’s warehouse.
   • Orders are fulfilled using Amazon’s systems and packaging standards.
4. Virtual Vendor Flex (VVF):
   • Similar to Vendor Flex, but the vendor’s own employees handle picking and packing, following Amazon’s process.
5. Pan-European Inbound Consolidation (PICS / SPICS):
   • Streamlines inbound freight from multiple EU vendors into central hubs before redistribution to FCs.
6. Regional Inbound Cross Dock (rIXD):
   • Regional hubs that consolidate freight and route it to multiple FCs within a defined geography.

Objectives of SCP:

• Reduce transportation costs through consolidated inbound shipments.
• Improve delivery speed and instock rates by optimising inventory placement.
• Enhance forecasting accuracy through structured replenishment data.
• Align vendor operations with Amazon’s global fulfilment strategy.

Benefits for Amazon:

• Network efficiency: Better visibility into inbound flow and capacity utilisation.
• Scalability: Supports rapid growth without new FC buildouts.
• Cost savings: Reduced handling and transportation expenses.
• Customer promise: Enables fast, reliable Prime deliveries.

Benefits for Vendors:

• Simplified operations: Clear routing guides and logistics standards.
• Faster replenishment: Reduced lead times through closer integration.
• Lower costs: Consolidated shipping reduces freight expense.
• Better collaboration: Structured engagement with Amazon’s Supply Chain (SC) and Operations teams.

Challenges:

• Eligibility requirements: Only qualified vendors with strong operational maturity can participate.
• Complex compliance: Each SCP has strict labelling, packaging, and appointment standards.
• Dependence on Amazon systems: Requires full EDI or API integration for POs, ASNs, and shipment tracking.

Why It Matters:
SCPs are the backbone of Amazon’s inbound logistics strategy - allowing Amazon to maintain its Prime delivery speeds while controlling costs.
By offering multiple fulfilment pathways, SCP gives vendors flexibility while maintaining consistent quality and efficiency across the supply chain.

Example:
A large kitchen appliance vendor participates in Vendor Flex (under SCP) and ships directly from its own warehouse in Italy.
Amazon’s systems manage the orders, ensuring fast delivery while reducing transport costs to fulfilment centres.

In short:
SCP (Supply Chain Programme) is Amazon’s framework of fulfilment and logistics models - including PR, DF, VF, and IXD - that defines how vendors integrate with Amazon’s network to optimise cost, speed, and delivery performance.