VLT

 VLT is one of the most important operational metrics in the 1P model.
 It measures how quickly a vendor can fulfil Amazon’s purchase orders and directly impacts in stock rates, delivery promises, and retail forecasting accuracy.

VLT includes several stages:

• PO processing and confirmation
• picking and packing at the vendor’s warehouse
• arranging transportation (LTL, TL, SPD, VOC, AOC)
• transit time to the Amazon FC
• appointment scheduling and check in

In many categories, Amazon expects stable and predictable lead times to ensure inventory is placed correctly across its network and available for customer orders.

Why VLT matters:

• shorter VLT improves in stock rates
• longer VLT increases risk of OOS and lost sales
• inconsistent VLT disrupts forecasting and PO planning
• directly influences Amazon’s ability to offer fast delivery (Prime, UFT)

Impact of poor VLT:

• delayed shipments
• ship window non compliance chargebacks
• reduced PO frequency
• weaker placement in key fulfilment centres
• lower Buy Box availability
• increased CRaP risk due to poor supply reliability

Benefits of strong VLT performance:

• higher PO volume and more predictable orders
• better selection placement (same day or next day FCs)
• improved relationship with Amazon retail teams
• stronger conversion and retail readiness

What vendors can optimise to improve VLT:

• accurate capacity planning
• better production scheduling
• reliable transportation partners
• faster PO acknowledgement
• use of Vendor Flex or VOC where applicable
• improved ASN accuracy

Example:
A vendor with a VLT of 5 days consistently processes POs fast and ships early within the ship window.
Amazon rewards this reliability with higher PO volumes and better FC placement.

Why It Matters:
VLT determines how efficiently a vendor can support Amazon’s supply chain.
Fast, predictable lead times drive higher availability, stronger sales, and a better customer experience.

In short:
VLT (Vendor Lead Time) is the time a vendor takes to process and deliver a purchase order to Amazon, directly influencing in stock rates, forecasting, and overall supply chain efficiency.