WIP

 On Amazon and in broader supply chain contexts, WIP is a key inventory and operational term. It tracks products or processes that are partially completed - situated between raw materials and finished goods. For Amazon vendors and sellers, WIP can apply both to manufacturing processes (supplier side) and operational projects (Amazon-side initiatives).

How It Works (in manufacturing & logistics):

• Raw materials enter production (e.g., plastic, metal, electronic components).
• Products move through stages (assembly, testing, packaging).
• Until completion, these partially finished goods are classified as WIP.
• Once finished, they are moved into “Finished Goods Inventory” and can be shipped to Amazon fulfilment centres.

How It Works (in Amazon projects):

• Amazon teams often label tasks or initiatives as WIP during weekly or monthly reviews.
• In this context, WIP = work not yet completed but actively being tracked (e.g., “Vine programme updates are still WIP”).

Benefits for Vendors:

• Visibility: Tracking WIP ensures production bottlenecks are identified early.
• Planning: Helps align manufacturing schedules with Amazon POs.
• Cash flow management: Clear distinction between raw materials, WIP, and finished goods helps in accounting and forecasting.

Benefits for Amazon:

• Reliable forecasting: Understanding vendor WIP helps anticipate delays or shortages.
• Operational efficiency: Clear WIP reporting prevents stock-outs and overstock.

Challenges:

• Inaccurate WIP tracking can cause delays in replenishment or missed PO deadlines.
• For accounting, misclassified WIP can distort cost of goods sold (COGS).
• In project management, too much “WIP” signals inefficiency or resource overload.

Why It Matters:
WIP is central to both supply chain visibility and operational execution. For Amazon vendors, monitoring WIP ensures that purchase orders are fulfilled on time, while Amazon teams use WIP to track the progress of initiatives.

Example (Manufacturing):
A vendor producing coffee machines has 5,000 units in assembly and testing. These are Work In Progress and cannot yet be shipped to Amazon’s FC.

Example (Amazon Projects):
During a Weekly Business Review (WBR), an AVS specialist notes that the new A+ content rollout is still WIP - meaning the project is underway but not yet completed.

In short:
WIP (Work In Progress) refers to partially completed products in manufacturing or tasks in progress in project management. For Amazon vendors, it’s critical for aligning production with POs and ensuring smooth supply chain operations.