What is the Pan-EU Inbound Consolidation Service (PICS)?

What is Amazon PICS Program?

Amazon PICs is a service provided by Amazon for Vendors operating in the EU. It allows vendors to ship orders to a predetermined number of fulfilment centres for a fixed cost. Then Amazon steps in and distributes your products throughout their logistics network and places them in the closest centres for the end customers.

What is the added value for vendors?

PICS helps vendors operate a more straightforward supply chain with fewer delivery FCs, fewer orders each week, and less expensive transportation. PICS uses precisely designated locations per country. 

Fewer Purchase Orders: According to our experience with vendors an average vendor onboarded to PICs expects to have 50% fewer purchase orders compared to the before PICs period. 

Higher Units per Purchase Orders: The increase in units per PO can go up to 4-5X, which allowed for higher pallet fill rates and fewer pallets needed for the same volume, which creates a saving on prep costs.

Transportation Savings:  Before PICs, while vendors are shipping to multiple FCs now they are allowed to ship only 1-2 delivery centres per locale which reduce transportation costs while having high truck fill rates.

Higher confirmation rate & chargeback reduction: Streamlined PO fulfilment procedure makes chargebacks easier to prevent and higher confirmation rates will make Amazon generate more orders.

How to get enrolled and what is the pricing?

Vendors need to get in touch with their Vendor Managers to understand their rate card which gives a per-unit cost or a custom percentage rate according to their business.

What is the Super PICs program?

Super PICs enable vendors to send POs to a less number of EU countries and Amazon FCs inside the chosen countries. While PICs allow vendors to send 1-2 designated Amazon cross docks per country, Super PICs allow you to send to only one destination (mainly it is DE) then Amazon will distribute to the corresponding FCs in multiple EU Countries. For the majority of the cases, Super PICs let vendors send POs to 1 location in the UK and 1 location in DE to distribute across the EU.

What are some additional points vendors need to know?

You should be aware that the PICs agreement can be ended if the vendor does not comply with confirmation rates and carton-level information requirements. Usually, PICs costs are reviewed every 6 months and both parties are allowed the stop PICs with a 2 months notice.