All field notes

Amazon · Grocery

Four hubs, forty-five sites

I owned the retail side of Amazon’s first multi-temperature grocery hubs.

  • Stage: 0 to 1
  • Inventory and planning
  • Fulfillment and operations
4 hubs
Launched, with a fifth planned
45+ sites
Relaunched, and supplied by the hubs
3 days
Taken off vendor lead times

The problem

Amazon was relaunching more than 45 of its urban fulfillment centers in under a year. Each one was a full flip: new shelving, a new assortment, a new website, and new back-end operations.

None of it worked without the product. Those sites had no way of their own to get the chilled, frozen, and shelf-stable grocery and CPG assortment they needed to open.

What I did

I was the retail-side owner for the hub network that would supply them. I built the economic models for which vendors should ship through a hub and which shouldn’t, and set up milk runs and less-than-truckload routes to bring the inbound cost down. I wrote buying logic that knew how much each building could hold, so we didn’t bury a hub in pallets.

On the relaunch itself, I worked the assortment and inventory side.

What changed

Four hubs launched, with the plan written for a fifth. They fed a buying model for more than 45 downstream sites and 60 vendors and distributors. Vendor lead times came down about three days. Inventory shrink improved 15 to 20%, and about 30% of the manual work went away once the reporting was automated.

Stuck somewhere between order and cash?

Bring the messiest part. That’s usually where I’d start anyway.

I’ll tell you plainly if I’m the wrong person for it.