SCD: Amazon’s new capacity management system lets sellers bid for more storage space

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SUPPLY CHAIN MANAGEMENT reports:

Maximizing productivity has become even more important for Amazon as it works to reduce billions in added costs, much of which is connected to its warehouse operations. CFO Brian Olsavsky told analysts in October that the company has been operating with “very high” inventory levels primarily connected to Prime sales events, making productivity improvements more challenging. 

“There’s a lot of extra work when you have space constraints,” Olsavsky said.

Since the new reservation feature is auction-based, the cost of additional capacity will ...