What is the 1DC Network?
Amazon's One Distribution Center (1DC) program is a strategic initiative to transform the distribution network by processing high-velocity SKUs and replenishing them to fulfillment centers using a demand-driven "pull" model — a fundamental shift from the previous "push" model where inventory was routed through inbound cross-dock facilities (IXDs).
Launched in 2025, the 1DC network consists of 12 distribution centers that operate in parallel to the existing inbound network. These facilities are designed to receive bulk inventory of high-velocity SKUs directly from vendors, store that inventory, and then rapidly replenish fulfillment centers in surrounding areas as those SKUs are depleted — ensuring the right products are always in position for fast delivery.
Push vs. Pull: A Fundamental Shift
Under the traditional "push" model, vendors ship inventory to IXD facilities, which sort and transload it into truckloads bound for specific Fulfillment Centers. The FC receives inventory based on upstream forecasting and allocation — whether or not it needs it at that moment.
The 1DC "pull" model inverts this: 1DC facilities hold bulk inventory of high-velocity items and replenish FCs on demand as stock is depleted. This means FCs get exactly what they need, when they need it — reducing overstock of fast-movers and freeing up valuable FC storage capacity for a broader product selection.
Key Advantages of the 1DC Model
- Demand-driven replenishment — FCs are replenished based on actual depletion rather than upstream forecasting, reducing waste and improving in-stock rates.
- Broader FC selection — because fulfillment centers no longer need to store large quantities of high-velocity SKUs, they can broaden their available selection with a wider variety of products. The existing IXD network cannot support the bulk storage operations that make this possible.
- Optimized inbound operations — 1DC facilities primarily handle palletized inbound and case outbound operations, driving cost efficiencies through standardized handling.
- Parallel network architecture — 1DC operates alongside the existing IXD network rather than replacing it, with each network optimized for different inventory profiles (high-velocity vs. long-tail).
- Faster regional replenishment — bulk transfers from strategically located 1DC facilities to surrounding FCs enable rapid restocking without cross-country transit.
How 1DC Changes the Flow
Traditional Model (via IXDs)
to IXDs
Transload
("Push")
1DC Model (Pull Replenishment)
High-Velocity SKUs
Holds Inventory
On Demand ("Pull")
Justin Backman currently oversees physical inventory placement (slotting) across the 1DC network — ensuring products are placed in optimal locations within each building to maximize the number of SKUs that can be stored and replenished to FCs, and to achieve the fastest stow and pick cycle times in any Amazon network.
This involves strategically spreading high-demand SKUs to prevent aisle congestion while positioning them closer to outbound docks to minimize travel distance — increasing speed and decreasing cost. Given that 1DC is the first Amazon network to implement this type of inventory placement strategy at this level of scale, the role extends well beyond execution:
- Product management — collaborating with tech teams to improve the outputs of slotting tools and software, shaping how the technology evolves to support this new operational model.
- Business intelligence — building a BI dashboard suite ($5M+ projected annual savings) that provides operations teams with actionable slotting insights, enabling faster and better-informed decision-making.
- Proof-of-concept tooling — building POC tools in Excel (leveraging advanced functions and VBA) to accelerate slotting execution and reduce manual errors. These POCs are then handed off to tech teams to be productionized into the software suite, helping move slotting toward a hands-off-the-wheel, automated optimization model.
The Broader Context
The 1DC program is one piece of a sweeping logistics transformation at Amazon. The company's fulfillment infrastructure has grown to over 1,300 facilities globally, with more than $15 billion earmarked for approximately 80 new logistics facilities. The 1DC initiative complements several other converging strategies:
Other Areas of Experience
Explore other parts of Justin's Amazon career: