What is AWD?
Amazon Warehousing & Distribution (AWD) is Amazon's bulk storage and distribution service, part of the broader Supply Chain by Amazon suite. It provides sellers with a low-cost upstream warehousing solution where inventory can be stored in Amazon distribution centers indefinitely, with no capacity limits or aged-inventory fees.
AWD acts as the staging layer above Amazon's fulfillment network. Rather than shipping inventory directly to individual Fulfillment Centers (FCs), sellers send bulk shipments to AWD facilities. From there, Amazon's proprietary algorithms automatically replenish FBA inventory based on demand signals, sales velocity, and optimal placement — keeping products in stock and Prime-eligible without manual intervention.
Multi-Channel Distribution (MCD)
Multi-Channel Distribution (MCD) is a capability within AWD that was initially introduced in 2023, enabling sellers to distribute products in bulk from AWD to destinations beyond Amazon's own fulfillment network — including sellers' own warehouses, third-party logistics providers (3PLs), wholesalers, distributors, and brick-and-mortar retail locations. The service has been significantly expanded since its introduction, with major product enhancements launching in late 2024 and beyond.
Justin Backman was one of the Sr. Supply Chain Managers who helped launch the initial MCD product in late 2024, when the service started with minimal capabilities. His contributions spanned the full lifecycle from product launch through multi-year roadmap development:
- Product roadmap — helped shape a multi-year roadmap for MCD product enhancements to achieve key business objectives, including enabling shipments to major big-box retailers and additional marketplaces.
- Operational process design — designed under-the-roof operational processes that enabled warehouse teams to execute on new MCD initiatives as the product expanded.
- Business Requirements Documents — drafted BRDs (alongside Product Manager peers) that unified business and operational requirements into consolidated documents for tech teams, enabling them to build new software tools or enhance existing ones.
- Tech planning & budgeting — ensured software requirements were incorporated into tech teams' Operational Plans (OP Plans) for budgeting and resource allocation, keeping tech enhancements aligned with the MCD roadmap.
- Cost modeling — created cost models that mapped expected business costs for planned enhancements, enabling more informed decision-making when choosing strategic approaches for the program.
How MCD Works
Inventory to AWD
Distribution Centers
Channel via MCD
Key Capabilities
- Single inventory pool — sellers maintain one unified stock in AWD rather than splitting inventory across channels, reducing total stock needs by an average of 20%.
- Multi-channel outbound — bulk distribution to Walmart Fulfillment Services, other marketplace providers, wholesalers, distributors, and sellers' own warehouses.
- Custom labeling and prep — MCD supports custom shipment labels, enabling distribution to channels with specific packaging requirements.
- Automated FBA replenishment — Amazon's algorithms simultaneously manage inventory replenishment to FBA fulfillment centers.
- Integrated pricing — processing fees starting at $2.13/box (integrated rate) with transportation at $1.65/cu ft.
MCD Within the Supply Chain by Amazon Ecosystem
MCD sits within the broader Supply Chain by Amazon suite alongside Amazon Global Logistics (AGL), Fulfillment by Amazon (FBA), Multi-Channel Fulfillment (MCF), and Buy with Prime. Together, these services offer sellers an end-to-end logistics solution from manufacturer to customer — and MCD specifically enables the off-Amazon distribution leg that was previously unavailable.
Other Areas of Experience
Explore other parts of Justin's Amazon career: