amazon

Research-based synthesized Action Plan • Current public information through September 2026

AMAZON U.S. FULFILLMENT NETWORK

REGIONALIZATION ACTION PLAN

2023–2026 operating transformation framework | Research-based synthesis of Amazon’s documented

fulfillment-network regionalization and continuing supply-chain evolution.

PLAN STATUS

Research-based synthesis

CORE MODEL

Eight-region U.S. fulfillment network

REFERENCE DATE

Current public information through Sep. 2026

1. Executive Objective

Transform Amazon’s U.S. fulfillment network from a highly interconnected national flow into

eight largely self-sufficient regional

networks

, positioning inventory closer to demand, shortening transportation paths, reducing unnecessary network touchpoints, and

preserving broad national selection while improving delivery speed and operating efficiency. Amazon’s own account describes

regionalization as a restructuring of fulfillment centers, sorting centers, delivery hubs and transportation into eight regional networks

while retaining national coverage.

2. Strategic Priorities

Priority

Execution intent

Regional network design

Operate eight geographic regions with inventory and transportation flows optimized around local demand.

Inventory positioning

Place inbound inventory where demand is expected, reducing avoidable cross-region movement.

Transportation optimization

Use routing and network-design science to shorten paths and improve vehicle utilization.

Fulfillment speed

Increase the share of orders fulfilled entirely within the customer’s region and improve delivery speed.

Continuous optimization

Refine the network with data science, forecasting, automation and evolving supply-chain services.

3. Transformation Logic

NATIONAL NETWORK

Many interdependent lanes

→

REGIONALIZATION

Eight network cells

→

LOCALIZED FLOW

Regional FC

→

delivery

→

IMPACT

Shorter paths + speed + efficiency

amazon

Research-based synthesized Action Plan • Current public information through September 2026

4. Real-World Action Program

Action

Execution requirement

Owner

Window

Measures

Define regional

boundaries

Model alternative regional configurations against speed,

transportation cost, inventory balance and inter-regional

flow.

Operations Research /

Network Design

Completed foundation

Eight-region design

Reconfigure fulfillment

flows

Shift demand and inventory toward regional FC networks

while retaining national coverage for exceptions.

Fulfillment / Transportation

Scaled from 2023

Regional fulfillment rate

Optimize transportation

routes

Use ATROPS and network optimization to select efficient

paths immediately after order placement.

Transportation / Science

Ongoing

Distance; touchpoints;

speed

Increase direct

FC-to-station moves

Exploit regional density to increase viable direct lanes and

improve vehicle fill.

Transportation Operations

Ongoing

Truck utilization; lane

count

Improve inventory

positioning

Use demand forecasting and placement systems to position

products closer to likely buyers.

Inventory Planning / Science

Ongoing

Availability; regional

sourcing

Extend supply-chain

capabilities

Continue integrating freight, storage, distribution, fulfillment

and parcel services through Amazon Supply Chain Services.

Amazon Supply Chain

Services

2026 onward

Service adoption; network

efficiency

5. Accountable Teams

Function

Role in the action plan

Operations Research & Data Science

Network modeling, region design, optimization, inventory-speed trade-offs and analytical experimentation.

Global Transportation / Network Design

Regional transportation architecture, lane design, route planning and execution.

Fulfillment & Inbound Technology

Inventory placement, fulfillment logic, forecasting and systems supporting regional flows.

Delivery Operations

Regional delivery execution, station connectivity and last-mile performance.

Amazon Supply Chain Services

Current 2026 expansion of Amazon’s logistics capabilities to freight, distribution, fulfillment and parcel services for broader

business use.

amazon

Research-based synthesized Action Plan • Current public information through September 2026

6. Timeline & Milestones

Period

Milestone

Execution significance

2020–mid 2021

Problem identification

Rapid pandemic-era volume growth exposed network complexity; Amazon developed the

regionalization concept.

2022

Modeling & network design

Extensive network-optimization analysis tested alternative region counts, flows and trade-offs.

Jan. 18, 2023

Pilot launch

Northeast and Mid-Atlantic regions pioneered the new fulfillment pattern.

Early 2023

Accelerated rollout

The remaining regions were activated faster than initially planned after early results.

2023 onward

Network maturation

Regional fulfillment, direct transportation opportunities and operational controls continued to improve.

2026

Broader supply-chain evolution

Amazon expanded Amazon Supply Chain Services and continued investing in connected freight,

distribution, fulfillment and parcel capabilities.

7. Verified Outcomes

Outcome

Evidence

Interpretation

Regional fulfillment

62%

→

76%

Amazon Science reported that the share of customer orders fulfilled entirely within the eventual regions

rose from 62% to 76% after regionalization.

Transportation distance

Shorter paths

Amazon reported delivery-speed improvements as more goods traveled shorter distances and described

improved direct FC-to-delivery-station opportunities.

Network complexity

Fewer interdependent

lanes

Amazon described a marked reduction in the number of transportation lanes requiring national

coordination.

Current supply-chain

expansion

2026

Amazon Supply Chain Services now offers freight, storage/distribution, fulfillment and parcel capabilities to

businesses beyond Amazon’s own retail channel.

amazon

Research-based synthesized Action Plan • Current public information through September 2026

8. KPI Scorecard

Category

KPI

Current evidence

Basis

Management use

Network

In-region fulfillment rate

76% reported after regionalization

Amazon Science

Track regional sourcing and exceptions.

Customer

Delivery speed

Improved following regionalization

Amazon Science

Monitor promise speed and reliability.

Transportation

Distance traveled

Shorter routes reported

Amazon Science

Track miles/order and network flow.

Transportation

Direct FC-to-station opportunity

Increased after regionalization

Amazon Science

Measure utilization and lane economics.

Inventory

Regional availability

Position inventory near expected demand

Amazon network model

Monitor in-stock and placement quality.

Network

Inter-regional movement

Minimize avoidable transfers

Regionalization model

Track exceptions and transfer cost.

Supply chain

External network adoption

ASCS open to businesses and sales channels

Amazon, 2026

Track service adoption and operational

economics.

9. Dependencies

Regional demand models

Regionalization works only when inventory placement matches local demand without unnecessarily restricting national selection.

Transportation density

Shorter regional routes become more efficient when enough volume can consolidate on viable lanes.

Inventory systems

Placement, forecasting and fulfillment logic must understand regional constraints and exceptions.

Facility network

FCs, sortation, delivery stations and transportation capacity must align to regional flows.

Technology & data

Optimization requires accurate network, demand, inventory and transportation data.

amazon

Research-based synthesized Action Plan • Current public information through September 2026

10. Risk & Mitigation Register

Risk

Exposure

Mitigation

Regional fragmentation

Medium

Preserve national fallback flows for products or demand patterns that cannot be economically

regionalized.

Inventory imbalance

High

Continuously tune placement using demand forecasting and observed regional demand.

Transportation underutilization

Medium

Use network density and direct-lane economics as scale gates.

Customer selection constraints

Medium

Retain national coverage and exception mechanisms where local inventory is insufficient.

System complexity

Medium

Centralize monitoring, standardize interfaces and use staged deployment.

Cost pressure

Medium

Measure total cost-to-serve rather than optimizing a single transportation metric.

11. Governance & Accountability

Executive leadership

Approve network design principles, capital priorities and trade-offs between speed, selection and cost.

Network science

Maintain scenario models, test changes and quantify regional flow impacts.

Operations

Execute network changes, monitor service levels and escalate deviations.

Technology

Maintain routing, inventory and fulfillment systems and release improvements safely.

Performance review

Review regional sourcing, speed, distance, utilization, cost and customer outcomes; adjust operating rules.

OPERATING PRINCIPLE

Localize what can be localized; preserve national flexibility where it creates customer or economic value;

continuously optimize the boundary between the two.

amazon

Research-based synthesized Action Plan • Current public information through September 2026

12. Action

→

Impact Framework

The regionalization model converts network design decisions into measurable customer and operational outcomes.

PRIORITY

ACTION

OWNER

MILESTONE

KPI

IMPACT

Regionalization

Operate eight largely self-sufficient

regional networks while retaining national

coverage.

Network Design

Region activation

In-region fulfillment

Shorter flows + speed

Inventory

Position products close to expected

demand.

Inventory Planning

Placement optimization

Availability; transfers

Fewer long-distance moves

Transportation

Optimize routing and direct lanes.

Transportation

Lane redesign

Distance; utilization

Lower complexity + faster

delivery

Fulfillment

Align FC and delivery-station flows to

regional density.

Fulfillment Ops

Flow stabilization

Speed; touchpoints

Better service economics

Technology

Continuously refine optimization and

fulfillment software.

Science / Engineering

Release cycles

Model accuracy;

adoption

Faster decisions + scalable

network

Supply Chain Services

Extend connected logistics capabilities to

external channels and businesses.

ASCS

2026 service expansion

Adoption; service

economics

Higher network utilization

13. Research Basis & Document Integrity

Amazon Science — “Sizing down to scale up: How Amazon reworked its fulfillment network to meet

customer demand” (Jul. 24, 2023)

Primary source for the eight-region design, regionalization rationale, modeling process, Jan. 18, 2023 pilot, accelerated rollout, 62%

→

76% in-region fulfillment and

routing/transportation effects.

Amazon Supply Chain Services — “From inbound to last mile, Amazon’s logistics network is open for

business” (May 3, 2026)

Primary source for the 2026 expansion of Amazon’s connected logistics capabilities across inbound transportation, storage/distribution, fulfillment and parcel

delivery.

Amazon Freight — “Amazon Freight LTL is now open to all shippers” (Jun. 10, 2026)

Current evidence of Amazon extending freight-network capabilities to businesses of all sizes and destinations.

Amazon Supply Chain Services — Distribution & Fulfillment (2026)

Current description of storage, inventory positioning, multi-channel fulfillment and distribution capabilities.

Integrity note:

This is a research-based synthesized Action Plan, not an official Amazon publication. It organizes documented Amazon initiatives into an execution

framework. Amazon trademarks and logos belong to Amazon and its affiliates; the visual treatment is not intended to imply Amazon sponsorship or authorship.

FINAL ACTION-TO-IMPACT CHAIN

Model the network

→

regionalize flows

→

position inventory near demand

→

optimize routes

→

measure speed,

distance, utilization and cost

→

continuously refine the network.

Amazon’s U.S. Fulfillment Network Regionalization Action Plan

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