Amazon has implemented a new approach based on the artificial intelligence (AI) to expedite deliveries to customers who live near its warehouses, reports the CNBC. Specifically, the system uses AI to rank items so that they appear in Amazon search results with a higher priority if they are located near the user. As a result, these items are delivered faster and repeat business is encouraged.
As manifested Stefano Perego, Vice President of Customer Fulfillment and Global Operations Services for North America and Europe at Amazonin statements collected by the CNBCa key focus right now for Amazon is using AI to figure out where to put your inventory: “I think one area that we see as key to lowering the cost of service is inventory placement. So by now, I’m pretty sure you’re familiar with the wide selection we offer our customers. Imagine how complex the problem is of deciding where to put that unit of inventory. And to position it in a way that we reduce the distance to meet customers, and increase the speed of delivery«.
To reduce costs and improve delivery efficiency, Amazon has divided the United States into eight regions and has established warehouses in each of them. This strategy makes it possible to store the most requested items in each region, which facilitates local shipping and reduces delivery times and costs. According to Perego, approximately 76% of the products customers order now come from facilities within their own region. In this regionalization effort, AI plays a key role. Through data and pattern analysis, the system uses AI to predict which products will be in high demand and where. This information is used to determine which items should be stocked in each region, thus optimizing availability and expediting deliveries.
Automation and use of robots
Amazon it is also using robotics in its fulfillment centers to help with heavy and repetitive tasks and thus improve efficiency in the packaging process. According to the company, about 75% of Amazon customer orders are handled by robotics.
However, this has raised concerns about the loss of human jobs. In this point, Perego describes automation as “collaborative robotics”underlining how Amazon sees humans and technology working together: “I think what’s happening is really a transformation of the type of jobs.”. The executive reiterates that when automation and AI become widespread, “will change, rather than eliminate the jobs that workers do”.
Amazon plans to increase its logistics network in Europe
In addition, the company continues with its plans to increase the logistics network in Europe. Which, currently, already exceed 70 distribution centers. so it advertisement I perego during the shoptalkheld last week in Barcelona.