Amazon is ramping up its use of artificial intelligence (AI) to improve logistics. The tech giant is focusing on using A.I. to minimize the distance between products and customers to speed up deliveries, as Stefan Perego, Amazon’s vice president of customer fulfillment and global ops services for North America and Europe, explained.
Transportation and Route Planning with A.I
One area in which Amazon is utilizing A.I. is transportation and route planning. This involves taking into account various factors, such as weather, to optimize routes and delivery times.
Product Search Optimization with A.I.
Amazon is also using A.I. to help customers find the right products by analyzing data patterns. A.I. analyzes search queries and customer buying history to predict what items will be in high demand and where they should be placed in inventory.
Inventory Placement with A.I.
Amazon’s main focus right now is using A.I. to pinpoint the ideal locations to place inventory. By doing so, it can minimize costs and delivery time. The problem is complicated by the vast selection of goods that Amazon offers, which must be placed strategically to reduce distances to customers and expedite delivery times.
The Pros and Cons of Robotics in Fulfillment Centers
To reduce repetitive and laborious tasks, Amazon has also implemented collaborative robotics in its fulfillment centers. The goal is to facilitate a working relationship between humans and technology, with automation taking on the heavy lifting and assessment of routine tasks. This opens new opportunities for human employees who can perform judgment-oriented jobs, while also improving efficiency and reducing the risk of physical injuries.
Amazon’s success with its regionalization effort demonstrates that A.I.-driven solutions can make a tangible difference in logistics. Harnessing the power of A.I. in inventory placement and route planning will continue to revolutionize retail and logistics industries, promising earlier and more reliable customer deliveries in the future.