Amazon has announced its plan to prioritize the utilization of artificial intelligence (AI) in order to accelerate its delivery services. The company aims to minimize the geographical gap between its products and customers.
As per the report of CNBC, Stefano Perego, the Vice President of Customer Fulfillment and Global Operations Services for North America and Europe at Amazon has provided insights into how the company is leveraging artificial intelligence (AI) to transform its logistics operations. Perego specifically highlighted transportation as an area where AI is being utilized, particularly in mapping and route planning. By considering variables such as weather conditions, Amazon aims to enhance its delivery services using advanced AI technology.
Stefano Perego also emphasized another significant area where Amazon is leveraging artificial intelligence. He highlighted the use of AI technology to assist customers in finding the appropriate products when they search on the Amazon platform. By employing advanced AI algorithms, Amazon aims to enhance the search experience and help customers discover the right goods more effectively.
Perego was quoted saying, "I think one area that we consider key in order to lower cost to serve is on inventory placement,".
He further added, "So now, I'm pretty sure you're familiar with the vast selection we offer to our customers. Imagine how complex is the problem of deciding where to place that unit of inventory. And to place it in a way that we reduce distance to fulfil to customers, and we increase speed of delivery.”
According to the report, the tech giant has been dedicated to a "regionalisation" initiative, aiming to deliver products to customers from nearby warehouses instead of shipping them from distant locations within the country. This strategy emphasizes minimizing the distance between the warehouses and customers, enabling faster and more efficient delivery services.
To implement this approach, the use of advanced technology capable of analyzing data and patterns becomes crucial. This technology enables Amazon to forecast which products will be in high demand and where, facilitating the strategic placement of goods in nearby warehouses. By harnessing data analysis and pattern recognition, Amazon can optimize its inventory management and ensure that popular products are readily available in the right locations to meet customer demands efficiently.
Artificial intelligence plays a pivotal role in this process. By leveraging AI technology, Amazon can ensure that products are located closer to customers, enabling the provision of same-day or next-day delivery, similar to the expedited services offered through its Prime subscription. The utilization of AI assists in optimizing logistics operations, predicting customer preferences, and strategically positioning products in nearby warehouses to meet fast delivery expectations. This integration of AI enhances the overall efficiency and customer experience of Amazon's delivery services.
In its fulfilment centres, Amazon utilizes robotics to aid in performing repetitive tasks such as lifting heavy packages.
As per the report, the company states that robotics is responsible for handling 75 per cent of Amazon customer orders.
Amazon has recently introduced a new immersive shopping experience called "Amazon Anywhere," enabling users to make purchases of physical products within games and apps.
Amazon's "Amazon Anywhere" service brings the company's online marketplace into the realm of video games and mobile apps, commencing with its integration into Niantic's latest augmented reality game, Peridot, which operates in the real world.
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Inputs from IANS
