Amazon focuses on using artificial intelligence to speed up delivery services: learn more
Amazon has said it is focusing on using artificial intelligence (AI) to speed up delivery services, aiming to minimize the distance between its products and customers, media reported on Monday.
Amazon’s head of global operations for North America and Europe Stefano Perego shed light on the significant ways the company is leveraging the power of artificial intelligence to revolutionize its logistics operations, highlighting transportation as one area, specifically mapping and route planning taking into account variables such as weather, CNBC reported.
Another area he highlighted is when customers search for products on Amazon to help them find the right products.
“I think one area that we see as key to reducing operating costs is inventory placement,” Perego said.
“Now I’m pretty sure you’re familiar with the wide variety we offer to our customers. Imagine the complexity of the problem of deciding where to place a warehouse unit. And to place it in such a way that we shorten the delivery distance to the customers and increase the delivery speed,” he added.
Additionally, according to the report, the tech giant has focused on “regionalization” to deliver products to customers from warehouses near them instead of sourcing from elsewhere in the country.
However, this requires the use of technology that can analyze data and patterns to predict which products are in demand and where.
This is where artificial intelligence comes in. If the product is closer to customers, Amazon can deliver same-day or next-day, similar to what its Prime subscription service offers.
Amazon also uses robotics in its fulfillment centers to help with repetitive tasks such as lifting heavy packages.
The company says robotics handles 75 percent of Amazon’s customer orders, according to the report.
Meanwhile, Amazon has launched a new immersive shopping experience called “Amazon Anywhere” that allows users to purchase physical products within games and apps.
The service introduces Amazon’s online marketplace to the world of video games and mobile apps, starting with Niantic’s new real-world augmented reality game Peridot.
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