San Francisco, May 15 Amazon has said that it will be focusing on using artificial intelligence (AI) to speed up delivery services, aiming to minimise the distance between its products and customers, the media reported on Monday.
The Vice President of Customer Fulfillment and Global Operations Services for North America and Europe at Amazon, Stefano Perego, shed light on the remarkable ways in which the company harnesses the power of AI to revolutionise its logistics operations, highlighting transportation as one area, specifically in mapping and route planning, taking into account variables like the weather, reports CNBC.
Another area he highlighted is when customers search for products on Amazon to help them find the right goods.
"I think one area that we consider key in order to lower cost to serve is on inventory placement," Perego was quoted as saying.
"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," he added.
Moreover, the report said that the tech giant has been focusing on a "regionalisation" effort to ship products to customers from warehouses near them rather than from elsewhere in the country.
However, doing so necessitates the use of technology capable of analysing data and patterns in order to forecast which products will be in demand and where.
This is where artificial intelligence comes in. If a product is closer to customers, Amazon will be able to provide same-day or next-day delivery, similar to what its Prime subscription service provides.
Amazon also employs robotics in its fulfilment centres to assist with repetitive tasks like lifting heavy packages.
According to the company, robotics handles 75 per cent of Amazon customer orders, the report said.
Meanwhile, Amazon has launched a new immersive shopping experience called "Amazon Anywhere", which will allow users to buy physical products in games and apps.
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