Amazon’s AI logistics warehouses

TBTech looks at how Amazon leverages artificial intelligence logistics warehouses
TBTech looks at how Amazon leverages artificial intelligence logistics warehouses

Warehousing and logistics are currently an industry with various complex operations that need flexibility and innovation. This industry is looking to digitally transform companies to improve processes and speed up all aspects warehouse logistics.

One example of a warehouse that has already implemented various technologies to transform its business is Amazon. Founded in 1994, the company has become one of the biggest players within technology, web services, logistics and warehousing.

With Amazon being one of the biggest companies globally, it has not limited the use of its AI to one business sector. The most important sector that AI and machine learning has been introduced into the delivery is highly dependent on a well-run warehouse operation.

Amazon was the first company to introduce one-day shipping into their services. This involves various complexities within their fulfilment centers and these processes will continuously adapt and evolve to be more streamlined, automated, and sophisticated.

There are between 1-4 million product bins in each Amazon Fulfilment Center. The team controls computer vision systems that examine images to track each item’s position within the warehouse and allocate them into specific pods.

AI improving processes

Amazon makes use of AI to improve supply and make sense the data, automating the capability to forecast customer demand, assess product availability, optimize delivery routes, and personalize communication with customers while tracking the whole supply chain.

  • Forecasting customer demand and product availabilityThe company utilizes artificial intelligence to determine the number of units of a product it anticipates customers buy. This then factors into where the product is stocked to ensure it is as close to the people who will buy it.
  • Personalize communicationsThe role of AI in Amazon’s recommendation engine is massive, as it generates 35% of the company’s revenue. By collecting data from individual customer favorites and purchases, the recommendation engine personalizes the list of products customers would be interested in purchasing.
  • Optimize delivery use: Once a shipping label is placed on the box, the transportation execution processes take over and use machine learning to determine the package’s most effective route from point A to point B. The box is then sent to a waiting trailer based on its shipping method, speed of delivery, and location.
  • Ensuring one-day delivery: Machine learning and optimization algorithms enhance each warehouse process for one-day shipping.

“Most people look at an Amazon Fulfillment Center and imagine all the stuff inside. When I look at it, I see data,” said Russell Allgor, Chief Scientist, Amazon Worldwide Operations.

Are robots taking over?

Amazon regularly analyzes the journey of each order so it can optimize continuously. AI-powered robots carry the products around the warehouse, and algorithms help them to learn in real-time where the order is, where it should be, and how to get there the fastest viable way.

In 2021, robots in the workplace are still used for repetitive tasks that can easily be programmed into their systems. Scott Anderson, Director of Amazon Robotics Fulfillment has said that technology is at least 10 years away from fully automating the processing of a single order picked by a worker inside a warehouse. “In the current form, the technology is very limited. The technology is very far from the fully automated workstation that we would need,” he added.  

The warehouses that are currently using robots only utilize them to manage general merchandize, including clothing, bikes, and top tech products. Robots currently operate at 26 of Amazon’s more than 175 fulfillment centers. Amazon uses small, Roomba-shaped robots called “drives” to deliver large stacks of products to their fellow human workers by following designated paths around the warehouse.

Led by Amazon Robotics, fulfillment center automation is supported by technologies including autonomous mobile robots, sophisticated control software, language perception, computer vision, depth sensing, machine learning, object recognition, and semantic understanding of comments.

According to Amazon, the integration of robots at fulfillment centers assist in storing 40% more inventory, which leads to rapidly fulfilling Prime one- or two-day shipping orders, and more robotics and AI-related innovations will continue to expand and become incorporated into Amazon’s global operations model.

READ MORE:

Interested to see what the Amazon Fulfilment Centers look like? Check out the Amazon Fulfillment Center Video Tour below.

For more news from Top Business Tech, don’t forget to subscribe to our daily bulletin!

Follow us on LinkedIn and Twitter

Luke Conrad

Technology & Marketing Enthusiast

Data-Sharing Done Right: Finding the Best Business Approach

Bart Koek • 20th November 2024

To ensure data is not only available, but also accessible to those that need it, businesses recognise that it is vital to focus on collecting, sorting and governing all the data in their organisation. But what happens when data also needs to be accessed and shared across the business? That is where organisations discover a...

Nova: The Ultimate AI-Powered Martech Solution for Boosting Sales, Marketing...

Erin Lanahan • 19th November 2024

Discover how Nova, the AI-powered engine behind Launched, revolutionises Martech by automating sales and marketing tasks, enhancing personalisation, and delivering unmatched ROI. With advanced intent data integration, revenue attribution, and real-time insights, Nova empowers businesses to scale, streamline operations, and outperform competitors like 6Sense and 11x.ai. Experience the future of Martech with Nova’s transformative AI...

How E-commerce Marketers Can Win Black Friday

Sue Azari • 11th November 2024

As new global eCommerce players expand their influence across both European and US markets, traditional brands are navigating a rapidly shifting landscape. These fast-growing Asian platforms have gained traction by offering ultra-low prices, rapid product turnarounds, heavy investment in paid user acquisition, and leveraging viral social media trends to create demand almost in real-time. This...

Why microgrids are big news

Craig Tropea • 31st October 2024

As the world continues its march towards a greener future, businesses, communities, and individuals alike are all increasingly turning towards renewable energy sources to power their operations. What is most interesting, though, is how many of them are taking the pro-active position of researching, selecting, and implementing their preferred solutions without the assistance of traditional...

Is automation the silver bullet for customer retention?

Carter Busse • 22nd October 2024

CX innovation has accelerated rapidly since 2020, as business and consumer expectations evolved dramatically during the Covid-19 pandemic. Now, finding the best way to engage and respond to customers has become a top business priority and a key business challenge. Not only do customers expect the highest standard, but companies are prioritising superb CX to...

Automated Testing Tools and Their Impact on Software Quality

Natalia Yanchii • 09th October 2024

Test automation refers to using specialized software tools and frameworks to automate the execution of test cases, thereby reducing the time and effort required for manual testing. This approach ensures that automation tests run quickly and consistently, allowing development teams to identify and resolve defects more effectively. Test automation provides greater accuracy by eliminating human...