Amazon uses AI to reduce damage by 24%

Amazon AI

Amazon is on forecast to sell and ship more than $300 billion worth of products this year. They are looking at innovative ways of reducing costs. One such way is by reducing product delivery damage. Amazon used AI (Artificial Intelligence) to analyse 3 months of delivery data with huge success. With clean sales data, intelligent algorithm development and deep learning, they have seen a the reduction of product damage by 24%!

The problem
To reduce cost and damaged by choosing the right type of packaging.

The solution
By creating an algorithm and analysing logistical data for over 250,000 products for:

  • Product type
  • Fragility
  • Weight
  • Size and shape
  • Type of packaging
  • Cost of packaging
  • Cost of damage and replacement
  • Shipping type
  • Distance travelled

The result
By using AI, Amazon was able to compare many variables and work out an optimum algorithm for packaging and helped reduced damage by whopping 24%. That may not sound much, but based on billions of sales, it is a substantial saving.

My key thoughts

  • Perfect use of AI technology. AI can solve technical issues, improve user experience and save lots of money and resources.
  • By having a clear business goal, analysing a cross section of data, applying the results can make a huge difference to a companies bottom line.
  • Sometimes the answers are hidden. All it takes is focus and the right AI implementation.
  • In an ever competitive world, with smaller margins, AI can help make the difference and give you the critical edge for years to come.

More information

Science behind the AI – click here

Credit

Based on interesting article by VentureBeat – click here

Amazon logo property of Amazon

About and contact me

I am a technology consultant helping business and organisations get the best out of technology. I am unique as I offer the latest technology and vendor neutral advice, combined with years of experience in technology and business. My aim is to add value to your business or organisation.

Please contact me for more information on artificial intelligence and how it can add value to your business or organisation.

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