Amazon Regionalized Fulfillment Network
By 2021, Amazon was shipping billions of packages every year through its large network of warehouses across the U.S. However, as the company grew, it faced rising costs and challenges in delivering items quickly. To solve this, Amazon brought together a team of experts in supply chain and operations research that used network optimization, machine learning and simulation to create a new strategy called Regionalization. In 2023, this strategy helped reduce cost to serve by $0.45 per item in the U.S., and helped Amazon achieve its fastest delivery speeds ever globally, improving both efficiency and customer satisfaction.
