Amazon has invested heavily in speedy delivery to improve its last mile delivery. More packages are arriving in a day or less.
The retail giant has been in the business for over 30 years. Now, nearly 60% of orders placed through Prime in the top 60 US metro areas are arriving the same or the next day.
But what is their secret sauce? Shortening the distance deliveries travel to reach customers, improving inventory placement, and building out same-day delivery service.
This year, Amazon hit its fastest Prime delivery speeds ever in the US and around the world. More than 5 billion items arrived the same or next day globally. That’s an increase of more than 30% year-over-year.
In this article, we’ll track down 11 of Amazon’s landmark achievements that may have steadily contributed to its excellence in the logistics field.
1. Drone Deliveries for Last Mile Delivery with Prime Air
Amazon is delivering parcels in the UK in under an hour. Initially, concerns and complaints were raised by the community about the drones’ loud noise.
The retailer was given the green light by the Federal Aviation Administration (FAA) regulator to operate its drones Beyond Visual Line of Sight (BVLOS). This means more metros in the US will be seeing drones flying around with small parcels.
WATCH: How does Amazon deliver parcels with drones?
2. Efficient last mile delivery: Electric Delivery Vehicles (EDVs)
To cut down on last mile delivery time, even if it is only a few seconds for each stop, Amazon uses AI-powered electric vans to organize packages.
The vision-assisted package retrieval (VAPR) system eliminates the need for drivers to manually check key details like customer names or addresses once they arrive at the address.
They simply follow the VAPR’s green light, grab the package, and go.
3. Smart Glasses for Drivers to Improve Last Mile Delivery
Imagine the time you can spare by receiving turn-by-turn navigation on a small embedded screen by simply wearing smart glasses.
You can see the route you must follow and get instructions at each stop. This is the type of smart glasses Amazon is developing to provide its drivers with visual directions and hands-free package scanning.
This cuts down the last mile delivery time when drivers don’t make careless mistakes. This type of technology has the potential to take the last mile delivery process to a new level for the entire sector.
WATCH: Can Amazon delivery glasses cut delivery time?
4. AI-Powered Searching Results Helps Last Mile Delivery
Amazon uses Machine Learning (ML) algorithms to continuously improve the relevance of search results and product recommendations on its platform.
Amazon’s machine learning algorithms not only enhance customer shopping experiences but also optimize inventory allocation by predicting demand.
If it can predict demand there is a lower risk that products can run out, which impacts the last mile delivery experience.
Enhancing Delivery Speed in the Final Mile
By understanding what customers are likely to buy, Amazon ensures popular items are stored closer to key fulfillment centers. This enhances the delivery speed for last mile delivery.
This strategic placement reduces shipping times and accelerates the final mile.
When there are accurate recommendations of products given to customers, it directly translates to faster delivery of in-demand products.
5. Robotic Delivery Assistants Help With Last Mile Delivery
Amazon was one of the first to invest in fully automated delivery robots. Back in 2019 it introduced delivery robot Amazon Scout.
The size of a small cooler, it first started rolling out packages to customers in Washington. Scout embraced the last mile delivery market, offering free same-day, one-day, and two-day shipping for Prime members.
WATCH: Amazon Scout one of the first robot deliveries on the scene
6. Same-Day Delivery Expansion To Speed Up Last Mile Deliveries
Amazon started with same-day delivery to Prime members in 2015. A decade later, it has expanded to 110 US metro areas.
Amazon is closing its same-day delivery offering from retailers’ local stores. Supply Chain Dive reports that Amazon Today expected stores to maintain a 99% pickup readiness rate.
7. Last Mile Delivery Gets Faster With Micro-Fulfillment Centers
With micro fulfillment, customers get access to more products they want without having to visit multiple stores.
Small-scale warehouse facilities are placed in densely populated urban areas to get stock closer to consumers and to improve the delivery process by reducing delivery times.
Amazon’s most advanced fulfillment center is situated in Shreveport, Louisiana. The next-generation facility reduces fulfillment processing times by up to 25%.
According to The Wall Street Journal, Amazon is buying up industrial property and restructuring its network to improve package delivery and cut shipping costs.
8. Amazon Flex Program
Amazon Flex helps contractors to deliver for the retail giant on a flexible contract.
What’s in it for the company? It enables Amazon to expand its network and improve its delivery capacity during peak seasons like Black Friday and Christmas.
9. Sustainability Initiatives to Improve Last Mile
According to Carbon Care, the European Environment Agency expects global logistics to account for 40% of global carbon emissions by 2050. Amazon has made a number of efforts toward sustainability, but there are concerns about whether it’s enough.
Amazon is investing in Glacier, an AI and robotics enterprise. Glacier uses AI-powered robots to automate the sorting of recyclable materials.
So far, it has delivered 680 million packages delivered by electric vehicles globally. It has also ordered 100,000 electric delivery vehicles. This is the largest order ever for electric vehicles.
10. Advanced Package Tracking For The Last Mile Deliver
Parcel theft has been on a steady rise over the years. According to a study, more than half (60%) of Americans are concerned about porch piracy.
Businesses use real-time tracking for better visibility of their goods, especially to prevent loss and cross-border shipping challenges.
Real-time tracking has helped Amazon to explain to customers when there is a hold up of their parcels. This could be due to production delays, inventory shortages, or local delivery drivers.
WATCH: What is real-time tracking?
11. Integration of AI and Robotics
Amazon has more than 520,000 robotic drive units worldwide. By using AI and robotics in fulfillment centers, fast track the order processing and accuracy for the last mile delivery.
Amazon’s Proteus robot navigates facilities to move GoCarts, which streamlines the transportation of packages. It also reduces manual labor, allowing for faster handling.
It also uses robots to sort items faster, automatically scan packages, and place storage in containers to boost speed.
Final word: Last mile delivery in the spotlight
Amazon’s unmatched investment in technology and logistics innovation has redefined last-mile delivery.
It’s setting new benchmarks in speed and efficiency. Their “secret sauce” lies in shortening delivery distances, optimizing inventory, and leveraging cutting-edge AI.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
