Andy Jassy, Amazon’s CEO, has acknowledged the ongoing adjustments the company is making in response to changes in demand caused by the pandemic. Speaking during the first-quarter earnings call, Jassy highlighted the impact of these changes on the business, particularly in terms of delivery speed. To adapt to the surge in demand, Amazon significantly expanded its fulfillment center footprint and built a transportation network comparable in size to UPS within a few years.
This expansion has resulted in a reconfiguration of Amazon’s fulfillment network, with a shift from a national fulfillment network in the United States to a regional one. The company has created eight interconnected regions, each with broad selection and the ability to operate in a self-sufficient manner while still offering national delivery when needed. This strategic approach has reduced travel distances, resulting in lower costs and faster delivery times for customers.
As Amazon continues to refine its delivery capabilities, it is making progress in providing customers with more one-day and same-day deliveries. The company is on track to achieve its fastest Prime delivery speeds ever in 2023. By optimizing its fulfillment network and redesigning various processes, Amazon aims to drive better productivity and improve customer satisfaction.
