Week 5 Case Study 10.3 – Amazon, What is the importance of logistics

Week 5 Case Study

Read “Case 10.3: Amazon” and write an essay that answers the following questions:

1. What is the importance of logistics in Amazon’s business model?

2. How has Amazon used AI and machine learning to improve its supply chain management and customer experience?

3. What are the benefits of Amazon’s drone delivery system, and how could it revolutionize the delivery industry?

4. What are some ethical concerns related to the use of Amazon Rekognition for facial analysis and identification?

5. In what ways has Amazon’s use of AI and machine learning technology contributed to its success and competitiveness in the market?

6. How has Amazon’s AI technology, such as Alexa and Rekognition, impacted the job market for human workers in the company’s warehouses and distribution centers?

7. What role do you think AI and machine learning will play in the future of Amazon and the ecommerce industry as a whole? 

Requirements:

· There is no specific page requirement for your analysis. Instead, your work will be evaluated based on how thoroughly it addresses each of the questions that have been outlined for you.

· You must utilize proper APA formatting and citations throughout your paper. If you use any supporting evidence from external sources, it is imperative that you provide accurate citations for each reference.

· You must include a minimum of two sources from scholarly articles or business periodicals, aside from the course textbook. 

· Include your best critical thinking and analysis to arrive at your justification.    

 

 

Case 10.3: Amazon

Amazon is known for being the best online store in the world. Amazon is constantly coming out with new services like Amazon Echo, Amazon Music, and Amazon Prime. Not only does Amazon provide a variety of products for their customers, but they also employ thousands of people all over the world. Their jobs consist of oper- ating in warehouses, distribution centers, hub lockers, and as delivery drivers. In other words, a large part of their jobs is in logistics.

Amazon’s supply chain management is vital to its online business. When orders are made, and the warehouses process the orders, employees pack up their branded vans and set forth to deliver each package to the customers. To help deliver pack- ages even faster than same-day delivery, Amazon is working to provide working drones—also known as Amazon Air—to deliver these packages. This would benefit the company and the customer. The company would be able to cut down on delivery drivers and save more money by doing so, and the customers would be able to select the option of getting their package delivered in just 30 min. This would be a first for any delivery service company to come out with. Despite owning warehouses all over the world, Amazon makes it a priority to ensure supply meets demand at all times. Inventory is constantly being restocked and kept an eye on at all times. Logistics in Amazon is a large part of what makes the company so successful. For example, the transportation system is one of the main reasons customers buy off of Amazon. They are able to buy products from the Amazon website and get it deliv- ered whenever they want and prefer. There’s a wide variety of customer products available on the Amazon website. These items are available at all Amazon’s ware- houses. This is what makes Amazon so easily accessible.

The AI and machine learning systems in Amazon are very brilliant and important for the company. A recent AI system that Amazon created is called the Amazon

Echo. This technology is used as a virtual assistant through the speakers of a device. The Amazon Echo allows users to ask any questions, activating the trigger score by saying “Alexa” before asking their question. This AI system is the first of its kind and has other companies developing similar technology since it’s so unique and popular. Alexa’s foundation from the beginning had been a combination of machine learning and data. As the amount of data it collects gets denser, its ability to learn and use AI also increases with its popularity. One of the most prominent features Alexa uses that also increases its competitiveness against other voice-controlled digital assistant devices is its ability to take data that was a mistake and learn it so that it does not repeat the second time it happens. Another function Alexa has acquired through machine learning is the ability to register follow-up questions without the need for consumers to repeat the system’s wake word. In addition, Amazon has also implemented an active learning technology so that the device knows where it needs assistance from a human expert. This allows the device to understand its errors and catch them before they can occur, significantly reducing the number of times it makes inaccuracies. Amazon also uses the system called transfer learning to help the device reduce the amount of errors it makes in a year. This system enables deep learning, which can be a more advanced algorithm to model many different fields and use those domains to transfer and enhance it as a new skill. Alexa now has many capabilities that put it far ahead of its competition. By continuing to use AI and machine learning in their systems, Amazon has upgraded the device to do many tasks, such as communicate with different people at the same time, understand different languages, and the ability to learn from its users’ preferences and needs. There is no doubt that Amazon’s Alexa device will be the most dominant voice-controlled digital assistant device in the world. So far, they have shown tremendous capabilities, and it only continues to become more smarter and consumer-friendly from here.

Amazon Rekognition device is an artificial intelligence (AI) solution that allows users to integrate picture and video analysis into their apps. Amazon Rekognition detects objects; recognizes individuals, places, events, and words; and recognizes improper material. The device is extremely accurate in facial analysis and identifi- cation, allowing it to compare different faces and provide correct user authentica- tion. The reason why Amazon Rekognition is helping their business increase competitiveness boils down to the simple use of the product, provision of rapid responses, how inexpensive it is to acquire, and it can be used to analyze millions of items, shapes, and products. Amazon Rekognition’s future depends on the inclusion of more data and the continuous inclusion of machine vision. Specifically, common cases for using Amazon Rekognition include searchable image and video libraries, face-based user verification, detection of personal protective equipment, sentiment and demographic analysis, facial search, unsafe content detection, text detection, and custom labels. While technology has a long way to go, it is believed that Amazon’s AI gadgets will have fast advancements in the next few years.

Amazon Web Services and development teams have created easy-to-use and powerful AI tools and services that have been vital to their business environment’s success. According to Bezos, AI is a primary driving force behind Amazon’s

success that customers benefit from speedier delivery of Amazon’s products and services, thanks to AI gadgets such as Alexa and Rekognition. These AI capabilities have also enabled Amazon customers to analyze data, identify photos and graphics, and interpret voice without the need for costly high-end computer systems. Amazon is continuously growing and improving their AI technology. It has claimed itself as an AI company and has benefited a lot from the latest technology. With advanced AI, their inventory is always stocked, they have a good idea of what customers are looking for, and they are staying at the top of their game as the best online store in the world.

Artificial intelligence and big data within the supply chain management industry are continuing to be utilized at a rapid pace as time goes on. While relatively new to the work field, SCM is embracing big data for a variety of reasons. The consumption of big data allows for the integration of greater technologies to be studied and devel- oped further, allowing the processing, manufacturing, and distribution sectors to be capitalized to their fullest potential. Despite the challenges that accompany big data analytics currently, there is ample evidence for exponential growth within SCM due to the number of opportunities that can arise within the industry. It is evident that big data utilization will continue to flourish within related industries due to the sharp competitive edge it provides, as well as allowing the logistics industry to grow at its fastest pace since it first came about.

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