Goal post with an Amazon flag on the front representing their goals for this year

2023 Achievements

Fastest-Ever Global Shipping: In 2023, Amazon achieved its fastest-ever global shipping times. Focusing on initiatives such as stocking inventory in regional fulfillment centers close to last-mile delivery stations achieved this.

Regional Fulfillment Centers: Amazon shipped nearly 600 million more items from in-region fulfillment centers year-over-year in the fourth quarter of 2023. This strategy helps reduce travel distance and stops per package, contributing to faster deliveries.

Same-Day Delivery Expansion: Amazon expanded its same-day delivery service. They did this by adding nine new dedicated sites and serving 18 additional U.S. cities. The total number of dedicated same-day sites across the U.S. is now more than 55.

Amazon Pharmacy: The company enhanced its Amazon Pharmacy service with generative AI. As a result, they now offers same-day delivery in select cities, including Seattle, Austin, Indianapolis, Miami, and Phoenix.

2024 Goals

Amazon has set a 2024 goal for its operations teams to have a better sense of incoming inventory. This would allow them to align it with customer demand in a specific region, thereby improving efficiency.

Optimizing Operations Network: Amazon aims to optimize its operations network further by shipping more products from locations closer to customers. The goal is to speed up deliveries and reduce travel distance and stops per package.

Refining Regionalization Model: In the U.S., Amazon plans to refine its regionalization model. This is to ensure that each region is the right size, efficient, and operating smoothly.

Prime Air Drone Delivery Expansion: Amazon plans to expand its Prime Air drone delivery program to a new U.S. location and Italy in 2024.

Sequoia Robotic Storage System: Amazon intends to roll out its Sequoia robotic storage system to more fulfillment facilities in an effort to enhance automation and efficiency in its operations.

Continuous Improvement: Doug Herrington, worldwide CEO of Amazon Stores, emphasizes that while Amazon is proud of its progress, the company is not satisfied and acknowledges there is more to be done. The focus on delivery speeds is a global, multi-year effort with the aim of continuously improving customer satisfaction.