BFI4, located in exurban Kent, Wash., is Amazon’s flagship fulfillment center and regularly hosts senior company leaders—Chief Executive Officer Andy Jassy dropped by recently—who want a better understanding of what happens after a shopper clicks “Buy Now.” It was the first facility of its kind capable of processing more than 1 million items a day, three times what was possible at the company’s state-of-the-art warehouses a decade ago. Improving technology means Amazon can stay several steps ahead of brick-and-mortar rivals Walmart Inc. and Target Corp., which are now adopting many of the practices Amazon has worked on for years.
More than the physical robots, the stars of Amazon’s facilities are the algorithms—sets of computer instructions designed to solve specific problems. Software determines how many items a facility can handle, where each product is supposed to go, how many people are required for the night shift during the holiday rush, and which truck is best positioned to get a stick of deodorant to a customer on time. “We rely on the software to help us make the right decisions,” says Shobe, BFI4’s general manager.
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