WEBVTT - Amazon Prepares Its Operations Network to Deliver During Peak Holiday Period 0:00:02.440 --> 0:00:06.880 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.240 --> 0:00:11.120 This is Bloomberg Business Week with Carol Messer and Tim 0:00:11.160 --> 0:00:15.440 Stenebek on Bloomberg Radio taking a look at chairs about TSMC. 0:00:16.320 --> 0:00:19.759 They finished the day higher. Other Taiwanese tech supply chain 0:00:19.760 --> 0:00:22.759 companies rose today because of some news in the world 0:00:22.800 --> 0:00:26.200 of robotics. Carol local media reported that in Vidia is 0:00:26.239 --> 0:00:30.120 looking for local suppliers for humanoid robots. Humanoid robots, you 0:00:30.160 --> 0:00:33.959 know what these things are? Yeah, I M no, I'm not. 0:00:34.440 --> 0:00:38.000 Their robots doesn't look like humans. Tesla's got optimists totally 0:00:38.080 --> 0:00:40.559 Supposedly Figure AI is working on him too. 0:00:40.640 --> 0:00:42.680 I feel like everybody is. And they talk about, you know, 0:00:42.800 --> 0:00:45.479 how it can really help, whether it's in healthcare, but 0:00:45.600 --> 0:00:49.760 also in terms of working in I think warehouses and 0:00:49.760 --> 0:00:51.320 so on and so forth. There's a lot of things 0:00:51.360 --> 0:00:54.600 that we think that they can applied to. And Sarah 0:00:54.640 --> 0:00:57.360 Rhodes definitely watches this space very closely. She's vice president 0:00:57.360 --> 0:01:00.520 of Global Operations at Amazon, which just includes all the robotics, 0:01:00.560 --> 0:01:03.680 AI and general innovation happening when it comes to fulfillment 0:01:03.760 --> 0:01:06.560 centers and delivery at Amazon's got a big job. She 0:01:06.600 --> 0:01:10.080 joins us here in Opplelnberg Interactive Brokers Studio. Welcome, Welcome, 0:01:10.240 --> 0:01:11.080 so glad to have you here. 0:01:11.080 --> 0:01:12.720 How are you? Thank you for having me. It's a 0:01:12.720 --> 0:01:15.000 big day for us, So it's an exciting time for 0:01:15.040 --> 0:01:15.600 us at Amazon. 0:01:15.640 --> 0:01:17.440 I'm going to let Tim do the first question because 0:01:17.480 --> 0:01:18.360 he's got a good one. 0:01:18.520 --> 0:01:20.679 Is it harder to be a VP at Amazon or 0:01:20.720 --> 0:01:21.760 fly fighter jets? 0:01:22.680 --> 0:01:26.919 Well, they're different, but both can be exciting and enjoyable 0:01:27.080 --> 0:01:29.000 and positively challenging at the same time. 0:01:29.080 --> 0:01:30.600 So let's talk about your path a little bit. We're 0:01:30.600 --> 0:01:32.399 going to get to cyber Monday. We got a nice 0:01:32.440 --> 0:01:35.040 chunk of time with you, but you have a really 0:01:35.040 --> 0:01:36.240 cool path. Tell us your story. 0:01:36.600 --> 0:01:40.480 Sure, Well, I've been with Amazon approaching fourteen years. Started 0:01:40.480 --> 0:01:43.080 out as an operations manager in Lexington, Kentucky in our 0:01:43.120 --> 0:01:47.040 fulfillment operations. Spent time in Kentucky, Texas, spent three years 0:01:47.080 --> 0:01:49.800 in the UK, which was an amazing experience. Returned to 0:01:49.800 --> 0:01:52.440 the US in twenty seventeen, and led a team that 0:01:52.440 --> 0:01:54.360 built out our hair hal network. So we have a 0:01:54.440 --> 0:01:57.680 fleet of Boeing seven six seven seven three sevens. You 0:01:57.760 --> 0:02:00.480 really do have your own airlines? Well, I know that's 0:02:00.480 --> 0:02:03.520 something like that and a lot of them in Kentucky 0:02:03.640 --> 0:02:07.240 around and we have our main air hub at the 0:02:07.240 --> 0:02:10.959 Cincinnati Northern Kentucky Airport. They process over thirty flights a day, 0:02:11.400 --> 0:02:13.519 hundreds of thousands of packages daily. 0:02:13.639 --> 0:02:15.360 I didn't hear any stories about fighter jets. 0:02:15.639 --> 0:02:17.520 I'll get you. I'll get you for sure. Yeah. So 0:02:18.040 --> 0:02:21.480 spent six years building out the airhol network in the US, Europe, 0:02:21.520 --> 0:02:23.600 and India, and then a year and a half ago 0:02:23.680 --> 0:02:25.600 I took on the leadership of our global workplace health 0:02:25.600 --> 0:02:27.519 and safety teams. So we have a workforce today of 0:02:27.560 --> 0:02:31.600 over in laian employees globally across six continents. Prior to Amazon, yes, 0:02:31.600 --> 0:02:33.840 I was a Navy F eighteen Super Hornet fighter pilot. 0:02:33.880 --> 0:02:35.800 So if you've seen the movie Top Gun, Maverick the 0:02:35.880 --> 0:02:37.680 jet and the main part of that movie, that's what 0:02:37.720 --> 0:02:40.800 I had the privilege of flying. Definitely a childhood dream. 0:02:41.120 --> 0:02:42.000 Do you still fly now? 0:02:42.639 --> 0:02:45.080 Not currently. I do have a commercial pilot's license, but 0:02:45.760 --> 0:02:48.600 Amazon keeps me busy on a day to day basis. 0:02:48.639 --> 0:02:51.240 What do you find a lot of your colleagues from 0:02:51.280 --> 0:02:54.720 the Armed services are doing now? Who were pilots then? 0:02:55.440 --> 0:02:58.200 Many fly for the airlines, many went into business. I 0:02:58.200 --> 0:03:00.920 have several fellow aviators that are is this now as well, 0:03:01.720 --> 0:03:05.399 and many have joined companies like Amazon. In fact, Amazon's 0:03:05.919 --> 0:03:08.480 very veteran friendly. We've hired over forty thousand veterans over 0:03:08.520 --> 0:03:12.560 the last several years. So it tracks people that are 0:03:12.720 --> 0:03:16.000 accustomed to working with large teams of people and familiar 0:03:16.040 --> 0:03:17.640 with operational type of environments. 0:03:17.800 --> 0:03:19.160 Well, I was going to ask you, Sarah, like, what 0:03:19.200 --> 0:03:22.239 about that experience that you just has, I don't know, 0:03:22.520 --> 0:03:25.040 helped you tremendously in the job that you do at Amazon, 0:03:25.120 --> 0:03:27.119 And you've done multiple jobs and made your way through, 0:03:27.320 --> 0:03:29.119 So give us an idea of like how that carried over. 0:03:29.280 --> 0:03:31.520 Yeah, I actually get that question quite a bit, and 0:03:31.639 --> 0:03:34.520 I know it's great because it is something that people 0:03:34.520 --> 0:03:37.080 are curious about because it doesn't necessarily seem like a 0:03:37.120 --> 0:03:37.760 common path. 0:03:38.520 --> 0:03:41.240 But I think about that fighter jet, like, yes, this coordination, 0:03:41.360 --> 0:03:42.720 but a lot is what. 0:03:42.600 --> 0:03:44.680 You do on your own, right. It is a lot 0:03:44.720 --> 0:03:47.400 of decision making, for sure, but it also takes a team. 0:03:47.440 --> 0:03:50.720 You know. Jet pilot is merely an extension of the 0:03:50.760 --> 0:03:53.200 team that helps ensure that jet is up and ready 0:03:53.240 --> 0:03:54.840 to go. The folks on the flight deck of an 0:03:54.840 --> 0:03:58.520 aircraft carrier, the folks that ensure that that aircraft carrier 0:03:58.600 --> 0:04:01.480 runs safely. You know, so it is definitely a team effort, 0:04:01.520 --> 0:04:03.040 and so taking a lot of that teamwork in that 0:04:03.080 --> 0:04:07.280 team environment into the operational workspace is one thing. You know. 0:04:07.320 --> 0:04:10.040 I think decision making a bias for action, being proactive 0:04:10.040 --> 0:04:12.960 about things, looking ahead. These are some of the traits 0:04:12.960 --> 0:04:17.520 I think that translate pretty well. And yeah, I think 0:04:17.560 --> 0:04:21.080 that it's a combination of thinking big and also diving deep. 0:04:21.240 --> 0:04:22.880 Over any given day, we are going to move on, 0:04:22.920 --> 0:04:24.039 I promise, Yeah, it's okay. 0:04:24.080 --> 0:04:25.000 We have plenty of times. 0:04:25.920 --> 0:04:27.320 Well, we just because your. 0:04:27.200 --> 0:04:32.560 Backgrounds are like pretty fascinating tense moments that you had flying. 0:04:33.480 --> 0:04:36.920 Yes, landing on a moving ship at night in bad 0:04:37.000 --> 0:04:39.880 weather and you know, landing at one hundred and thirty 0:04:39.920 --> 0:04:42.440 five knots and going to zero in less than two seconds, 0:04:42.480 --> 0:04:44.800 and you know, we call it trapping a board an 0:04:44.800 --> 0:04:48.719 aircraft carrier. That that's just a lot hot, right, yes, yes, carrier. Yes, 0:04:48.760 --> 0:04:51.279 And so it takes a lot of training and concentration 0:04:51.440 --> 0:04:54.400 and precision to do that well and do that safely. 0:04:54.520 --> 0:04:56.880 So so what sproves to you? 0:04:56.920 --> 0:04:58.160 They're probably like, yeah, I got this. 0:04:58.279 --> 0:05:02.480 Well, it does help to put things into context. Yeah, exactly, 0:05:03.440 --> 0:05:04.760 all right, a little more on flying. 0:05:05.120 --> 0:05:07.200 I don't know, no, I don't know, no, no, no, sorry, 0:05:07.440 --> 0:05:08.720 I can talk about flying all day. 0:05:08.800 --> 0:05:09.680 So yeah, so good. 0:05:09.800 --> 0:05:11.359 Yeah, but you know it is. 0:05:11.480 --> 0:05:13.640 But it is actually interesting though, what you've done at 0:05:13.640 --> 0:05:16.560 Amazon in terms of building out that logistics network. It 0:05:16.720 --> 0:05:18.560 like used to be a unique thing to sort of, 0:05:18.640 --> 0:05:21.520 you know, get to an airport and see a prime airy. Yeahan, 0:05:22.400 --> 0:05:24.880 but what a little over a decade ago the team 0:05:24.920 --> 0:05:27.680 over at Amazon started building out its own fleet. I 0:05:27.680 --> 0:05:29.480 think you worked with Atlas Air Is that right? 0:05:30.000 --> 0:05:30.960 That was one of our carriers. 0:05:31.120 --> 0:05:34.440 Yes, And now what's the relationship now is it? Does 0:05:34.480 --> 0:05:37.280 Amazon own its own planes? Does it contract out its planes? 0:05:37.320 --> 0:05:37.880 How does that work? 0:05:37.920 --> 0:05:40.440 Well, we have a combination of we own some aircraft 0:05:40.440 --> 0:05:42.960 and we lease out other aircraft, but they're all operated 0:05:43.000 --> 0:05:46.520 on our behalf by air carriers. So the pilots aren't 0:05:46.520 --> 0:05:49.680 actually Amazon employees, but they fly our branded aircraft. But 0:05:49.720 --> 0:05:51.839 going back to your point about you know, seeing a 0:05:51.880 --> 0:05:54.120 primary aircraft is kind of a unique thing. I think 0:05:54.160 --> 0:05:56.640 back to when I joined Amazon at twenty eleven, our 0:05:56.680 --> 0:06:00.080 operations basically ended at the dock door of our fulfillment centers, 0:06:00.480 --> 0:06:04.040 and so over time, especially in twenty thirteen, we recognize 0:06:04.080 --> 0:06:05.719 in order to keep up with our own growth, we 0:06:05.760 --> 0:06:09.040 really had to start build building out our mile last 0:06:09.040 --> 0:06:12.520 mile transportation network. So it wasn't long after twenty thirteen 0:06:12.640 --> 0:06:16.200 that you started seeing branded trailers out on our interstates, 0:06:16.279 --> 0:06:19.000 you started seeing branded final mile delivery vehicles out on 0:06:19.040 --> 0:06:22.000 our roads. We built out sort centers, delivery stations, and 0:06:22.040 --> 0:06:25.279 you started seeing branded aircraft out there at various airports 0:06:25.320 --> 0:06:28.120 throughout the country, including JFK here as well, not too 0:06:28.160 --> 0:06:28.720 far from us. 0:06:28.760 --> 0:06:31.160 So does that just continue in terms of the build out, 0:06:31.240 --> 0:06:33.599 Like I'm curious, what's the next iteration or next stage 0:06:33.600 --> 0:06:33.840 of that. 0:06:34.400 --> 0:06:39.560 Well, we worked to also make for an efficient operation 0:06:39.680 --> 0:06:41.920 as well. So I think about something that we as 0:06:41.920 --> 0:06:44.559 a network have done differently this year as we had 0:06:44.720 --> 0:06:48.160 versus years past, and we've worked to regionalize our network. 0:06:48.360 --> 0:06:52.400 And I'm talking holistically, not specific to air but if 0:06:52.440 --> 0:06:55.800 I think about if customers here in New York City 0:06:55.839 --> 0:06:59.239 and places in order over seventy six percent of customer 0:06:59.320 --> 0:07:02.360 orders or fiel fulfilled within region, which means within a 0:07:02.360 --> 0:07:05.040 couple hundred miles of each other, and what that allows for, 0:07:05.160 --> 0:07:09.159 is it means fewer touches, which means less on transportation costs. 0:07:09.320 --> 0:07:11.440 We work to keep those prizes low for our customers. 0:07:11.760 --> 0:07:14.080 And how we've done that is basically, we're just more 0:07:14.120 --> 0:07:17.040 sophisticated with the placement of our most common and most 0:07:17.120 --> 0:07:20.760 popular products. So we're a bit smarter in how we 0:07:20.880 --> 0:07:22.240 place that that product. 0:07:22.520 --> 0:07:24.960 Right Like, if I'm ordering diapers on Amazon, which I 0:07:25.000 --> 0:07:27.120 do all the time, it turns out that they're being 0:07:27.160 --> 0:07:30.200 shipped oftentimes from Staten Island rather than from a few 0:07:30.240 --> 0:07:31.559 years ago, they would actually be showed. 0:07:31.680 --> 0:07:34.120 They could have been Kentucky, they could have been sent. 0:07:34.000 --> 0:07:35.640 From anywhere Pennsylvania. 0:07:35.720 --> 0:07:38.600 We're working hard to make sure that we're getting them 0:07:38.600 --> 0:07:40.600 closer to our customers. 0:07:40.640 --> 0:07:45.360 So building out that kind of localized distribution network makes 0:07:45.360 --> 0:07:48.840 complete sense, right in terms of time, I'm assuming money 0:07:48.920 --> 0:07:51.760 saved and access right like, it just makes sense. 0:07:51.680 --> 0:07:54.880 Yes, like shorter transportation distances, so that reduces the cost 0:07:54.960 --> 0:07:56.880 or reduces the number of touches that need to be 0:07:56.920 --> 0:07:59.200 placed on a package to process. And of course we 0:07:59.280 --> 0:08:01.800 still have some nique items, so not every item is 0:08:01.840 --> 0:08:05.200 located near every customer. So that's why we still have 0:08:05.240 --> 0:08:08.120 an air air network to ensure that two day delivery, 0:08:08.160 --> 0:08:11.240 especially if there's something very unique, maybe located in California, 0:08:11.280 --> 0:08:12.480 and we want to get it to you within two 0:08:12.520 --> 0:08:13.360 days here in New York. 0:08:13.440 --> 0:08:16.240 I know we've ten, We're gonna have another chunk of time. 0:08:16.400 --> 0:08:20.160 Are people opening up and saying, yeah, I'm okay with 0:08:20.160 --> 0:08:21.800 the two day delivery. It's not like I have to 0:08:21.800 --> 0:08:24.320 have it this afternoon anymore. Are you seeing increasingly people 0:08:24.400 --> 0:08:26.640 do that? Like I know in my household, we now 0:08:26.640 --> 0:08:29.600 are maybe starting a bucket and maybe letting the week 0:08:29.640 --> 0:08:32.160 go or even a couple of weeks before we kind 0:08:32.160 --> 0:08:34.200 of hit the buy button and so on and so forth. 0:08:34.240 --> 0:08:36.079 It's not like everybody's like, I gotta have this now. 0:08:36.200 --> 0:08:37.880 Everybody ten multiple. 0:08:37.640 --> 0:08:39.280 Orders unless it's unless it's. 0:08:39.400 --> 0:08:41.440 Which happens, which you gotta do? Are you running around 0:08:41.440 --> 0:08:43.240 the corner and pick them by? But are you thirty 0:08:43.240 --> 0:08:44.760 seconds and then we'll come back and talk more. Are 0:08:44.760 --> 0:08:46.959 you increasingly seeing people comfortable with like waiting? 0:08:47.320 --> 0:08:50.079 It is such a personal preference, and that's why when 0:08:50.120 --> 0:08:53.480 a customer checks out, they have multiple options. You probably 0:08:53.559 --> 0:08:55.959 noticed that way. Yeah, So if you would like it 0:08:56.120 --> 0:08:57.959 next day, and that's an option, get it next day. 0:08:58.000 --> 0:09:00.720 Sometimes you'll see order within the next two hours and 0:09:00.760 --> 0:09:03.920 you'll get up by four pm this afternoon. Sometimes it 0:09:04.000 --> 0:09:06.240 might be a two day delivery, or for folks that 0:09:06.280 --> 0:09:09.400 do want to consolidate their orders, they can specify the 0:09:09.480 --> 0:09:12.640 day of delivery and we work to consolidate into one shipment, which. 0:09:12.440 --> 0:09:13.680 Is a good thing for the environment. 0:09:13.720 --> 0:09:14.880 Everybody just gonna. 0:09:14.640 --> 0:09:17.079 Say, let's get right back to Sarah Rhodes. She's vice 0:09:17.080 --> 0:09:20.000 president of Global Operations at Amazon. Yes, it includes all 0:09:20.000 --> 0:09:22.880 of robotics, AI and general innovation happening when it comes 0:09:22.920 --> 0:09:25.240 to fulfillment centers and delivery at Amazon. We're going to 0:09:25.280 --> 0:09:27.040 talk about Cyber Monday in just a minute. We have 0:09:27.320 --> 0:09:29.240 a lot of time with you, so I want to 0:09:29.240 --> 0:09:31.080 talk a little bit about the next stage of innovation 0:09:31.160 --> 0:09:33.480 and how you're thinking about delivery, because you talked about 0:09:33.600 --> 0:09:35.839 just this incredible build up that's happened over the past 0:09:35.880 --> 0:09:40.360 twenty years at Amazon, when it comes to aviation, when 0:09:40.400 --> 0:09:43.000 it comes to last mile, when it comes to your 0:09:43.000 --> 0:09:44.760 own brand. I mean, we see we have rivians all 0:09:44.800 --> 0:09:47.840 over our neighborhoods delivering Amazon packages in addition to the 0:09:47.880 --> 0:09:50.880 Dodge rams, but it seems like more rivians. Now, what's 0:09:50.920 --> 0:09:53.520 the next area of innovation, what makes it more efficient? 0:09:53.679 --> 0:09:55.800 Oh well, actually, speaking of Rivian, we just announced last 0:09:55.840 --> 0:09:59.080 week we have over twenty thousand electric Rivian vehicles on 0:09:59.080 --> 0:10:02.120 the road. When we think about sustainability and the efforts 0:10:02.160 --> 0:10:04.200 that we're leaning into there, we're continued to invest and 0:10:04.280 --> 0:10:07.760 lean in on the electric vehicle technology. So if I 0:10:07.800 --> 0:10:11.760 think about innovation, to answer your question specifically, I think 0:10:11.760 --> 0:10:14.560 about the innovation that we're doing on behalf of our 0:10:14.559 --> 0:10:17.880 customers and to also help our customers with their shopping experience. 0:10:18.360 --> 0:10:21.560 So we have a new AI power tool called Rufus 0:10:21.679 --> 0:10:24.960 on our storefront and so people can use it to 0:10:25.720 --> 0:10:28.840 maybe get more information about a certain product, or maybe 0:10:28.840 --> 0:10:31.480 they need some help with some sizing, or maybe like me, 0:10:31.600 --> 0:10:34.440 I need some gift ideas for my nephew, whatever the 0:10:34.559 --> 0:10:36.840 case may be, they can use that tool to help 0:10:36.880 --> 0:10:41.000 them out. And so that's really exciting to lean into 0:10:41.040 --> 0:10:43.400 that and there's more to come in that space. And 0:10:43.440 --> 0:10:47.080 we're also leaning in on AI within our operations as well. 0:10:47.240 --> 0:10:50.360 So we have a tool, for example, that our employees 0:10:50.400 --> 0:10:54.920 can use called Dragonfly, and from the palm of our employees' hands, 0:10:55.000 --> 0:10:58.880 they can enter any kind of safety suggestion, operational suggestion 0:10:59.480 --> 0:11:02.480 and it goes directly to their manager for action. And 0:11:02.480 --> 0:11:04.640 that's just one of many tools in the toolkit that 0:11:04.640 --> 0:11:07.280 our employees can use. Are they using it? Oh? Yes, 0:11:07.360 --> 0:11:09.920 And it's awesome and the amount of feedback that we 0:11:10.000 --> 0:11:12.400 get and the ideas that are generated. And the really 0:11:12.400 --> 0:11:16.240 cool thing is one suggestion from an employee may not 0:11:16.440 --> 0:11:19.520 just be for that particular site, but it could impact 0:11:19.960 --> 0:11:24.000 operations across the network. So we're seeing some really great 0:11:24.000 --> 0:11:27.280 ideas coming from our frontline workforce, which is which is 0:11:27.320 --> 0:11:31.240 awesome and it's a great tool that is one of many, 0:11:31.320 --> 0:11:34.040 Like I mentioned the toolkit for us to maintain that 0:11:34.080 --> 0:11:35.920 direct dialogue with our teams. 0:11:36.160 --> 0:11:37.440 Where else do you think of AI? 0:11:37.600 --> 0:11:37.680 Like? 0:11:37.720 --> 0:11:40.160 I do feel like we're scratching the surface and just 0:11:40.160 --> 0:11:41.800 beginning to play around with it, either on. 0:11:41.800 --> 0:11:43.120 A corporate or personal level. 0:11:43.320 --> 0:11:46.720 Right, But it's it's just I think we're all trying 0:11:46.760 --> 0:11:49.199 to figure out how do you think about? Okay, this 0:11:49.240 --> 0:11:50.880 is how AI is going to change. I mean, you 0:11:50.880 --> 0:11:53.920 guys are such a massive world globally, Like, how do 0:11:53.960 --> 0:11:56.959 you think about all? Right, I see AI doing this 0:11:57.040 --> 0:11:58.360 for us at Amazon someday. 0:11:58.679 --> 0:12:00.800 Well, we have a bit of a glimpse into the 0:12:00.840 --> 0:12:04.200 future of AI, automation and robotics with the site that 0:12:04.240 --> 0:12:08.120 we just launched in Streepoint Shreeport, Louisiana. We call it 0:12:08.120 --> 0:12:10.920 Shive one for short, and I was just down there 0:12:11.000 --> 0:12:13.199 a couple of weeks ago, and it is the most 0:12:13.280 --> 0:12:18.559 automated site we have anywhere in the world. We've incorporated robotics, 0:12:18.720 --> 0:12:23.240 AI automation. We as Amazon, have been using AI and 0:12:23.280 --> 0:12:27.760 machine learning for several years actually, but it's now really 0:12:27.880 --> 0:12:30.760 kind of coming all together. And so when I think 0:12:30.800 --> 0:12:33.559 about the site in Shreport that we launched, we now 0:12:33.600 --> 0:12:38.240 have autonomous robotic drives that move carts full of packages 0:12:38.280 --> 0:12:41.280 from one point to Another's. 0:12:40.240 --> 0:12:42.240 That different from Akiva robot like because you guys have 0:12:42.280 --> 0:12:42.720 been doing. 0:12:42.559 --> 0:12:46.280 This for you. Yeah, the Kiva robots, the traditional robotic 0:12:46.360 --> 0:12:49.480 drives that we use, they run off of basically a grid, 0:12:50.040 --> 0:12:55.720 So think of they are basically are guided by technology 0:12:55.760 --> 0:12:58.120 that uses what's called fiducials. So think of it like 0:12:58.200 --> 0:13:00.440 a two D barcode on the floor and it's going 0:13:00.480 --> 0:13:03.280 from one point to another. Whereas Proteus is autonomous, it 0:13:03.280 --> 0:13:06.360 doesn't rely on a grid. It knows it needs to 0:13:06.400 --> 0:13:09.040 go from one station all the way to a doctor 0:13:09.240 --> 0:13:12.439 without any type of grid, but there's a lot of 0:13:12.480 --> 0:13:17.160 safety features involved, so it goes yes. So when it 0:13:17.200 --> 0:13:19.720 senses a person, it'll make some noise. It has a 0:13:19.960 --> 0:13:23.040 looks like a smiley face, and so it looks like 0:13:23.080 --> 0:13:24.840 it can kind of see the person and it smiles 0:13:24.880 --> 0:13:28.640 and helps ensure that you know, it stops and yields 0:13:28.640 --> 0:13:32.040 to people. And we actually use similar technology on our 0:13:32.080 --> 0:13:35.520 traditional robotics floors, our texts that help to maintain the 0:13:35.640 --> 0:13:38.600 robotic drives. They actually have a vest that they put 0:13:38.600 --> 0:13:41.080 on when they go out onto the robotic floor and 0:13:41.360 --> 0:13:44.920 it stops all robotic drives within six feet. So it's 0:13:44.960 --> 0:13:48.120 pretty cool watching that because it looks like the person 0:13:48.200 --> 0:13:51.520 has a superpower stopping those robots, which is which is 0:13:51.559 --> 0:13:55.720 a huge safety a great safety feature that is definitely 0:13:55.760 --> 0:13:57.840 you know, necessary to help ensure that we're keeping that 0:13:58.080 --> 0:13:58.760 area safe. 0:13:58.880 --> 0:14:01.920 What about when it comes to robotics and automation in 0:14:01.960 --> 0:14:05.320 the picking process, where you still have people actually you know, 0:14:05.400 --> 0:14:07.520 going and fulfilling those orders putting them in boxes. 0:14:07.679 --> 0:14:12.600 Right, So we've incorporated robotic arms into some of our 0:14:12.640 --> 0:14:14.640 processes as well. So if we think of some of 0:14:14.640 --> 0:14:18.319 the repetitive motion we're working to engineer that out because 0:14:18.360 --> 0:14:21.560 the repetitive motion can lead to ergonomic injuries, which is 0:14:22.080 --> 0:14:24.920 one of it is the most common injury type across 0:14:24.960 --> 0:14:27.040 the industry, So not just at Amazon, but think of 0:14:27.080 --> 0:14:30.080 warehousing and logistics in general. So if we can engineer 0:14:30.120 --> 0:14:33.040 that out, we're doing that. However, the site and Shreeport, 0:14:33.160 --> 0:14:36.840 we still employed twenty five hundred employees, but thirty percent 0:14:36.920 --> 0:14:40.440 of those jobs are more technical than the jobs that 0:14:40.480 --> 0:14:44.240 we've had traditionally, meaning what so think of You know, 0:14:44.280 --> 0:14:48.680 we need folks to maintain our robotics and automation, so 0:14:48.880 --> 0:14:52.320 it takes some technical certifications in order to do that, 0:14:52.720 --> 0:14:55.760 and our teams can gain those certifications through a program 0:14:55.800 --> 0:14:59.760 called Career Choice at Amazon and so at no cost 0:14:59.800 --> 0:15:03.400 work employees. So it's a great benefit that's available. 0:15:03.520 --> 0:15:05.080 The question that has to be asked when if we're 0:15:05.080 --> 0:15:08.520 talking about AI and robotics kind of merging together. We 0:15:08.520 --> 0:15:12.240 were out on the West Coast at an investment event 0:15:12.440 --> 0:15:15.120 and I was involved in a panel that was about AI, 0:15:15.240 --> 0:15:17.360 and the question that everybody says was a, I going 0:15:17.400 --> 0:15:20.480 to take my job, So help me understand. There's got 0:15:20.480 --> 0:15:23.280 to be efficiencies when you're dealing with robotics and so 0:15:23.320 --> 0:15:26.040 on and so forth. But what is the thinking about 0:15:26.440 --> 0:15:27.800 will it take some jobs? 0:15:27.880 --> 0:15:28.960 Will it create some jobs? 0:15:28.960 --> 0:15:30.560 Give us your insight on that. 0:15:31.000 --> 0:15:34.280 We call it a collaborative environment, and there's a balance 0:15:34.320 --> 0:15:36.320 for sure. But again, when I go back to when 0:15:36.360 --> 0:15:39.760 I started in twenty eleven, we didn't have robotic drives 0:15:40.280 --> 0:15:42.720 or robots in general across our network, and we had 0:15:42.720 --> 0:15:46.760 fifty thousand employees total across the globe. Fast forward to 0:15:47.600 --> 0:15:50.520 twenty twenty four and we have over a million employees 0:15:50.560 --> 0:15:55.440 across the globe, and we've incorporated robotics in our sites 0:15:55.480 --> 0:15:58.600 across the US and in other countries including Europe. I 0:15:58.680 --> 0:16:00.600 was just in Japan a few weeks ago. We use 0:16:00.680 --> 0:16:05.320 robotics in Japan, and we're I look at this holiday season, 0:16:05.360 --> 0:16:07.960 we're hiring two hundred and fifty thousand employees. So we 0:16:08.000 --> 0:16:10.640 have to said the same as last year. It's on 0:16:10.720 --> 0:16:13.440 park with what we hire too as we go into 0:16:13.440 --> 0:16:16.360 the holiday season, and we continue that through throughout the year. 0:16:16.400 --> 0:16:19.200 And so there are plenty of jobs available to include 0:16:19.200 --> 0:16:21.800 more technical jobs for folks that are interested in that 0:16:21.840 --> 0:16:23.680 more technical part of the work experience. 0:16:23.880 --> 0:16:27.720 Do you think, given technological upgrades that we've seen in 0:16:27.760 --> 0:16:31.040 recent years, we've sort of peaked when it comes to 0:16:31.440 --> 0:16:36.200 humans in fulfillment center jobs. Like you know, if we 0:16:36.240 --> 0:16:39.280 think about it from an efficiency perspective, you don't need 0:16:39.320 --> 0:16:42.000 as many people now, and even next year, you'll need 0:16:42.040 --> 0:16:44.120 fewer and fewer people. Not that they're taking their jobs 0:16:44.120 --> 0:16:47.040 by any means, but efficiency. 0:16:47.360 --> 0:16:49.960 When I think of efficiencies, I actually think more of 0:16:50.000 --> 0:16:53.160 our logistics network as a whole. So we talked earlier 0:16:53.200 --> 0:16:56.960 about regionalization. That's really where we're seeing the efficiencies of 0:16:57.040 --> 0:17:00.480 removing additional touches. That doesn't mean removing people, it just 0:17:00.960 --> 0:17:04.040 removes some of the inefficiencies that we have in our network. 0:17:04.080 --> 0:17:07.920 And we're continued to still grow. We're launching buildings, new 0:17:07.960 --> 0:17:12.639 operations just about every month, multiple per month in some cases. 0:17:12.680 --> 0:17:15.240 In fact, this year, we just launched our first Amazon 0:17:15.280 --> 0:17:19.359 operation in Hawaii and it complements the air operation that 0:17:19.400 --> 0:17:21.680 we have there as well, So we have an Amazon 0:17:21.720 --> 0:17:24.679 delivery station outside of Honolu, which is pretty exciting. 0:17:24.760 --> 0:17:26.680 Any update on drones, it's been more than ten years 0:17:26.680 --> 0:17:30.680 since Jeff Bezos was on sixty minutes Sunday after Thanksgiving 0:17:30.720 --> 0:17:33.520 Monday before Cyber Monday. I remember covering that. It was 0:17:33.640 --> 0:17:36.639 great marketing, by the way, but still I haven't never 0:17:36.680 --> 0:17:38.120 had anything delivered with a drone. 0:17:38.240 --> 0:17:41.760 Yeah, we're continuing to invest in that program, and I 0:17:41.800 --> 0:17:44.920 am excited to say that we are actually operating drones 0:17:45.280 --> 0:17:49.000 for customer fulfillment outside of Phoenix Tallis in Arizona. 0:17:48.560 --> 0:17:50.119 To be Is it scalable? 0:17:50.800 --> 0:17:52.560 I think over time it will be. You know, there's 0:17:52.600 --> 0:17:53.800 obviously a lot of regulations. 0:17:53.840 --> 0:17:56.440 So Stam's going to get his diapers in Brooklyn High 0:17:56.440 --> 0:17:57.840 a drone from Amazon. 0:17:58.359 --> 0:18:01.080 It may take some time, but I'm optimistic. 0:18:01.760 --> 0:18:06.320 Actually, my daughter's diapers, you were going to go there. 0:18:06.359 --> 0:18:06.920 I take it back. 0:18:07.640 --> 0:18:08.360 I take it back. 0:18:08.400 --> 0:18:13.200 It's your daughter's diapers now. But I do wonder, like Ken, 0:18:13.359 --> 0:18:15.280 is it scalable in a city that's so dense. 0:18:16.840 --> 0:18:21.800 Yeah, we're continuing to uh iterate on the drone design itself. 0:18:21.840 --> 0:18:25.160 It's all design in house. We're working with the regulators, 0:18:25.200 --> 0:18:29.240 of course, because drone delivery in general is a relatively 0:18:29.280 --> 0:18:32.840 new space and so there's been a lot of innovation, 0:18:33.200 --> 0:18:37.359 invention and iteration over the last several years. But it's 0:18:37.400 --> 0:18:38.840 exciting and I'm excited about it. 0:18:38.960 --> 0:18:43.640 Okay, Cyber Monday, we promised we promised. How are things 0:18:43.680 --> 0:18:44.240 looking so far? 0:18:44.960 --> 0:18:48.119 They're they're looking strong. We had a record breaking Black Friday. 0:18:48.160 --> 0:18:50.680 Of course, Cyber Monday isn't over yet. In fact, deals 0:18:50.720 --> 0:18:53.160 are still dropping. But I was just at a fulfillment 0:18:53.200 --> 0:18:57.280 center in New Jersey this morning and uh, despite the 0:18:57.320 --> 0:19:01.000 amount of volume, they're processing hundreds of the packages at 0:19:01.040 --> 0:19:04.480 one site. It's very calm organized. We spend the entire 0:19:04.560 --> 0:19:08.639