The items listed on Amazon’s websites as ‘Fulfilled by Amazon’ are ones that are supplied out of its own warehouses called ‘Fulfillment centers’. There are about 80 around the world spanning almost all the countries Amazon operates in and has about 65,000 employees working to keep them shipshape.
Amazon has its own logistics arm for delivery. The system that Amazon follows for Warehousing and Logistics is called ‘Chaotic Storage’. The name should not be intuitively interpreted to mean everything about the system is chaotic. It is the same as the term ‘fuzzy logic’ in electronics– it merely implies that the system is fluid and adapts itself to need to make efficient use of space and accessibility.
Under this system products do not have designated spaces based on type, kind or size but are stored and located by a barcode assigned to them at the time they enter the warehouse. The bar-code maps to the shelf and area in the warehouse where a given item is stored and is accessed through the computerized database.
The picture here shows massively proportioned structures, occupying about 1.2 million square feet, that would fit in with Amazon’s plans to launch a service called Prime Air. It would use drones (unmanned Aerial vehicles) called Octocopters to fulfill orders, cutting down lead times for deliveries to 30 minutes. Packages weighing up to 2.3 kgs, covering 86 percent of all of Amazon’s deliveries, would come under this mode of operation. The plans are five years away from execution and would require the American Government’s permission.