How Amazon Divides The US Into 8 Regions & The Names They Use – Brilliant Maps

The
map
above
shows
the
8
regional
networks
Amazon
uses
in
the
US
to
deliver
your
order
as
quickly
as
possible.
More
about
it
below,
or
you
can

read
the
full
article
here.

In
2020,
Amazon’s
U.S.
retail
fulfillment
network
experienced
rapid
growth,
prompting
an
“operational
pivot”to
handle
soaring
demand.

The
effort,
known
as

regionalization,
reorganized
the
company’s
national
network
of
fulfillment
centers
(FCs),
sorting
centers,
and
delivery
hubs
into

eight
largely
self-sufficient
regions.

This
was
done
to
ensure
faster
deliveries,
reduced
transportation
costs,
and
increased
network
efficiency,
while
still
providing
nationwide
coverage.

Focusing
on
the
Map:
Eight
Regional
Networks

The

map
of
the
United
States
above
illustrates
these

eight
newly
created
regions.

Key
takeaways
from
the
map:

• 
  Reduced
  Complexity:
  Instead
  of
  each
  FC
  shipping
  to
  customers
  nationwide,
  FCs
  now
  focus
  on
  serving
  customers
  in
  their
  designated
  region.
• 
  Closer
  Inventory:
  By
  having
  the
  needed
  products
  readily
  available
  within
  each
  region,
  customer
  orders
  travel
  
  shorter
  distances,
  speeding
  up
  delivery
  times.
• 
  Eight
  Regions,
  One
  Network:
  Even
  though
  the
  country
  is
  subdivided,
  these
  regions
  still
  connect
  cohesively,
  maintaining
  national
  coverage.

The
Challenge
and
Rationale

Previously,
Amazon’s
approach
relied
on
sending
products
from
wherever
they
were
in
stock,
sometimes
resulting
in
sprawling,
cross-country
shipments.

With
the
network
growing
rapidly,
this
strategy
risked
becoming
unwieldy
and
costly,
especially
under
surging
pandemic
demand.

The
“distant
FC”
problem
meant
more
trucks,
more
miles,
and
longer
delivery
times.

Why
Eight
Regions?

Amazon’s
research
scientists
and
planning
teams
used

state-of-the-art
optimization
models
to
simulate
various
regional
configurations.

They
balanced:

• 
  Delivery
  Speed:
  Smaller
  regions
  mean
  faster
  delivery,
  but
  each
  region
  needs
  enough
  inventory
  breadth
  to
  meet
  demand.
• 
  Transport
  Costs:
  More
  regions
  reduce
  cross-country
  routes
  but
  risk
  requiring
  extra
  movement
  if
  certain
  products
  aren’t
  kept
  in
  the
  right
  places.
• 
  Inventory
  Breadth:
  Customers
  expect
  access
  to
  a
  wide
  range
  of
  products—each
  region
  must
  carry
  a
  significant
  portion
  of
  Amazon’s
  catalog.

Modeling
revealed
that

eight
regions
struck
the
best
balance
between
shorter
shipping
distances
and
maintaining
high
in-region
product
availability.

Key
Benefits
of
Regionalization

• 
  Speedier
  Deliveries:
  With
  most
  orders
  now
  fulfilled
  locally,
  packages
  travel
  shorter
  distances,
  boosting
  delivery
  speed.
• 
  Higher
  Truck
  Fill
  Rates:
  Fewer,
  more
  direct
  routes
  mean
  trucks
  carry
  more
  packages
  on
  each
  trip,
  improving
  efficiency.
• 
  Simplified
  Operations:
  Reducing
  the
  number
  of
  cross-country
  trucking
  lanes
  makes
  it
  easier
  to
  plan,
  manage,
  and
  optimize
  the
  network.
• 
  Immediate
  Impact:
  Overnight
  switchover
  in
  early
  2023
  led
  to
  a
  jump
  in
  local
  fulfillment
  (from
  62%
  to
  76%)
  and
  faster
  shipping
  times.

So
all
very
cool,
just
not
sure
about
the
names.
Is
Michigan
more
Midwest
than
Great
Lakes?
Or
Northern
California
really
part
of
the
South
West?

In
any
case
if
it
gets
me
my
stuff
faster
I’m
all
for
it,
and
really
the
naming
isn’t
any
worse

than
this.

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Author: Brilliant Maps