Amazon makes algorithms decide on purchasing and inventory management

Webwinkel Amazon has in recent times more and more tasks of employees who decide on the price and quantity of products to be purchased and inventory management transferred to algorithms. They often proved correct in the prediction of customers’ buying behavior.

Amazon’s algorithms determine in advance how many customers buy approximately a certain book or piece of electronics and then automatically submit a proposal to suppliers for deals, reports Bloomberg . The initiative started under the name ‘hands off the wheel’, where sales managers could easily undo the decisions of the algorithm.
This was followed by a phase in which employees had to substantiate such a decision and the entire process has now been automated. The people, often with a salary of one million dollars or more, are now gone, the financial news agency claims. Also the conclusion of collaborations with brands on so-called ‘Lightning Deals’, fast offers with limited stock, has been done via an algorithm for two years.
In addition to the relationships with brands and suppliers, the algorithms also manage inventory management and keep track of how much of what product Amazon has. According to employees, this works more accurately and faster.
Various employees of Amazon confirm the information against Bloomberg. The web shop itself does not deny it and says that it has been working for years on ‘standardizing tools for brands’ that are in the webshop. The company emphasizes that it has 16,000 vacancies for people worldwide.