Visual Sort Marker Digitization in Sort Center Operations

Abstract

Companies worldwide recognize the importance of sustainability and are looking for ways to incorporate sustainable practices into their operations. Companies are looking to become more sustainable by reducing their carbon footprint. It can be done through various means, such as investing in renewable energy sources, implementing energy efficiency measures, and reducing the use of non-renewable resources. Another way companies are looking to become more sustainable is by being more responsible in their supply chain, ensuring that their materials and products are ethically and sustainably sourced, for example.

With the growing awareness of the environmental impact of businesses, consumers are increasingly looking for companies that prioritize sustainability. Amazon, the world's largest online retailer, has announced its commitment to becoming more sustainable. This decision addresses the pressing issue of climate change and reduces the company's environmental footprint. By committing to sustainable practices, Amazon can attract and retain customers who value environmentally friendly products and services. In addition, Amazon's investment in sustainable practices can lead to cost savings in the long run.

One of the many sustainable strategies Amazon is working on is the Small Shipping Label (SSL). This initiative aims to reduce the shipping label size and has a potential entitlement of ~$1 billion per year. Smaller labels facilitate the use of smaller shipping boxes, which ultimately reduces the overall amount of packaging materials required. This reduction in packaging materials, in turn, contributes to a decrease in the carbon footprint associated with transportation. Smaller boxes translate as optimized truck space, since more packages can be shipped in a single trip. As a result, the number of trucks or planes required for delivery is reduced, reducing associated fuel consumption and emissions. SSL implementation requires the removal of a physical Visual Sort Marker (VSM) from the package label. One of the critical manual processes in Middle- Mile operations (Sort Slide) currently relies on physical VSMs to inform sortation decision-making at the package level. Amazon is working towards removing physical VSMs while mitigating any risks to Throughput Per Hour (TPH) and Delivery Estimate Accuracy (DEA). Manual dependencies limit inflight shipment replanning to handle events such as missorts, unpredictable weather conditions, truck breakdowns, etc. Elimination of reliance on physical VSMs will provide the ability to decrease packaging waste, allowing for shipping items in packages smaller than the current 4x6 shipping label, bringing savings on packaging and transportation costs, and aligning with The Climate Pledge.

This thesis looks into the operational challenges of implementing sustainable practices by assessing the trade-offs between sustainability vs. productivity. Its objective is to determine the effect of the short-term proposed solution for VSM removal in the Sort Center network. Specifically in the Sort Slide process capacity and utilization. The present analysis suggests that accepting a modestly degraded process rate may be a viable trade-off if it helps an organization achieve its sustainability goals and ensure the long-term viability of its financial growth.