Transforming E-Commerce from the Inside Out – Exclusive Interview with Igor Kiselev

Global e-commerce sales have reached trillions of dollars and continue to grow each year. Along with that growth come mounting logistical challenges, rising delivery costs, increased risks of shipment delays, and a decline in overall customer experience.

As one of the global leaders in e-commerce, Amazon has achieved remarkable success in optimizing courier routes and improving multiple key delivery metrics. One of its main advantages lies in an innovative last-mile route optimization system implemented not only in the United States but also across many of the company’s international markets. The author of this approach is Igor Kiselev, a program manager at Amazon, and the methodology, which has already delivered outstanding results within the company, has the potential to become a new industry gold standard.

Igor Kiselev, Global Supply Chain and Logistics Leader

In this exclusive Q&A, the Brainz Magazine Editorial Team speaks with Igor Kiselev, Global Supply Chain and Logistics Leader at Amazon, about his innovative methodology for optimizing last-mile delivery, a system that’s redefining efficiency across global e-commerce operations.

Igor, your methodology has a number of unique features. What drives its remarkable efficiency?

At the core of my approach is a set of initiatives and rules that streamline delivery processes, coordinate warehouse and courier operations, and structure route planning. This methodology enhances efficiency on the so-called “last mile,” the stage of delivering goods from the warehouse to the customer. All logistics companies and e-commerce operators generally base their route planning on fundamental parameters such as customer location and route distances. What sets my methodology apart is that it also takes delivery complexity into account, how much time and resources each order requires. For us, it is crucial to improve the experience of both end customers and couriers. Implementing this approach has improved the courier experience by more than 390 basis points on certain types of routes.

How was the solution you proposed implemented?

The methodology takes multiple factors into account when optimizing routes. I reviewed not only the approach to determining the path from warehouse to customer but also the entire delivery planning system, considering navigation challenges and the courier experience.

For example, if for some reason, couriers are reluctant to deliver to certain areas, we work to understand the situation and identify the root causes of the issues. By accounting for all these factors, we design routes that balance travel time with the number of deliveries.

Another impressive achievement of your methodology is a 70% reduction in inefficient routes. How was this accomplished?

There are numerous reasons for inefficient routes, including poorly optimized routing, misconfigured last-mile logistics processes, and ineffective use of labor. The methodology addresses these issues, which account for roughly 70% of such problematic routes. As I mentioned earlier, the experience of both customers and couriers is extremely important to us. For instance, when a driver picks up a package and sees that it needs to be delivered to the other side of the city, they know it will take a lot of time, incur high fuel costs, and naturally feel dissatisfied with the route. At the same time, the customer waits longer for their package and is also unhappy. As I noted, my methodology minimizes such routes. This mechanism saves millions of dollars annually across various last-mile expenses.

Your methodology has been implemented almost seamlessly, and successful delivery rates have increased by more than 300 basis points. How did you achieve this?

Step by step. Amazon, like any high-tech company serving a mass market, cannot simply pause operations to roll out a new innovation. That’s why all processes are introduced as smoothly as possible. Some initiatives from the methodology are already in place and showing success, while others are undergoing pilot testing with positive results. It’s crucial for us that couriers continue their work without disruptions and that customers keep receiving their orders on time.

The phased implementation took about a year, but the methodology continues to evolve and improve. This is a natural process that, I believe, will never stop.

Could the methodology you developed become the new standard for last-mile e-commerce delivery?

Yes. Amazon is a massive company with a significant share of the e-commerce market in the U.S. and worldwide. Having proven its effectiveness within the company, this methodology is already having a substantial impact on last-mile e-commerce delivery overall, as it largely shapes the experience of millions of customers and thousands of couriers who deliver packages every day. At the same time, it can be said that the approach is applicable to the logistics sector more broadly.

What prospects do you see for last-mile logistics in e-commerce? And what does the future hold for your methodology?

The e-commerce world is evolving rapidly, customers expect fast delivery, a wide selection of products, and a seamless platform experience. Implementing effective solutions and strategies is crucial, as ultimately everyone benefits, the company, customers who receive their orders on time, and, importantly, the couriers.

We don’t aim to overload drivers; on the contrary, the purpose of the methodology is to reduce workload while increasing profitability. We want to give people the opportunity to earn income while maintaining a flexible schedule that suits them. Our experience shows that courier satisfaction has improved, people are eager to continue working with the company, can forecast their earnings based on workload, and gain a sense of stability and confidence in the days ahead.

I will continue to refine the methodology and monitor the results of its implementation. The e-commerce market may face new challenges and evolving customer needs, which require constant strategy improvement and a reassessment of previously established paradigms.

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