Message Font: Serif | Sans-Serif
No. of Recommendations: 0
That video seems to match up with articles such as:

For $775 million Amazon has acquired robot company Kiva Solutions, looking to "improve productivity" in those fulfillment centers we've heard such un-fun things about. Specifically, the little orange bots will bring products to workers, who as of now can walk up to 13 to 15 miles a day hand-picking and delivering items, according to a report from last September. Amazon bought the organization hoping to improve its margins -- a packer working with Kiva bots can fulfill three to four times as many orders per hour, according to Kiva via The Wall Street Journal. But it looks like the tech will also reduce the exhausting walking that Amazon warehouse work now requires.

At the CSCMP Annual Conference in October, Mike Roth, Amazon’s VP of North American Fulfillment Services, gave a speech titled “Supply Chain Technology Powering Earth’s Biggest Selection.” Mike spoke about many items related to Amazon’s strategy, but what interested me the most was the careful planning the company needs to do to support its tremendous growth.

Because Amazon opens so many warehouses — 40 in North America — the company believes in rapid build cycles, which allows it to build capacity as the company needs it. Amazon is challenged by ever growing sales, year-over-year growth of 35 percent, and hockey stick seasonal demand, which is 3X greater than non-seasonal demand. Amazon’s CFO has made it clear that he does not want to pay for unused capacity. Mike showed a photograph of one site that had just broken ground, and another photograph of the completed warehouse five months later. And this was not a small facility — it was 1.2 million square feet with 40 foot high ceilings and four story pick modules complete with automation.

Since a highly-automated warehouse would take months longer to complete, Amazon uses warehouse automation sparingly to preserve scalability. The company has opened four distribution centers this year with many more scheduled to go live in the coming months.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.