June 18, 2016

WINNING THE WAR ON WAGES:

Amazon is just beginning to use robots in its warehouses and they're already making a huge difference (Ananya Bhattacharya, June 17, 2016, Quartz)

The "click to ship" cycle used to be around 60-75 minutes when employees had manually to sift through the stacks, pick the product, pack it, and ship it. Now, robots handle the same job in 15 minutes, according to a Deutsche Bank note published Tuesday (June 14) based on Amazon's metrics.

These robots are not only more efficient but they also take up less space than their human counterparts. That means warehouse design can eventually be modified to have more shelf space and less wide aisles. At the end of the third quarter of 2015, Amazon was using 30,000 Kiva robots across 13 warehouses. Each Kiva-equipped warehouse can hold 50% more inventory per square foot than centers without robots. In turn, the company's operating costs have been sliced by 20%--or almost $22 million--per warehouse.

If Kiva robots are dispatched to the rest of the 110 Amazon warehouses, the tech giant could save almost $2.5 billion, according to Deutsche Bank. 

Posted by at June 18, 2016 9:30 AM

  

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