What´s behind your Internet shopping?

When you are shopping online, for sure you are not thinking about the massive distribution network required to bring you that special product you are buying. Well, it is a huge work, and companies like Amazon have to invest heavily to keep competitive in this sector. (Rapacki. E, 2014)

In march 2012 Amazon acquire Kiva Systems (an innovative robotic order picking system) for $ 775 million in cash (Gilmore, 2013), from that moment, Amazon warehouses has hundreds of “autonomous mobile robots” scurry around the floor and delivered entire shelves to stationary pick stations, where laser scanners and indicator lights assist people in processing orders(Mills. M, 2012).

How does this acquisition improve Amazon productivity?. “It´s seen that this new technology triples productivity while simultaneously improving the seed, accuracy and flexibility of the operation” (Kiva System, 2014). Frist of all, working with robots is much more efficient than sending people through warehouses to retrieve the goods and it also improved picking time. In addition, it requires less material handling equipment (such as pallet jacks, forklifts, conveyors) than traditional warehouses. Here you can see a video that will help you to understand what I´m talking about.

What we are observing is the migration of robots out of the manufacturing sector into the supply chain where we handle and deliver stuff, leading many people to assume “robots kill jobs”. What do you think about this?

One thought on “What´s behind your Internet shopping?”

  1. Reblogged this on The blog of Logistics at MGEPS at UPV and commented:

    I really like that post! It’s very interesting what complex processes are connected with one simple buying process online. By using different kinds of machines or robots a huge amount of money can be saved but of course this represents danger of jobs. I’d like to add a very crazy project from Amazon concerning the future delivery. Amazon thought about delivering by drones. By the use of drones the desired product could reach the customer within about 30 minutes. Products with a weight of 2,5 kilogram could be delivered over 16 kilometers. This drone projects just seems crazy at the moment and you can’t imagine that in reality. But at the moment Amazon is even testing some small prototypes. I am very excited how this project will develop in the future…
    (Compare: http://www.spiegel.de/wirtschaft/unternehmen/amazon-jeff-bezos-will-mini-drohnen-einsetzen-a-936678.html)

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