Amazing Amazon Bots
By Ron Lunde / December 2016Insights
…it starts with a vision
‘At Amazon Robotics, we are continually reimagining what Now looks like. We see the big picture, imagine a better one, and make the connections that turn complex problems into elegantly simple solutions.’
Re-defining the 21st Century Distribution Experience
SOME INTERESTING FACTS AND 3 FASCINATING VIDEOS
FOR DISTRIBUTION AND LOGISTICS, THE QUESTION HAS ALWAYS BEEN THE SAME: ‘HOW DO WE DEVELOP THE MOST EFFICIENT OPTIMIZATION STRATEGY FOR DISTRIBUTION WAREHOUSE WORKERS TO LOCATE, SELECT AND SHIP PRODUCTS?’
AMAZON REIMAGINED THE SAME QUESTION: ‘WHAT IF THE MOST EFFICIENT OPTIMIZATION STRATEGY WAS FOR PRODUCTS TO COME TO THE WAREHOUSE WORKERS?’
Robots combined with humans = the most optimized strategy
- Reduce inventory retrieval time from 90 minutes to 15 minutes. 83% time reduction.
- Humans pick 110 items per hour. Robots 200 to 400. 82% to 263% productivity improvement.
- Humans lift approx. 50lbs. Robots lift up to 750lbs. 1,300 % weight capacity improvement.
- A Distribution Center worker’s wage is approx. $28,000 per year at $14.00 per hour. Amazon runs two 10 hour shifts which = $56,000 per year for stock pickers. Robot costs about $15,000 and will work both shifts. 73% reduction in costs. Yet, there are still thousands of workers employed at each distribution center.
- Robot warehouses can carry 50% more inventory in the same warehouse space due to a reduction in the dimensions of aisle space required for humans vs. robots.
- In turn, the company’s operating costs have been sliced by 20%—or almost $22 million—per warehouse.
Amazon distribution center in Tampa, Florida
How bots do it…
But bots appreciate the arts too…
*this post first appeared in the blog, Ron Lunde…Potpourri
Contributed by Ron Lunde, Senior Marketing, Advertising Executive & Market Strategy Consultant. Ron held senior management positions in grocery retailing including Supervalu, Grand Union and Price Chopper. He was also a Sr. VP. at the Leo Burnett Advertising agency. Ron is credited with introducing Space and Category Management systems to the industry as well as working with the Price Chopper team to introduce and deploy the first data driven frequent shopper program in the US. He was also a consultant to the Financial Accounting Standards Board in developing the Issues that govern the accounting requirements for all trade promotion and marketing expenditures. Lunde currently serves as a Market Strategy consultant to retailers and CPG brands.