The productivity benefits from Amazon ‘s Kiva robots

An article in Quartz (http://qz.com/709541/amazon-is-just-beginning-to-use-robots-in-its-warehouses-and-theyre-already-making-a-huge-difference/) claims that the “click to ship” time at Amazon has decreased from 60-75 minutes with human operators to 15 minutes using Kiva robots. In addition, with robots, warehouse inventory can increase by 50%, thus decreasing operating costs by 20%. Will all of this efficiency translate into lower prices for consumers or higher profits for Amazon or both? Do you expect similar benefits for other warehousing operations? Is there a benefit to creating focused warehousing robots rather than using general purpose solutions?

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About aviyer2010

Professor
This entry was posted in competitiveness, consumer, Cost, Ecommerce, logistics, Operations Management, productivity, Service Operations, technology, Uncategorized and tagged , , , , . Bookmark the permalink.

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