Amazon Company’s Modern Development of Warehouse Complexes

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The current state of the market dictates its own trends in the field of technical support for companies. In order to keep up with the times, it is necessary to introduce the latest technologies not only in the production process but also in optimizing the subsequent movement of goods, in particular, the development of warehouse complexes. One of the ways of such development is the automation of warehouses, namely the introduction of robots into work. This article discusses the modern development of warehouse complexes using the example of Amazon, which has been actively introducing robots since 2014.

Optimization of the company’s business processes implies the introduction of software and hardware, which is necessarily carried out simultaneously at all levels. The goals of such transformations include the elimination of bureaucratic delays, building effective relationships between all departments, and reducing the total costs. The launch of automation in the operation of the warehouse complex should not only resolve issues related to the field of inventory management but also contribute to positive transformations in related business processes.

In 2014, Amazon began the introduction of robots in the operation of warehouse complexes. In 2012, Amazon acquired Kiva Systems for $775 million (now Amazon Robotics) in order to use their robots in their warehouses. Now Amazon has a staff of more than 100,000 robots around the world, and this is not the limit for the company (Rawat, 2021). Every year they plan to increase the staff of their robots in order to implement them later in all their warehouses. Robotic equipment reduces the labor intensity of work in warehouse complexes and also reduces the number of tax payments for employees. The introduction of robots has allowed Amazon to place shelves closer to each other and thereby increase the capacity of warehouse space, which means reducing the time for searching, subsequent packing, and sending the package to the client.

In the state of Washington, in one of the warehouses, robotic loaders can move goods with parcels weighing up to 1.4 tons. Most devices move around the warehouse on their own. Warehouse workers need to place goods on racks, which are then picked up by robots. After that, the machines move the racks around the warehouse and drive up to another part of the warehouse to form the parcel. Special QR codes placed on the flooring help robots navigate and navigate the warehouse. As planned by Amazon, robots should perform the most monotonous and the same type of tasks. In this way, warehouse employees can perform more intelligent and brain-stimulating work. Thanks to the robots, the fatigue of the working staff have decreased (Rawat, 2021). There has been an increase in efficiency due to the seduction of walking around the warehouse during the work shift.

Some of the employees who were previously engaged in packing rack baskets got training at Amazon. The rest have been given positions at reception stations, where they sort large boxes of goods into baskets (Rey, 2019). Automation did not affect the reduction of jobs in any way but, on the contrary, made it possible to improve the professional level of employees and advance them in positions while reducing the cost of physical labor, replacing it with mental labor.

Every year more and more new models of robots are produced, which are more and more like people in terms of mental development. Amazon sponsors an annual innovation competition that promotes the improvement of warehouse machines. According to researchers, in the next couple of years, the situation of full employment in Amazon warehouses will change (Rawat, 2021). Technology will eventually displace people from warehouse complexes. Of course, this will not happen overnight. Perhaps the first sign will not be layoffs but a slowdown in job creation.

The company’s management adheres to the position that automation and robotization not only increase productivity but also, in some cases, stimulate consumer demand, and this in turn only provokes the emergence of new jobs. They see it as a fabrication that automation nullifies job growth. However, whether this will be the case in the next few years, only time will tell. Amazon is a pioneer in the use of robotic employees in warehouses. Thanks to them, it was possible to reduce the time for searching, packaging, and transporting goods to the recipient. This fact not only reduces costs and increases the profitability of the company but also allows customers to show their loyalty to the brand.

The recommendation for Amazon within the scope of the topic will be to integrate Electronic Data Interchange (EDI). In the near future, big data will increasingly find application in the warehouse business. In a nutshell, EDI technology allows documents to be exchanged between two computer systems using a common data format (Interlake Mecalux, 2021). The warehouse industry has long embraced it, but its use is likely to expand. When integrated into an efficient warehouse management system (WMS), EDI provides numerous benefits. First of all, it is the seamless and transparent flow of information between two different computer systems.

References

Interlake Mecalux. (2021). EDI in logistics: technology for standardized communication. Web.

Rawat, S. (2021). How does Amazon use warehouse technologies? Analytics Steps. Web.

Rey. D. (2019). How robots are transforming Amazon warehouse jobs — for better and worse. Vox. Web.

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BusinessEssay. (2023, January 23). Amazon Company's Modern Development of Warehouse Complexes. Retrieved from https://business-essay.com/amazon-companys-modern-development-of-warehouse-complexes/

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"Amazon Company's Modern Development of Warehouse Complexes." BusinessEssay, 23 Jan. 2023, business-essay.com/amazon-companys-modern-development-of-warehouse-complexes/.

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BusinessEssay. (2023) 'Amazon Company's Modern Development of Warehouse Complexes'. 23 January.

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BusinessEssay. 2023. "Amazon Company's Modern Development of Warehouse Complexes." January 23, 2023. https://business-essay.com/amazon-companys-modern-development-of-warehouse-complexes/.

1. BusinessEssay. "Amazon Company's Modern Development of Warehouse Complexes." January 23, 2023. https://business-essay.com/amazon-companys-modern-development-of-warehouse-complexes/.


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BusinessEssay. "Amazon Company's Modern Development of Warehouse Complexes." January 23, 2023. https://business-essay.com/amazon-companys-modern-development-of-warehouse-complexes/.