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    « Amazon to Test Sunday Delivery | Main | More Battles By E-Retailer Amazon and Competitors For Same-Day Delivery »
    Thursday
    May292014

    Amazon To Use Robots In Warehouses And Same-Day Delivery For Online Orders

    When it comes to aggressive, pioneering technology in e-retail order fulfillment, there are few companies doing what Amazon does. The robust, web-based retailer numerous of fulfillment centers strategically placed throughout the US, and the number is growing rapidly. Yet, Amazon is not only after quantifying its’ growth, but also optimizing the quality of the warehouses. This is where Amazon’s next step could be groundbreaking and revolutionize how retailers fulfill their orders as soon as this year.

    Amazon is about to increase the current 1,000 robot worker scale in its’ warehouses to 10,000 by the end of 2014 reported CNN Money. Amazon CEO Jeff Bezos held a meeting with its’ shareholders explaining the new initiative and its’ benefits. It will save time and money, as fulfillment cost will go down.

    The retailer bought robot-maker Kiva Systems two years ago and is using those same robots today. The report stated the robots operate on a highly, complex grid, which requires months of planning and testing to make it work. The new robots will not change Amazon’s employee numbers at the warehouses, but will enhance order fulfillment. This is one aspect of Amazon fulfilling orders, utilizing the latest in robot technology. However, Bezos showed last year that not only technology innovation for order fulfillment is high on the retailer's list, but also the speed in which online packages leave the warehouse and into the shopper’s hands.

    Using actual flying drones for same-day delivery of online orders was announced by the CEO as a serious implementation, which Amazon televised drone footage on 60 Minutes. The "octocopters" will be used for Prime Air, another service option within Amazon's Prime family. Customers will be able to receive the online orders within thirty minutes or less. Drones may be quite a hefty investment on the front end, but at the latter, its' definitely worth it. 86% of all Amazon order types actually meet the drone delivery criteria. This translates into volume to cover its' drone costs and gain profit share.

    The Federal Aviation Association (FAA) does provide some hurdles that the warehouse robots won't have to consider. The agency stated it will take "several years" to create the drone rules. The agency did state that it has already tested an "Unmanned Aircraft Systems roadmap" last year and is reviewing national airspace requirements. 7,500 drones will fly in the US within five years, which the first commercial drone was used last September for surveying. Inspite of the red tape, Amazon is as focused on drone use, as it is in warehouse robots.

    These floor-based robots are for the purpose of getting orders fulfilled faster, but its' for naught if Amazon can’t deliver the order just as fast, when it leaves the warehouse. This is where a Same-Day Courier Services like A-1 Express can make the difference, especially within a thirty-mile radius. The San Jose Courier can be a national source for Amazon to match its' speed inside the warehouse. With the logistical expertise and latest courier technology, A-1 Express can meet and exceed all of Amazon's same-day delivery needs. There is no need for Amazon to perform its' own deliveries, when A-1 Express can do it and make for lowering delivery costs long-term.

    Reference: 5.22.14, CNN Money, Katie Lobosco, Army of robots to invade Amazon warehouses

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