Tuesday, December 9, 2014

Ryder Rohrbach: Amazon Kiva #5

Amazon rolls out Kiva robots for holiday season onslaught | Reuters

"promises to cut operating costs by one-fifth and get packages out the door more quickly"

"installed more than 15,000 robots across 10 U.S. warehouses, "

"Amazon has adopted technology developed by Kiva Systems, a robotics company it bought for $775 million in 2012."

"designed to help the leading U.S. online retailer speed the time it takes to deliver items to customers and better compete with brick-and-mortar stores,"

"avoid the mishaps of last year's holiday season, when a surge of packages overwhelmed shipping and logistics company UPS and delayed the arrival of Christmas presents around the globe."

"The updated warehouses are in five states -- California, Texas, Florida, New Jersey and Washington."

"Amazon estimated in June 2013 that it would spend about $46 million to install Kiva robots at its warehouse in Ruskin, Florida, including $26.1 million for the equipment,"

"allowed Amazon to hold about 50 percent more items and shorten the time it takes to offer same-day delivery in several areas, said Dave Clark, senior vice president of worldwide operations and customer services."

"shelves carried by more than 1,500 Kiva robots, which use markings on the floor to navigate and form a "big block of inventory," Clark said."

"eliminates the need for workers to navigate aisles to collect items ordered by consumers."

"a worker calls for specific items and the robot steers itself to their particular work station."

"Each robot can carry as much as 720 pounds."

"the robots have allowed Amazon to get packages out the door in as little as 13 minutes from the pick stations, compared to about an hour and a half on average in older centers."

"

"It's certainly proving out that it's justified itself," Clark said of the Kiva acquisition. "We're happy with the economics of it."

"

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