Meet The Robot Armies That Are Transforming Amazon’s Warehouses
By Jessica Dineen
Will robots take over the world? In a word, yes—at least the world of e-commerce.
Leading the charge are the two-foot-tall, 320-pound, orange bots of Kiva Systems, a Massachusetts company founded in 2003. Kiva is dedicated to revolutionizing warehouse operations with robotic solutions for picking, packing, and shipping products.
In a Kiva-engineered warehouse, robots are programmed to fulfill each order. They scuttle across the floor, using barcodes to navigate. With mechanisms similar to that of a car jack, they lift and carry lightweight racks stocked with merchandise. Meanwhile, humans get a break, each presiding over a single work station. Once a robot arrives at a station, a red laser points the worker to the required item. After placing the item in a packing box, the worker indicates readiness to receive the next one by pushing a button.
Ranked by Inc. 500 in 2009 as the sixth fastest growing company in the U.S. and by Fast Company in 2012 as the 23rd most innovative company in the world, it's no wonder Kiva Systems has reached the top of the order-fulfillment food chain. The company is so hot that in 2012, Amazon bought it for $775 million cash.
Leading the charge are the two-foot-tall, 320-pound, orange bots of Kiva Systems, a Massachusetts company founded in 2003. Kiva is dedicated to revolutionizing warehouse operations with robotic solutions for picking, packing, and shipping products.
In a Kiva-engineered warehouse, robots are programmed to fulfill each order. They scuttle across the floor, using barcodes to navigate. With mechanisms similar to that of a car jack, they lift and carry lightweight racks stocked with merchandise. Meanwhile, humans get a break, each presiding over a single work station. Once a robot arrives at a station, a red laser points the worker to the required item. After placing the item in a packing box, the worker indicates readiness to receive the next one by pushing a button.
Ranked by Inc. 500 in 2009 as the sixth fastest growing company in the U.S. and by Fast Company in 2012 as the 23rd most innovative company in the world, it's no wonder Kiva Systems has reached the top of the order-fulfillment food chain. The company is so hot that in 2012, Amazon bought it for $775 million cash.
An Amazon Robot Army
There are many good reasons for Amazon's acquisition of Kiva. Bringing the technology in-house ensures Amazon a competitive edge in the increasingly important categories of fulfillment capacity and speed. At the time of Amazon's purchase, Kiva's customized robotic systems had already been installed in the warehouses of Staples, Walgreens, Gap, Office Depot, and Crate & Barrel, among others.
Kiva offers Amazon a way to streamline its fulfillment operations as they expand. In December, Reutersreported that Amazon has so far installed over 15,000 robots in 10 U.S. warehouses. According to supply chain and logistics consultants MWPVL International, Amazon's fulfillment network is growing faster than ever, with the number of North American distribution centers currently at 67, and the number of centers worldwide at 139, comprised of 90.8 million square feet in total. That's a lot of room for robots.
Kiva offers Amazon a way to streamline its fulfillment operations as they expand. In December, Reutersreported that Amazon has so far installed over 15,000 robots in 10 U.S. warehouses. According to supply chain and logistics consultants MWPVL International, Amazon's fulfillment network is growing faster than ever, with the number of North American distribution centers currently at 67, and the number of centers worldwide at 139, comprised of 90.8 million square feet in total. That's a lot of room for robots.
Robotic ROI
According to a U.S. Department of Commerce report released in February, total e-commerce sales in 2014 were estimated at $304.9 billion, an increase of 15.4 percent from 2013. Kiva robots help facilitate such growth while lowering the expense of fulfillment. The Associated Press reported in December that, according to Amazon Senior VP of Worldwide Operations and Customer Service Dave Clark, Kiva robots will help to slash operating costs by 20 percent. Meanwhile, they improve productivity: Amazon's Tracy, California distribution center can now process a package in 13 minutes, compared to 90 minutes older fulfillment centers, Reuters reported.
Kiva Systems also save space. Exceedingly neat, the systems' clutter-defying algorithms enable a 50 percent increase in storage capacity. Kiva COO Amy Villeneuve is particularly proud that Kiva robots can relocate an entire warehouse, from one perfectly organized space to another, in just 48 hours.
Perhaps most crucial of all to a company that prides itself on being cutting-edge, Kiva keeps Amazon ahead of the curve. On February 5, industry newsletter SupplyChain247 reported that in 2014, North American companies ordered robotics to the tune of $1.6 billion, up 19 percent from 2013, with an increase of 11 percent in the sector of material handling. In U.S. factories, 230,000 robots are in use, more than in any country other than Japan.
Kiva Systems also save space. Exceedingly neat, the systems' clutter-defying algorithms enable a 50 percent increase in storage capacity. Kiva COO Amy Villeneuve is particularly proud that Kiva robots can relocate an entire warehouse, from one perfectly organized space to another, in just 48 hours.
Perhaps most crucial of all to a company that prides itself on being cutting-edge, Kiva keeps Amazon ahead of the curve. On February 5, industry newsletter SupplyChain247 reported that in 2014, North American companies ordered robotics to the tune of $1.6 billion, up 19 percent from 2013, with an increase of 11 percent in the sector of material handling. In U.S. factories, 230,000 robots are in use, more than in any country other than Japan.
Robots of the Future
What's next in supply chain innovation? More of the same, with an eye toward ever faster and “smarter" bots. Fanuc America, a Michigan-based company whose robotics offer services ranging from spot welding to picking and packaging, advertises to potential clients that, “Fanuc robots make, move or manage anything." At the International Conference on Robotics and Animation this May, the company is a sponsor of the “Amazon Picking Challenge. " Entries will be scored based on speed and accuracy in picking items from shelves. Presumably, a winning system could collaborate with Kiva's.
Beyond order fulfillment, robotic industrial solutions are gaining traction throughout Asia, Europe, and the United States. Boston-based Rethink Robotics, which aims to bring jobs back to the United States by providing American factories with cost-saving robotic solutions, recently announced $26.6 million in financing. Kuka Industrial Robots, based in Germany with American headquarters in Michigan, is another frontrunner in automation technology, working with BMW and Adidas, among others. Meanwhile, Canadian company Clearpath Robotics is gaining ground in the sector of unmanned vehicles.
Like most robotics companies, Clearpath is hiring. Along with a plea for engineers on their website is a promise that could speak for the entire, burgeoning robotics industry: "We work to exceed our own wildest expectations."
Beyond order fulfillment, robotic industrial solutions are gaining traction throughout Asia, Europe, and the United States. Boston-based Rethink Robotics, which aims to bring jobs back to the United States by providing American factories with cost-saving robotic solutions, recently announced $26.6 million in financing. Kuka Industrial Robots, based in Germany with American headquarters in Michigan, is another frontrunner in automation technology, working with BMW and Adidas, among others. Meanwhile, Canadian company Clearpath Robotics is gaining ground in the sector of unmanned vehicles.
Like most robotics companies, Clearpath is hiring. Along with a plea for engineers on their website is a promise that could speak for the entire, burgeoning robotics industry: "We work to exceed our own wildest expectations."
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