Automated Guided Vehicle Systems at Amazon Logistics Operations

Running head: AUTOMATED GUIDED VEHICLE SYSTEMS AT AMAZON LOGISTICS OPERATIONS
Automated Guided Vehicle Systems at Amazon Logistics operations
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1AUTOMATED GUIDED VEHICLE SYSTEMS AT AMAZON LOGISTICS OPERATIONS
Executive Summary
The report discusses about the major problems that are currently being affecting the workplace of
Amazon. In the present scenario, the major problems that affect the work sector is based on the
operations with the impact of manual labour. However, this leads to low productivity within the
workplace. Hence, the Amazon fulfillment centres should employ the use of Automated Guided
Vehicles to improve the current business functionalities. In this report, the use of AGV within
the workplace is discussed for improving the present working conditions and ensuring the
products are delivered to the customers within the shortest possible time.

2AUTOMATED GUIDED VEHICLE SYSTEMS AT AMAZON LOGISTICS OPERATIONS
Table of Contents
1. Introduction..................................................................................................................................3
2. Current Process Analysis (As_IS Process Analysis)...................................................................4
2.1 Evaluation of Current Business Operations and Processes...................................................4
2.2 Critical Issues and Key Problems in Present Situations........................................................5
3. Propose Solution (To_Be Process Analysis)...............................................................................6
3.1 Proposing Solutions to Identified Problem............................................................................6
3.2 Evaluation of the Problem.....................................................................................................7
4. Critical Appraisal.........................................................................................................................8
5. Conclusion.................................................................................................................................10
References......................................................................................................................................11

3AUTOMATED GUIDED VEHICLE SYSTEMS AT AMAZON LOGISTICS OPERATIONS
1. Introduction
Amazon Logistics is considered as a shipping and delivery service that is mainly meant
for complementing and assisting existent logistics service providers such as USPS, UPS and
FedEx. The Amazon Logistics department provides same day and 7-day options for delivery. It
utilizes a varied host of third-party logistics partners all over the country.
In 2012, Amazon had acquired Kiva systems, which are Automated Guided Vehicle
(AGV) systems. The acquisition of Kiva had created a spark within the logistics operational
sector of the organisation (Yu et al., 2016). The Kiva systems are considered as a robotic system
that could be implemented within the warehousing department in order to bring in efficiency
among the various processes.
(Fig 1: The Kiva AGV systems used at Amazon Fulfilment Centres)