Automated System Of Goods Movement In Amazon Warehouse

Automated System Of Goods
Movement In Amazon
Warehouse
Name of the Student
Name of the University

Company Background
 The largest Internet-based company in the world in
terms of business and revenue
 Firstly, with selling of books, the company shifted to
other product domains (Correll et al. 2016)
 The company has expanded their operation to
different programs by incorporating a strong
business culture

Products and Business Popularity
 Offering broad range of products widened the door
of the business to international customers
 Recommended product function was a major form of
business offering (Shank 2016)
 Inclusion of customer reviews fostered a healthy
“customer community”

Project Objectives
The project objectives based on implementation of an
improved automated warehouse system are:
 Mapping the current functionality of the business system
at the warehouse
 Determining and analyzing the to-be implemented future
systems
 Improving customer satisfaction rate with better delivery
service

Automation Systems at
Amazon Warehouse

Introduction to the Project
 The project is being designed to understand project
value to organization and stakeholders
 Automated systems within the Amazon warehouse
would help in saving costs for the business (Wasesa,
Stam and van Heck 2017)
 Delivery rate to customer orders would be enhanced
 Better business revenue and more customers incurring

The Steps within the Project
 Research mapping and project plan layout
 Approval from Stakeholders and Resource procurement
 Starting development works
 Quality checks and final approval
 Deployment

Impact on Organizational Culture
 Incurring of 80,000 Kiva would be deployed across
25 fulfillment centers
 Reduction in order times and increasing business
throughput (Merschformann 2018)
 Resulting in an approximate of $22 million savings
for every warehouse after deployment

Identified Stakeholders and Values
 The stakeholders for this project includes: Business
managers, project managers, technicians,
warehouse managers and employees
 Values are based on delivering a project including
all project details
 KPIs include: impact of KIVA systems on business
sales, number of orders delivered in a particular day

Project value from Organizational Point-of-View
 Traditional modes of warehouse dispatches were made
using conveyor system or using forklifts
 The new Kiva systems would locate goods automatically,
load them and transfer them to the delivery vehicle
(Marks 2019)
 Efficient approach by systems would determine accuracy
 Removal of heavy workload over human labours

Project value from Organizational Point-of-View
 Investment in the area of introducing Kiva systems would
impact on the cost structure
 Better warehouse jobs would be seen (Farah, Bensaghir
and Iliass 2019)
 A first-of-the-kind innovation for Amazon in the
international marketplace
 Acquisition of more devices would lead to better
productive operations at different fulfillment centers

Project value from Organizational Point-of-View
 Incurring Kiva systems would lead to a greater benefit
in terms of stock deals
 Logistical infrastructure would see a major
improvement
 Reduction in supporting towards rising labor costs
 Creating the best position in the highly competitive
market

Monetary Impacts over the Business
 Amazon would require $1.7 billion to deploy the
Kiva systems across all fulfillment centers
 The project would lead to incredible form of wealth
creation (Yuan 2016)
 According to future cost predictions, an $15 billion
of net monetary worth would be incurred.

Project value from Stakeholder Point-of-View
 Stakeholders comprise of: Business Managers,
Fulfillment Center Experts, Customers
 Introduction of revamped Kiva systems would
support each human labor within the Fulfillment
Centers
 Quick pickup and loading service helps in increasing
the delivery rate of orders

Project value from Stakeholder Point-of-View
 A quick process is followed with mobile robot and
human working together
 Concern for placing goods at proper trucks would be
mitigated (Yu et al. 2016)
 Movement of the Kiva Systems would be highly
optimized
 Re-slotting of Kiva systems would be made in real-time

Impact on Business Stakeholders
 Task Dashboard visualizes that the project is 34%
complete
 58% of the project activities have not started yet(Su et
al. 2019)
 Project manager would have a better visualization over
the business progress aspect
 Better focus on driving strategies for proper work
progress

Impact on Business Stakeholders
 Task lengths help in determining the duration of tasks
based on their needs
 Understanding of task lengths would help in
determining proper setting of activities accordingly
(Robischon 2017)
 Cost allocated determines per activity total cost
incurred
 Better driving towards project success results

Future Trend of the Impact on Business

Data forecast of Order Fulfillment at FBA

References
Correll, N., Bekris, K.E., Berenson, D., Brock, O., Causo, A., Hauser, K., Okada, K., Rodriguez, A., Romano, J.M. and
Wurman, P.R., 2016. Analysis and observations from the first amazon picking challenge. IEEE Transactions on
Automation Science and Engineering, 15(1), pp.172-188.
Cunningham-Parmeter, K., 2016. From Amazon to Uber: Defining employment in the modern economy. BUL Rev., 96,
p.1673.
Farah, B., Bensaghir, A.N. and Iliass, T., 2019. Minimization of Delivery Time in E-Commerce and the Impact on the
Global Value Chain. Arabian J Bus Manag Review, 9(376), p.2.
Li, J.T. and Liu, H.J., 2016. Design optimization of Amazon robotics. Automation, Control and Intelligent Systems, 4(2),
p.48.
Marks, M., 2019. Robots in space: Sharing our world with autonomous delivery vehicles. Available at SSRN 3347466.
Merschformann, M., 2018. Active repositioning of storage units in Robotic Mobile Fulfillment Systems. In Operations
Research Proceedings 2017 (pp. 379-385). Springer, Cham.
Robischon, N.O.A.H., 2017. Why Amazon is the world’s most innovative company of 2017. Fast Company Magazine, 2.
Shank, D.B., 2016. Using crowdsourcing websites for sociological research: The case of Amazon Mechanical Turk. The
American Sociologist, 47(1), pp.47-55.
Su, T.S., Lee, S.S., Hsu, W.H. and Fu, S.H., 2019. A fuzzy-based approach to improve the human pick-to-light efficiency
incorporated with robots behavior in an intelligent distribution center. Procedia Manufacturing, 38, pp.776-783.
Wasesa, M., Stam, A. and van Heck, E., 2017. Investigating agent-based inter-organizational systems and business
network performance. Journal of Enterprise Information Management.
Yu, K.T., Fazeli, N., Chavan-Dafle, N., Taylor, O., Donlon, E., Lankenau, G.D. and Rodriguez, A., 2016. A summary of team
mit's approach to the amazon picking challenge 2015. arXiv preprint arXiv:1604.03639.
Yuan, Z., 2016. Improving the Speed Delivery for Robotic Warehouses. IFAC-PapersOnLine, 49(12), pp.1164-1168.

Thank You