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Amazon: Fully Automised Warehouses

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Human VS Robot Staff

It has been found, although this number has decreased in recent times, Amazon have more human staff (primarily in the warehouse) than robot workers. Having human staff comes at a higher cost than having robotic staff. Humans require sick days, holidays, breaks, food/drinks, and much more. This is why we recommend Amazon to become fully automated with sufficient evidence from other E-commerce brands.Click here to move to the next slide

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- It can meet consumer demand at a rapid pace- Supply chain management efficiency increases- Digitally transformed businesses can detect long-term consumer behaviour faster than traditional businesses- Increases customer satisfaction(click here for more info)

"the integration of digital technology into all areas of a business resulting in fundamental changes to how businesses operate and how they deliver value to customers." (The Enterprisers Project, 2024)

The Benefits

Over a course of the next 5 years, we advise Amazon to start slowly reducing (laying off) their human warehouse/logistics workforce. This is because there has been a discussion among E-commerce companies of 'the dark warehouse' theory. According to Forbes (2023), 'the dark warehouse' is a concept of a fully automised warehouse that functions with robots working in a spacious warehouse with no lights. This would save thousands for E-commerce brands on energy costs, reduce emissions and increases productivity as the 'workers' would function in the dark 24/7 while constantly packaging customer purchases to be shipped to them the next day. To get to this point, Amazon has already made a start with its robots.This year, Amazon has begun a undergo of testing and experiments to make fully humanoid robots (click picture to make full screen). These robots can fully function without the need of human assistance, can walk, pick up parcels, package orders and store away Amazon parcels. Although in the early stages, once it has been released into its Beta or Alpha stage Amazon can begin reducing human staff every year. By the fifth year, Amazon should only have 1 to 5 human warehouse mechanics per warehouse Amazon owns, but only to repair/update/replace the humanoid robotic staff.

Plan

Consumer demand has changed dramatically since the era of lockdown. With the increase in social media usage, market trends are shifting every day. For example, during mid 2023 the trend for footwear changed from Birkentstocks to Uggs to ballet slippers to now being the retro Adidas Sambas. This was in the span of 6 months. Around 6 years ago Converse were reigning as the superior footwear in fashion for under a decade, now brands cannot stay relevant for more than a month.Becoming a digitally transformed organisation means the machine can scour through hours of content within seconds and identify consumer demands while a traditional organisation would require a full department of human workers to identify new trends in about two weeks.