Amazon Tests Robots For Automating Fulfillment Centers
Yahoo Finance shares an interesting prediction. Amazon has an "under-the-radar robot push" that "could boost its profit margins big-time, Morgan Stanley managing director Brian Nowak said."
Nowak said Amazon has quietly developed six significant next-generation fulfillment centers in the past three years that bring automation front and center... Amazon now has industrial robots that can increase efficiencies across the storage, inventory management, pick and packing, and sorting order fulfillment processes.
Fulfillment costs make up about 20% of Amazon's retail revenue, so he reasoned that automation could have a significant impact on long-term operating profit potential. Nowak says if 30% to 40% of Amazon's US units were fulfilled through next-generation robotics-enabled warehouses by 2030, it could lead to $10 billion-plus of savings... The investments in robots may already be paying off. Amazon's North America retail operating margins on a trailing 12-month basis have risen for five straight quarters. North America operating margins improved to 6.2% from 4.6% a year ago.
Nowak made the remarks on a Yahoo Finance podcast (at the top of their article) after touring one of Amazon's robot-enhanced sites in Louisiana. He believes robotics can drive down Amazon's costs compared to other retailers like Target (which he sees as lagging behind Amazon on robotics).
Meanwhile workers at an Amazon facility in North Carolina held a vote Saturday on whether to unionize. But roughly 75% of the workers voted against unionization.
Read more of this story at Slashdot.
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