Jeff Bezos, the chief executive officer (CEO) of
) announced that the company is expecting to deploy an army of
nearly 10,000 robots at its warehouses worldwide by the end of
Currently, Amazon has around 1,000 robots to help fulfill customer
orders. However, the increase in robot workers will not affect the
number of employees already working or the rate of employment at
the fulfillment centers.
The robots are built by Amazon's subsidiary Kiva Systems, which it
had acquired two years ago for $775 million, in a bid to increase
the level of automation in its warehouses. The robots are tied in a
composite framework. It takes months to set up the system, which
includes the planning and examination process also. The robots made
my Kiva comprise mobile shelving systems that automatically
transport items to workers.
Amazon has been expanding its fulfillment centers around the world,
with the addition of seven new centers over the past year. The
increase in the level of automation can help Amazon simplify
operations, save time and reduce fulfillment costs.
Amazon has been striving to beef up its delivery system in order to
provide better customer services. In relation to these efforts,
Amazon has plans to develop a drone-based delivery service where it
will deploy airborne robotic drones to deliver packages to
consumers in 30 minutes.
However, these plans involve numerous legal and technical
hindrances. Other companies interested in this dynamic world of
Amazon holds a Zacks Rank #3 (Hold). A better-ranked stock in the
same sector is
) with a Zacks Rank #2 (Buy).
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