AMAZON PROJECT

Professor:
Cristian Omar Torres Ramírez.

INTERNATIONAL MARKET INTELLIGENCE II

Group: 6°C

Student:
Edith Berenice Pérez Guereca.
Montserrat Nayelí Roque Damasco.
Clío Aurora Rangel Armendáriz.
Sarahí Pérez Torres.
Olmar Yashiro Salazar Hernández.

Delivery date: 16/07/2022

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INDEX INTRODUCTION..........................................................................................3
LEVEL 1 REGIONAL SITUATION…………………………………………………...…5
LEVEL 2 GLOBAL SITUATION..............................................................................6
LEVEL 3 NATONAL SITUATION............................................................................8
BIBLIOGRAPHIC REFERENCES:........................................................................10

INTRODUCTION
Amazon is the world's largest online retailer, which implies that its logistics must be
centralized to a "just in time" analogy, primarily because Amazon surpassed the $1
billion mark in sales per day in 2020 and the firm never assumed that in the
following years it would maintain or raise its revenues by the proximity of direct
purchase to the availability of the network.

The organization has managed to establish completely independent websites to

carry out various markets around the world, so the activities to be carried out and
the work effort is constantly increasing. However, the company appointed a new
robot project to perform distribution and warehousing tasks 24 hours a day, every
day, these robots are called "Kiva" and California is the first center of placement
that has more than 3,000 robots to activate the new model to meet millions of
orders.

Previously operators had to walk the aisles of the warehouse to identify each
individual's order from the web, now with the programmable electronic ingenuity
brings directly each merchandise, each weighs 320 pounds and can lift up to 750,
has motion sensors to detect obstacles and can move at a speed of between 3 and
4 miles per hour, increasing twice the productivity that a normal worker offers in the
same time sequence.

The company says that the robots make it possible to store 50% more inventory in
the warehouse that has a size of 59 soccer fields, and of which it wants to increase
the dimension in different points in the world to make increasingly feasible the
incorporation of machines in the seal, since this model allows to increase efficiency

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to 20%, so that customer orders can be completed in an estimated period of 12 to
15 minutes as opposed to a worker that takes 90 minutes or up to 2 hours.

This pattern is not about supplanting humans but to enhance the delivery skills, the
operators will only be responsible for taking the products from the robots and place
them on the shelves moved by the same automatons, Amazon has a control of 50
distribution centers with the same programming algorithm and currently has no
failures or errors that make the productivity level is reduced to 5% across the plant.

These robots were originally designed by Kiva Systems, a company that was
acquired in 2012 and renamed Amazon Robotics and in favor of Jeff Bezos
demonstrated to the world that by increasing the world's GDP has to be taken into
consideration in a forecast of how to integrate this process to the distribution
channels of service companies, because, by habituating to a single organization,
competencies will have an economic decline in their efficiency.

Data from around the U.S. using Kiva robots doubled the management and sorting
of goods from 700,000 items to a new high of 1,000,000, and the accuracy level is
a staggering 99.99%. In addition, other prototypes are being brought to market
acceptance in their industrial development with the purpose of once again
complementing supply chain strategies to classify which activities need to be
changed or which need to be improved.

Service organizations mention that this proposal will develop a better placement for
international markets, supplanting micro businesses by balancing the cost of
operations and thus automating the assessment of damages in countries. On the
other hand, logistics points out that it will increase the daily productivity of people to
improve the system of human activities that will allow to move forward with greater
opportunities that will not only serve for business, but academically or a personal
companion to give a support for the execution of daily tasks of the elderly.

These decisions are related to the incorporation of technology in the social impact
in an advanced system, robots are the new change in humanity and the functions
of how to approach the customer are advantageous given the accessibility of the

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content of the company, economic participation in the same environment, social
contributions and infrastructure proposals to ally with the competition in some
certain areas productive to the same function or social object in the marketing
process when the distribution system no longer depends only on internal factors.

The processes of this development involve giving better coverage and reach to
retailers and wholesalers, giving a freedom of excellence to sellers who decide to
use this model and ensuring that the sequence of the same declines more than
75% on Amazon if it does not establish or restructure the process of intermediaries
to deliver the goods to the consumer.

The success factor of the firm is always continuously exposed by innovation, so in

addition to that, the particular way of gaining the trust of its current clients, potential
clients is by taking advantage of the software technology employed with an
unlimited capacity of accumulating tasks that operate without an end to finish the
service you get that you need.

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LEVEL 1 REGIONAL SITUATION

THE KIVA ROBOTS

These robots are fully autonomous, equipped with sensors; they carry thousands
of orders a day and are responsible for the daily operations of some of Amazon's
warehouses (the goal is to use them worldwide throughout Amazon).

REGIONAL

Approximately 50 logistics centers between warehouses, centers and more,

Amazon has only in the United States, in the states of California, Texas, New
Jersey, Washington and Florida, robots that have begun to reduce from hours to
minutes the ordering process compared to the previous method where to get the
product or order by the customer had to walk through the aisles and take hours to
find the right one and in this case the robots are responsible for moving the shelves
to the location of the worker who selected the product order.

Demand growth

This already applied technique has shown us the maximum growth of demand in
Amazon and that the big shopping dates like Christmas and Black Friday have had
a record of billions of orders.

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LEVEL 2 GLOBAL SITUATION
Artificial intelligence and robotics have evolved a lot around the world, so Amazon
was not left behind, implementing Kiva robots in its supply chain and warehouse
logistics, being produced by the company Kiva Systems now named Amazon
Robotics.

The robots help to sort goods in Amazon's warehouses, improve the customer
experience by reducing the delivery time of its products and work in conjunction
with employees to facilitate labor activities.

Young Yang, an instructor at Amazon Solution Architecture, has confirmed that the
use of Kiva robots has even doubled efficiency, as these "little guys" have been
able to raise merchandise management and sorting from a previous high of
700,000 items per day to a new high of 1.5 million items, and with an accuracy
level of 99.99%. This also makes it easier for the human staff, who can now handle
a larger number of packages for shipment, (Isidro Ros, 2018).

Dave Clark, the senior executive in charge of operations at Amazon, noted that the
company wanted machines to do most of the monotonous tasks and people to
have jobs that keep them mentally occupied.

"Every time you have a new goal," Clark asserted. "You find things and you inspect
things; your mind is occupied in a way that I think is important." (Nick Wingfield,
2017).

Amazon's Clark said the story showed that automation increases productivity and,
in some cases, consumer demand, which ultimately creates more jobs. He

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explained that warehouse employees will continue to work in technology-filled
environments (Nick Wingfield, 2017).

Therefore, the technological and social impact that this type of machines has helps
to evolve the way of working in a traditional way, where there is more ease to carry
out some activities and a harmony with employees, i.e., robots and employees
work hand in hand to search, sort, transport, and store products. This does not
minimize the work done by both, but it is an ease for employees not to have to do
heavy tasks that, although they help and are necessary to meet the goals of the
company, are a waste of time for the supply chain and the ability of employees.

Around the world, several companies are already integrating in their systems the
use of different robots to optimize their production or delivery of goods, considering
that they do not want to eliminate labor or reduce jobs, but that people see it to
grow, innovate and optimize their work activities.

However, there is still a fear of innovation among people.

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LEVEL 3 NATONAL SITUATION

The robots working in Amazon's logistics centers are actually robotic arms and
small drives designed to help employees shorten delivery times, optimize inventory
and optimize costs for the customer. And the company chooses to define what is
not a question of humans versus robots, but of humans plus robots, as Amazon
manages 175 logistics centers around the world. In 26 of them, robots and humans
work together to pick, sort, transport and store packages.

In these centers, robots are responsible for lifting heavy items and preparing them
for transport, while the staff in charge of picking customer orders can easily identify
the items instead of having to search for them on the shelves. The products come
directly to the employees and it is the employees who provide rational judgment,
i.e., the employees understand what they are unpacking and find a way to unpack
it without damaging it.

Dave Clark, the senior executive in charge of operations at Amazon, described in

simple words the company's goal in deploying machines so that machines would
do most of the monotonous tasks and people would have jobs that would keep
them mentally occupied.

"Every time you have a new target, you find things and you inspect things, your
mind is occupied in a way that I think is important." (Dave Clark)

Nationally, the way in which the implementation of these devices would benefit the
company's distribution centers within the country focuses on important factors of

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production, cost and time reduction in the company, which include the work of
employees coming into contact with their new co-workers: the machines.

When the company installed the robots, some people who previously stacked
containers inside the warehouse, creating traffic within the area, took courses at
the company to become robot operators. Many others switched to receiving
stations, where they manually sort large boxes of goods and put them into the
containers.

No one was laid off when the robots were installed, and Amazon found new roles
for the displaced workers. "People didn't go anywhere" (Dave Clarck).
Two important advantages that are developed with this new system would be the
following:

- The speed of the process, since the robots do not get tired, the hours of rest
needed for the personnel are eliminated, and in this way, it is possible to maintain
a continuous process where they work full time and without complications.

- This type of automation facilitates the processes of reading and classifying

products, since they identify and classify the load with ease. And storage becomes
much more efficient, since the reach of robots in terms of height and space is
much greater than that of humans.

As mentioned above, the classification of the load and its arrangement becomes
more efficient, a production factor that is highly valued in a business way since
errors in the stock are minimized and there is an increase of control in the inventory
area, even influencing the increased safety of employees, so that they are not in
danger of accidents due to the heavy packaging material that is usually distributed
within the company. And not only the safety of the personnel would increase, but
also the business and commercial area, since with this type of automation the
customer's data would be protected.

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BIBLIOGRAPHIC REFERENCES:
• Abrumador dominio del mercado: Amazon tiene 1,000 mdd en ventas al día.

(2021, 3 febrero). El Financiero. Recuperado 14 de julio de 2022, de

https://www.elfinanciero.com.mx/tech/abrumador-dominio-del-mercadohttps://

www.elfinanciero.com.mx/tech/abrumador-dominio-del-mercado-amazon-tiene-

1-000-mdd-en-ventas-al-dia/amazon-tiene-1-000-mdd-en-ventas-alhttps://

www.elfinanciero.com.mx/tech/abrumador-dominio-del-mercado-amazon-tiene-

1-000-mdd-en-ventas-al-dia/dia/#:%7E:text=Los%20ingresos%20de

%20Amazon%20en,386%20mil%20 millones%20de%20d

%C3%B3lares.&text=Amazon%20super%C3%B3%20l a%20marca%20de,casi

%20un%C3%A1nime%20en%20Wall%20Street.

• Mateos, S. M. U. (2018, 26 octubre). ¿Qué es Amazon? Actualidad

eCommerce. Recuperado 12 de julio de 2022, de

https://www.actualidadecommerce.com/que-es-amazon/

• Silva, R. I. (2021, 26 marzo). Kiva de Amazon, ¡el robot que lleva tus

pedidos! Talent Republic. Recuperado 10 de julio de 2022, de

https://www.talenthttps://www.talent-republic.tv/iron/robots-drones/kiva-de-

amazon-el-robot-que-lleva-tus-pedidos/republic.tv/iron/robots-drones/kiva-

de-amazon-el-robot-que-lleva-tushttps://www.talent-republic.tv/iron/robots-

drones/kiva-de-amazon-el-robot-que-lleva-tus-pedidos/ pedidos/

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• D. (2020, 8 mayo). La familia de Amazon Robotics: Kiva, Pegasus, Xanthus

y más . . . Procesos industriales. Recuperado 8 de julio de 2022, de

https://procesosindustriales.net/lean-manufacturing/la-familia-de-

amazonhttps://procesosindustriales.net/lean-manufacturing/la-familia-de-

amazon-robotics-kiva-pegasus-xanthus-y-mas/robotics-kiva-pegasus-

xanthus-y-mas/

• Ros, I. (2018, 19 octubre). Amazon mejora su eficiencia gracias a los robots

Kiva. MuyCanal. Recuperado 14 de julio de 2022, de

https://www.muycanal.com/2018/10/20/amazon-eficiencia-robots-kiva

• Información, L. (2017, 8 enero). Las novedades del CES 2017: de robots

humanoides a televisores «súper-planos». La Información. Recuperado 14

de julio de 2022, de https://www.lainformacion.com/empresas/kiva-

elhttps://www.lainformacion.com/empresas/kiva-el-empleado-mas-eficiente-

del-mundo-es-un-robot-y-no-esta-solo/6337859/empleado-mas-eficiente-

del-mundo-es-un-robot-y-no-esta-solo/6337859/

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