Amazon’s Automation Drive: A Potential $4 Billion Annual Savings
Amazon’s ambitious drive towards warehouse automation could potentially generate annual savings ranging from $2 billion to $4 billion by 2027, as per Morgan Stanley analysts. The e-commerce behemoth plans to establish approximately 40 state-of-the-art robotics warehouses by the end of 2027. Internal documents indicate that the company is aiming to automate a whopping 75% of its operations.
The company recently took the wraps off its innovative “Blue Jay” robotic system. This system integrates picking, sorting, and consolidation tasks into a single, efficient workstation. This development comes on the heels of Amazon’s deployment of its one millionth robot and the roll-out of AI-powered systems that enhance robot fleet efficiency by 10%.
Despite the fact that Amazon insists that automation paves the way for new job opportunities and enhances worker safety, internal projections hint that the company could potentially avoid recruiting over 160,000 U.S. workers in the upcoming two years. CEO Andy Jassy has pointed out that the company’s most technologically advanced robotic warehouse in Shreveport, Louisiana, has already slashed fulfillment costs by approximately 25%.
Source: CNBC