Today, Amazon's staff member work in work in technology-enabled environments where the technology is utilized to improve cycles and help them doing their daily job, from the random stow
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Nhóm A - SV thực hiện:
1 Lê Vân Anh
2 Nguyễn Khánh Duy
3 Ngô Thị Mỹ Linh
Đà Nằng, tháng 10/2020
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I INTRODUCING
Nowadays, the increase in consumers switching from shopping in physical Stores to going online, many retailers have been forced to find ways to fulfil orders faster at much higher volumes than before Amazon is an immense Internet-based endeavor that sells books, music, motion pictures, housewares, gadgets, toys, and numerous different products, either straightforwardly or as the mediator between different retailers Its Web services business includes renting data storage and computing resources, so-called “cloud computing,” over the Internet Amazon has become one of the most powerful, respected and feared companies in tech, and well beyond Amazon’s logistics and shipping operations have become almost impenetrable moats that few other companies will ever have the resources or ability to match In addition, customer expectations in recent years have been on the rise - they want their orders delivered and they want it now Amazon has improved many areas to meet Customers’ demand, including inventor and packaging Our report will discuss the role of information and communication technology ( ICT) in two areas of international logistics operations in Amazon Company
Introduction of Amazon.com
Amazon was founded in 1994 in Bellevue, Washington by Jeff Bezos, whose full name is Amazon.com - a Seattle-based American multinational technology company The company's focus is on cloud computing, digital streaming, artiíicial intelligence, and e-commerce Amazon is considered one of the Big Four technology companies along with Apple, Google, and Facebook
Amazon's starting point is a bookselling site, Amazon has expanded diversiíied íields from selling books online, providing video, audio (mp3), audiobooks, to home appliances, furniture, furniture pet care, office products, apparel, food, jewelry, and hundreds of other product categories Regarding electronics, Amazon produces and sells electronic devices, including Kindle, tablet Fire, Fire TV, Echo, Ring, and others, and develops and produces multimedia content The company is also the dominant cloud
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become one of the leading Online retail groups with sales accounting for about 44% of total e-commerce sales in the United States in 2017
Amazon isn't just limited to the US market but has expanded internationally Currently, Amazon has its own websites serving six markets: Canada, UK, Germany, France, Japan, and China, serving more than 17 million consumers in 160 countries Amazon makes great care, from people just visiting the store to longtime customers
As a market trusted by customers, shopping with unlimited scope of business, doing business on Amazon-created platforms will greatly reduce costs When doing business on Amazon, sellers will not have to spend money to reach customers; be able to take advantage of Amazon's huge data warehouse; customers are not limited in the scope of a country or territory, but spread throughout the world; use Amazon's shipping services to ship items to your customers The lowest sales of a seller reach between 10000-15000 USD/month
The Amazon system is constantly updating and creating new business forms Some
of the current business models that Amazon is offering to sellers: dropship, FBA private label, vendor, Besides, Amazon also has a lot of other services that promote sales of sellers outside of Amazon wallets For example: shipping goods from Amazon's warehouse to a customer who buys goods on another distribution system, pulling traffic from Amazon to the seller website
To serve the business and storage of goods, Amazon has built a high-tech warehouse system to manage shipments more optimally The goods stored in the warehouse are very plentiful, ensuring the diverse requirements of customers, the scientiíic arrangement ensures the fast and efficient process of importing and processing orders All activities in the warehouse are handled through a high-tech system Workers receive orders from the computer to pick up goods and pack according to the process All are supported by robots and machines
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What is ICT ?
"Information and Communication Technologies", ICT refers to technologies that provide access to information through telecommunications It is similar to Information Technology (IT), however, centers principally around information exchange through technological advancements This consists of the Internet, wireless networks, mobile phones, and other means of communication
In the previous few decades, the development of data and communication technologies has provided humans with a huge amount of new communication abilities For instance, individuals can communicate with others in different parts of the world by utilizing technological equipment like instant messaging, voice over IP (VoIP), and video-conferencing Social media like Facebook permits clients from everywhere the world to stay in contact on a daily basis
Today, Amazon's staff member work in work in technology-enabled environments where the technology is utilized to improve cycles and help them doing their daily job, from the random stow and pick through to box-sizing algorithms, software that determines the shortest, most efficient walking route from one place to another and the SLAM process (Scan, Label, Apply, Manifest), which was developed by Amazon and remains a revolutionary innovation for customers because it speeds up the packing process and helps ensure accurate deliveries
II ICT IS USED IN AMAZON'S INVENTORY
II.1 An brief overview of Inventory
Inventory management is a systematic way to deal with sourcing, storing, and selling inventory—both raw materials (components) and íinished goods (products)
In business terms, inventory management means the right stock, at the right levels,
in the right place, at the right time, and at the right cost as well as price
As a part of your supply chain, inventory management includes factors such as monitoring and and administering buys — from suppliers as well as customers — keeping
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up the capacity of stock, controlling the measure of items available to be purchased, and meeting customers' order
The importance of inventory in logistics and supply chain management is the ability
to have end customer demand met with supplier sourcing Companies operate to make a profit, inventory is needed to conduct business, it also represents costs, flows, as well as proíits It is important to have inventory in place to meet optimally customer needs whenever inventory is needed Once the inventory is managed in accordance with logistics and supply chain management, it makes a profit for the company
Nowaday, Amazon's inventory management system is much more efficient with the help of the Kiva system that shortens order fulfillment time
II.2The development history of the Kiva system
The traditional warehouse model involves receiving products, putting them into compartments, and then workers will put these compartments on forklifts and trolleys These vehicles will transport the product to the shelves and be unloaded from the vehicle
to be loaded on the shelves When there are customers buying goods, workers go to the shelves to load and unload products and use forklifts and trolleys to bring the goods to the coordinator's place to pack and deliver goods Mick Mountz - an expert working for Webvan thinks a better solution is needed to collect, pack and deliver Mount has partnered with two robot technology experts Peter Wurman and Raffaello D’Andrea to create a completely new solution to automate traditional warehouses
There is some warehouse management automation software such as Manhattan Associates, HighJump, or RerdPriaire that can optimize worker efficiency, but the cost of completing the order is still quite high Kiva's solution was groundbreaking when it came
to the question: Why do people have to take and deliver from the shelves when the shelves can get to them?
In 2003, Mountz became the founder and CEO of Kiva System, Wurman and D’Andrea were co-founders The Kiva system was born with Kiva robots that carried the warehouse shelves of the warehouse to and from where it was needed
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Kiva creates robot operators ("boss" robots) that can locate the robot operators (ie Kiva robot, "soldier" robot) closest to the item to be moved and control the "soldier" robot "There you go get the hang The “soldier” robot automatically surrounds the warehouse through a series of bar-coded chains on the floor These "soldiers" have enough intelligence and sensors to avoid each other and obstacles When the robot arrives
at the right place, it will "crawl" under the shelf, lift it up and bring it to the dispatcher
Thus, there is not every single robot operation but a whole system, including robot system, automatic robot operation, warehouse floor and shelf
In March 2012, Amazon stepped in and acquired the entire Kiva Company for $ 775 million Amazon believes Kiva has given them a huge advantage and is as secure as it wants to monopolize that strength Before being sold to Amazon, Kiva was doing business very well, but Amazon took its warehouse automation business seriously, and they gave up profits from selling the same system to other companies and not giving away partners accessing the technology of Kiva System In August 2015, Kiva Systems LLC was officially renamed Amazon Robotics LLC
According to the Washington Post (issued on October 29, 2019), there are more than 200,000 Kiva robots operating in Amazon's warehouses so far With its Kiva solution in its warehouses, Amazon has minimized the number of warehouse workers and order fulfillment costs while improving the fulfillment of each order These days, the image of the orange Kiva robots running around in the Amazon warehouse is considered the symbol of warehouse management automation in the industrial age 4.0
II.3How Amazon’s Kiva robots work
Previously, to fulfill an order warehouse workers had to roam the floor scanning racks of merchandise in search of each speciíic product Kiva Systems developed a way to use robots to move the racks, or “pods,” on which the products are stored, instead of having them search out and move the individual products themselves Storage pods can hold hundreds of different types of products, but the size and shape of each pod is exactly the same
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The Kiva looks like an oversized, electric-powered pot but can lift a shelf weighing about 1.3 tons and automatically move on command from a distance They're about 16 inches tall and weigh almost 320 pounds They can run at a steady 5 mph It can move the target shelf from the warehouse to the handling area, then move the empty racks back to their original position When the battery is too low, Kiva will automatically return to the charging position to charge itself Basically, it was like a group of hardworking workers, constantly walking around in the warehouse How to avoid collisions while on the go is one of the core technologies of the Kiva System, which Amazon has seen and appreciated
There are two versions of Kiva robots, the “G” drive for light pods weighing up to
750 pounds and the “S” drive for larger racks and pallets weighing up to 3,000 pounds Both models are designed to operate on a rotating schedule of 60 minutes of work, followed by 5 minutes of charge time
The robots are controlled by a centralized computer using a secured WiFi network for communication They have two powered wheels that allow them to rotate in place, IR for obstacle detection, and floor cameras to read QR codes on the ground The QR codes are used by the robots to determine their location and direction
When the customer clicks the final “Buy Now” button, the order enters a sophisticated fulfillment system, which locates the products in different Amazon delivery centers An order of several products might be shipped from several locations, depending
on product type and availability Then the system assigns priority depending on the customer’s delivery preference — a “Super Saver” order might wait several hours, while
an AmazonPrime order must be shipped the same day Once priority is determined, the robots start to locate and move pods to the assigned packing station to prepare the order for shipment
The robots keep workers at the warehouse fully employed, according to Durham The system is designed to optimize robot operation and workstation load, so when a worker is not packing an order, he has time to restock shelves or conduct an inventory
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To encourage workers to see robots as companions, each unit is given a different name by an Amazon employee, and the name is entered into the system, so workstation
workers can refer to them by name instead of a serial number
Amazon's automated warehouse systems with spinning robots can be seen at some storage facilities or on car manufacturer's assembly lines But the challenge facing the
e-commerce supply chain is very different from the challenge of the assembly line in a
factory
On an assembly line, robotics are used to repeatedly move selected pieces to build the same car over and over again For Amazon — like other retail fulfillment operations
— every online order is unique Web retailers manage thousands, and sometimes
millions, of different products, all with varying weights, sizes, and shapes
11.4 The effect of Kiva robot on Inventory
Kiva built a highly reliable system from electromechanical components and manufacturing processes with carefully planning and executing product development with
a cost-efficient manner, which focused on satisfying customer needs and wants that were
both varied and changing
On account of sensitivity which moved from the subsystems and processes that are expensive to make exact, to parts whose accuracy can be guaranteed at a low cost This
permitted us to design extremely dependable robots that can convey loads ranging from a
few kilograms to half a ton, with changing mass distributions, at quick speeds without
hitting one another
Moreover, by approaching a lot of information,, we were able to design model-based adaptation that improves the performance of the robots over time, while at the same
time providing us with important diagnostics and health metrics
11.5 The advantages and disadvantages of Kiva robot in Inventory
The improvement of cutting edge mechanical technology emphatically affects logistics As an ever increasing number of robots enter our inventory, arranging focuses
and even assistance with final-mile conveyance, the cooperation with robots will tackle a
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few squeezing difficulties - including work accessibility, making the logistics supply
network quicker, more secure, and more productivity Normally, inventory receives, stores, preserves, retrieves and delivers a large number of items on an every day or week
Along these lines, inventory systems are being continuously revised to accommodate a
continuous flow of products in logistics
Today, in almost every aspect of the logistics process, robots and mechanization improve efficiencies, from the inventory to the customer’s door Here are some of the
substantial and clear advantages of receiving advanced mechanical systems in the
logistics industry In an inventory, various processes should be running at a steady pace to guarantee efficient order fulfillment As innovation progresses, business directors are utilizing applications, advanced administration systems, and tech tools any place possible
to expand productivity and alleviate cost There are some undeniable beneíits to doing this, however there still can exist some drawbacks to utilizing mechanization, as well
❖Advantages:
1)To improve the functioning effectiveness Kiva adopts intelligent robots for inventory navigation effectively improves the performance of the system is raised 8 times
than before Most of the work in Amazon's inventory uses robots to do the job From the
primary signs sent by a PC, which items are brought down from the rack to the sequence
of packing, waiting, loading and unloading onto the vehicle Everything has robot footprints
=> guarantee congruity for the production and distribution of products
2)To save the labor cost Kiva robots can move around in the inventory, snatch and mobile shelves loaded up with items and container.This hi-tech can help retailers to
minimize employees complete online orders all the more rapidly and can undoubtedly monitor enormous amounts of stock without huge labor Hence, the organization can save bunches of money since they will not need to pay money as wages Additionally, robots
can work every minute of every day, so your inventory will not at any point need to close