Supply Chain 2
How Amazon Started the Robotic Arms Race
If you were to enter an Amazon warehouse, it is whirlwind of activity. You will come across workers everywhere piling items onto large black and yellow crates. Tall hydraulic arms haul heavy boxes to place them on rafters. What you may also see are a mass of chunky orange robots sliding along the floor, also stacked with boxes brimming with fashion to sports gear.
These are the very well-known Kiva robots, who once were an innovation that promised big things for the automation of inventory management. Amazon purchased their robot armies for w hopping $775 million in 2012. The acquisition elevated Amazon’s CEO Jeff Bezos to the head of an entire industry. He chose to reserve his robotics forces for the sole use of Amazon, effectively stopping Kiva from selling their products to warehouse operators and retailers who used this technology for speedy warehousing and distribution.
Since Kiva was the only player on the market, they were left with no choice. In the present environment, a few startups are gearing up to take off where Kiva left and arm warehouses around the world with new robotics. Amazon’s bots has already proved that robotic technology is indeed a better solution for the supply chain.
However, the new bots that are available look different, this could be attributed to the fact that it is still a nascent industry and partially due to patents. These bots can perform a wide variety of tasks like using mechanical claws to life items off shelves while others have touch screens for automated inventory checks. IAM Robotics’ Swift has been making waves. It is an autonomous mobile picking robot which comes equipped with a 3D item scanner and SwiftLink fleet management software.
Nevertheless, all of these bots are to aimed at fulfilling orders and to get your deliveries to your doorstep easy and quick.
What is the Real Challenge with Omnichannel?
A study conducted by JDA shows that 71% of CEOs consider omnichannel fulfillment to be the future of the consumer goods industry. However, only 19% are able to profitably translate this vision into reality.
Why the supply chain is top priority
Findings have shown that consumers are induced to buy when offered seamless shipping, delivery and returns. These are the key factors that drive the growth strategies of e-commerce ventures. Following these findings, fulfillment has gone to the top of retailers’ lists, with merchants investing in transportation and logistics, delivery options, order management, inventory and returns management.
Regular online shoppers want a turbo-charged supply chain
Free shipping remains the most lurid reason, with nine out of ten shoppers claiming that to be the incentive for shopping online. Over time, this has become the singular most powerful objective for retailers over other logistics concerns, even same-day shipping gained brownie points. One-day shipping (69%) and free returns (68%) are also top persuasive factors for shoppers.
Bringing together in-store and online experiences
While e-commerce is obviously an integral part of our lives, studies show that shopping in brick-and-mortar stores remains a clear preference, though some shoppers showed an openness to a blended shopping experience with physical and online shopping.
Although beacons have had a slow start, there is no mistaking that shoppers might be incentivized to the concept of the in-store experience online, virtual reality e-commerce – or v-commerce.
Sluggish adoption of mobile payments
Privacy and security are the key areas where consumers back off in using mobile payment applications. A greater change in consumer behavior is needed to make mobile payment transactions easier and profitable.
In time, consumer behavior and technology will need to be integrated for a more practical approach to e-retail.