Amazon Robotic Service (ARS)
Amazon Robotic Service (ARS)
PDXScholar
Summer 2021
John Mareena
Portland State University
Jin Fenny
Portland State University
Kandula Swapna
Portland State University
Ketsaraporn Kaewkhiaolueang
Portland State University
Part of the Operations Research, Systems Engineering and Industrial Engineering Commons
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Citation Details
Girija, Patil; Mareena, John; Fenny, Jin; Swapna, Kandula; and Kaewkhiaolueang, Ketsaraporn, "Amazon
Robotic Service (ARS)" (2021). Engineering and Technology Management Student Projects. 2309.
https://pdxscholar.library.pdx.edu/etm_studentprojects/2309
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E GINEBUN1G&TEGHNIUOGVMANIA1GEMENT
WAREHOUS ROBOT-AS-A-SERVICE
AUTONOMOUS MOBILE ROBOTIC
ROBOTS (AMR) PICKERS
1
Table of Contents
Abstract 3
Mission Statement 3
Introduction 3
Market Need 6
Market Trend 7
Market Opportunity 8
Market Research 10
Competitor Analysis 12
Target Customers 16
Market Strategies 18
Product Strategy 18
Pricing Strategy 19
Promotions Strategy/Marketing 19
Appendix 26
References 29
2
Table of Figures
3
Abstract
Warehouse robots are the most effective replacement to minimize the pressure and availability
of manual labor. The warehouse robots are mainly used for heavy lifting, picking up packages,
transporting, and other tasks in the facility. The growing market of Internet of Things, Artificial
Intelligence, and machine learning in the warehouse industry is forecasted to grow in the robots
market in the near future. In order to build the final product i.e technology roadmap our team did
market research, analysed competitors for the company, identified target customers, analyzed
market, product and pricing strategy and at the end came up with the Technology Roadmap.
Mission Statement
Our mission is to propose to Amazon to add a new branch to their service department called
Amazon Robotics Services. They could either provide Robots as a service or rent the robots to
small to medium-sized companies. We think that Amazon could make use of the AWS service
which they already have with Robotics technology. We are coming up with the Technology
roadmap for Amazon to deliver this ARS in the next 2-5 years.
Introduction
The main purpose of Amazon bringing the automation in the warehouse was not to eliminate
jobs but to automate tasks so that companies could reassign their people to build new
technology or new products.
With the increase in demand for products Because of changing trends, Amazon needs a robotic
system to supercharge its order fulfillment process and make same-day delivery a widespread
reality.
In 2012, Amazon spent $775 million to purchase a young robotics company called Kiva
Systems that gave it ownership over a new breed of mobile robots that could carry shelves of
products from worker to worker, reading barcodes on the ground for directions along the way.
4
Figure 1: Kiva Robots [2]
The original Kiva: This is the orange color robot initially called DU1000 because they are
capable of 1000 pound lifting capacity. These robots are called Amazon robotics now, but most
people know them as Kiva robots. These robots are used for moving pods and shelves faster
and cheaper. Each robot is about 75cm long and 60 cm wide (2.5 by 2 feet), and it fits nicely
underneath a pod that measures roughly 1x1m. Each robot is only 30cm (1 foot) high, weighs
around 110kg (250 pounds) and it can lift 450kg (1000 pounds). The robots can move 5 km/h (3
miles per hour) or walk comfortably [2].
The Hercules: These robots were introduced in 2007 and they were called DU 3000 since they
have a 3000-pound lifting capacity. The Hercules are designed for heavy lifting. These robots
are similar to Kiva robots, but they are capable of lifting much more weight. The Hercules are
larger as compared to their original robot, and they have larger pods [2].
The Pegasus: They were named pegasus after mythical winged horses. They perform similar
tasks compared to Kiva. However, they are only 19 cm, 10cm less than the original Kiva. That is
why they have more space to store stuff. It can lift 560 KG, and they have only half the parts and
are very economical. There are speculations that Amazon will use these robots in their new
fulfillment centers, especially close to the city centers. The beliefs are that these robots would
have more work in the high-density population areas and the robots need to get the assigned
tasks done faster. With high efficiency, this would allow more products to fit into a warehouse
and reduce investment costs [2].
The Robostow: These are the "normal-looking" robots who do not move from the place
because they are installed in. The Robostow are bought from third-party vendors, and they are
used to move the pallets around. The Robostow are found in many fulfillment centers [2].
5
Drones: Amazon has plans to use them to deliver packages the last mile from the warehouse
to the customers. They are right now in the testing phase. These drones can fly up to 15 miles
carrying 5 pounds. They will be tested more over the coming years before being implemented in
delivery services [2].
Our market research identified the Global Robotics market segmented by robot type, function,
end-users, and geography shown in the picture. The type of robots is classified into SCARA,
cylindrical, parallel, mobile, cartesian, and stationery articulated robots. Among these robot
types, mobile robots are most popularly used in 2017, followed by articulated robots. The
primary reason is that mobile robots are smart and autonomous. The growth of warehouse
house robots is due to the increase in e-commerce, food & beverage, pharmaceutical, and
automotive industry.
The robotics market is categorized into pick & place, assembling, disassembling, transportation,
and packaging based on function. The most used function by warehouse robotics is the pick &
place, followed by packaging. The transportations' function is growing more complex due to the
growing demand for mobile robots and increased use in various e-commerce, food & beverage,
metal & machinery, pharmaceutical, and automotive industries.
Based on the end-users' perspective, the warehouse robotics market is segmented into
e-commerce, automotive, food & beverages, electronics & electrical, metal, pharmaceuticals,
and others. Among these, the E-commerce industry uses the most warehouse robots, followed
by the automotive industry. The demand for same-day delivery or pickup increased the use of
warehouse robots for packaging, palletizing, and transportation in the food and beverage
industry.
The warehouse robotics market has been segmented based on geography as North America,
Europe, Asia-Pacific, and LAMEA. North America is the most dominant and largest in the
warehouse robotics market, which accounted for $805 million in 2016 [3].
6
The Asia-Pacific market is the fastest-growing warehouse robotics market due to increased
e-commerce, food and beverage, metal & machinery, and automotive industries in China, South
Korea, and Japan [3].
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Market Need
COVID changed the customer purchase behavior, and the customers are now inclined more
towards online ordering. This trend has pushed retailers to compete to provide better customer
service. Better customer service would demand more inventory transparency, quick delivery
cycles, etc. Online retail sales increased 32.4% year over year in 2020 and are up 39% in Q1
2021 [4]. According to industry experts, the demand is going to increase further. Retailers have
reacted to the situation by increasing the inventory levels to hedge against future disruptions.
7
Experts suggested that businesses in the long term may increase inventories by 5-10% to
minimize the risk of demand shocks [5].
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The retailers and 3rd party logistics companies realized that there is a need to add more
warehouse capacity to manage inventory and achieve fast fulfillment rates. The capacity will be
spread out in smaller, more local, or decentralized warehouses to meet the customer's delivery
expectations. Analysts predict that 1 billion square feet of demand for warehouse space by 2025
owing to e-commerce sales will reach $1.5 trillion by 2025 [6].
With an increase in warehouse space, there is a need to make these facilities more
operationally efficient to meet order fill rates. With the adoption of warehouse technologies like
warehouse management systems, automated picking tools, automated guided vehicles, and
automated inventory control platforms, IoT platforms are rising. These technologies would help
mitigate issues like labor availability, inventory inaccuracies, slower picking processes, etc.
The commoditization of technologies like cloud computing, 5G, Internet of things, which are the
backbone to develop automated warehouse robotic tools or devices, pushed more companies to
offer solutions in this space. Also, customers started to view warehouse technologies as
necessary investments to achieve operational goals and meet customer demand on time.
Warehouse automation is a space to thrive in the coming years, and there is a good market
demand for the right solutions.
8
Market Trend
To meet ever-growing customer expectations and improve operational efficiencies, retailer and
e-commerce companies are looking towards Autonomous Mobile Robots (AMRs). These
robots are used to pick, transport, and sort items within the distribution facilities without any
manual intervention. The AMRs leverage the vision cameras, sensors, integrated warehouse
maps, and execution software system to perform various operations.
2016 2017 2018 2019 2020E 2021E 2022E 2023 E 202 E 2025 E 2026E
Amazon, the pioneer in warehouse robotics, started using AMRs for cases where strenuous
movements of goods were needed. This strategy helps to prevent injuries and promote
warehouse safety for workers. By 2025, it has plans to invest over $300 million into safety
projects using Autonomous Mobile Robots (AMRs) [8].
9
Market Opportunity
.
1- Largest Market
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10
Online Grocery has unique needs to fulfill orders quickly - within hours of order placement,
looking towards building decentralized warehouses, automating the locations with the help of
warehouse technologies.
The number of new automated micro-fulfillment centers is growing at a tremendous rate in the
United States. This gives a significant market opportunity for Amazon Robotics to provide
warehouse robots (Kiva robots) for MFC automation in a fulfillment-as-a-service model.
Market Research
SWOT Analysis:
The SWOT analysis in Fig.7 provides thorough research on Amazon RaaS. Amazon has
undoubtedly improved its efficiency and safety and can automate inventory flow at Amazon
fulfillment centers by using Amazon Robots. Amazon Robots are built with Artificial Intelligence
and Machine Learning(ML) to automate the critical functionalities at the Amazon warehouse.
The Kiva robots (Autonomous Mobile Robot), the Little Orange Robot and busiest employee at
the Amazon fulfillment centers, which are capable of moving shelves or pods around the
warehouse for faster and cheaper stowing and picking.
The lack of knowledge in interacting with the robots and job displacement are major challenges
that could affect the warehouse robotics market. The other challenge is that the robots still
cannot compete with humans' intuitive knowledge when they need to identify items in a bin.
11
Figure 7: Amazon Robots SWOT Analysis [ 10-11]
ANALYSIS
• Quick Implementation • Robots might need to • Increase online sales • Risk aversion to new
• Improves speed of be customized to suit to leading to more technologies
operations the need of each warehouse space • Existing Competitors
• Avoids Labor shortage warehouse • Adoption of Robots • The lack of awareness
issues • Initial capital costs to improve human safety along with the
• Easily Scalable implement the Robotic in warehouse complexity in
• Warehouse picking service platform • Market needs across interacting with Robots
process will become • Hardware upgrades industries and
intelligent with Robots might take more time regions
• storing/sharing lot of data and effort • Using technologies like
about items being picked cloud computing, 5G,
• Replaces strenuous Internet of things to
activities increases safety develop automated
• Clients cannot be tech warehouse robotic
savvy to adopt and use tools or devices
Robots
Competitor Analysis
Amazon has gained a competitive advantage by purchasing a robotics company -Kiva Systems.
This move gave Amazon the technical foundation to build new warehouse robots. Today,
Amazon has 200k mobile robots working at their warehouse centers. These autonomous mobile
robots are mostly used to pick, transport, and sort items within the distribution facilities without
manual intervention. The global key players in making autonomous robots and providing them
Robot-as-a-service are Ronavi Robotics (Russia), 6 River(USA), Fetch Robotics(USA), Geek+
Robotics(China), InVia Robotics(USA), Locus Robotics(USA) and Magazino(Germany) [12].
The thorough competitor analysis of autonomous mobile robots is as shown in Figure 8. Here
we compared amazon’s autonomous mobile robot, the Original Kiva with the seven significant
competitors.
12
Figure 8: Competitor Analysis [12]
Name Country Price Function Payload Areas Operatio Picking Used to Battery Go
Has
Capacity served nal Efficiency run live in RaaS
Speed time(ho
urs)
Ronavi
Per
Robotics Towing,
transacti Pick/Fetc 300-350 4-5
Russia 1500 kgs Europe 1.5 m/s Lifting, 6 Yes
on/per h Robot pcs/hour weeks
Picking
pick
6 River US$250
Put away,
K for 8
300-400 picking,
robots Pick/Fetc North 4-6
USA 160lbs 3.0 m/s Counting 7 Yes
(1st yr) + h Robot America pcs/hour weeks
$50K/an
nual
Fetch
annual or
Robotics picking
monthly Pick/Fetc 500-1500 North 200-300pcs 2-3
USA 2.0 m/s &removal 8 Yes
license/r h Robot kgs America /hour weeks
Recycling
obot
Geek+ Per
2.0m/s 300-600 Towing, 6-8
Robotics transacti Pick/Fetc 3-4
China 1000lbs Asia Lifting, Yes
on/per h Robot pcs/hour weeks
Roller,
pick
13
Battery
Operatio Has
Payload Areas Picking run Go
Name Country Price Function nal Used to RaaS
Capacity served Efficiency time(ho live in
Speed
urs)
Locus
Robotics annual or
400-500
monthly Pick/Fetc North Faster 4-5
USA 4 2 m/s 6 Yes
license/r h Robot America pcs/hour Picking weeks
obot
InVia
Robotics
200-300
10 cents Pick/Fetc North Lifting, 1-2
USA 40lbs 25 m/s 10 Yes
per pick h Robot America Picking weeks
Pcs/hour
14
We were able to rank the price, quality, customizable product, unique feature, scalability, safety,
compact structure, intelligent scheduling and customer service based on the competitor analysis
on a five-point scale (5 represents very strong, 1 represents very weak) in Figure 9.
Low Price 4 3 4 4 4 4 5 4
Superior 3 4 5 5 4 3 4 5
Quality
Customiza 4 4 5 5 3 5 4 5
ble product
Unique 3 4 5 4 5 4 5 5
Feature
Scalability 3 4 5 5 5 4 4 5
Safety 4 5 4 5 5 4 3 5
Compact 5 4 5 5 4 4 3 5
Structure
Intelligent 4 3 4 5 5 5 4 5
scheduling
Customer 4 5 4 4 5 3 3 5
Service
15
From the radar chart shown in Figure 10, Amazon’s Kiva Robot gains advantageous position in
almost all the features.
Title
Low Price
5
Compact Structure
Target Customers
Some of the customers that Amazon should target for providing ARS (Amazon Robotics
Service) includes customers from the following industries:
● Logistics: Material transportation is a labor-intensive task. AMRs can take over the
repetitive and non-value-adding tasks within productions and shipping facilities, freeing
up employee time and enabling them to focus on more important work. AMRs are widely
used to transport material and orders across warehouses and/or shipping facilities [13]
● E-commerce: Typical e-commerce tasks like order fulfillment, returns handling, material
transport, and inventory management can be easily performed by AMRs. Since multiple
accessories can be latched onto the AMR platform, their flexibility makes them suitable
for specific applications like sortation. In addition to the flexibility offered, another vital
consideration for e-commerce businesses today is safety, particularly given the ongoing
pandemic. Safe operations call for measures to protect employees as well as prevent
packages and products from being contaminated. Solutions integrated with robots can
automatically change pallets of sorted items, providing uncrewed, continuous and safe
operations [13].
16
● Warehousing: Distribution centers and warehouses can be massive, with the average
warehouse in the United States spanning across an area of more than 25,000 square
feet [13]. In warehousing, AMRs are best suitable for heavy lifting and goods
transporting applications. By utilizing AMRs for essential warehousing operation saves
time and sequencing movement ensures maximum efficiency. Automating warehouses
also allows for scalable operations depending on fluctuating demand [13-15].
AMRs integrated with accessories such as robotic arms or conveyors can help in the
production process in addition to transporting in-process parts and finished goods.
Mobile manipulators or cobots which are AMRs with robotic arms, for example, can sort,
pick, and pack products while also moving dynamically to multiple locations [13].
Static conveyors are typically used in line work to help accelerate production and sorting.
By adding a conveyor to an AMR, conveyor capabilities become more flexible and
mobile. AMRs with built-in conveyors can be linked to static conveyors to move products
more efficiently throughout a facility. AMRs equipped with attachments that can lift
pallets and connect to carts enable the robots to load/unload payloads and, in some
cases, connect to carts without the need for human intervention. This combination of cart
transport and loading/unloading in a single AMR is a relatively new capability, but it will
open up new possibilities for autonomous robots [13].
17
Porter’s Five Forces
Porter's Five Forces is a simple framework for assessing and evaluating the competitive
strength and position of a business organization. Following is the analysis of Porter’s Five
forces:
● Threat of New Entrant: The threat of new entrants is low as it would require huge
investments for procuring robots/systems needed for automating warehousing. Amazon
has an advantage over other brands on economies of scale because of its large number
of fulfilment centers and logistics capabilities. Although new robotics service providers
can enter the market, they will not be able to benefit from economies of scale to the
same extent as Amazon.
Market Strategies
Product Strategy
The team’s initial goal is to develop a technology for Amazon to deliver Amazon Robotic
Services (ARS) in the next 2-5 years. In order to do this, the team has decided to focus on a
technology roadmap for improving and increasing Amazon Robotic Services (ARS) performance
and will be providing Warehouse Robotics as a Services (RaaS) or the Robotics Rental
Business for small E-commerce companies. The team has brainstormed some new technology
features such as Artificial Intelligence, Mobile Access, Predictive Maintenance, Warehouse
on-demand and Wearable computers. Those features will be useful for Amazon to advance their
future robotics warehousing.
18
Amazon’s Robotic Fulfillment Center where they are using robots to assist employees with tasks
like carrying shelves of products from worker to worker across massive warehouse spaces,
reading barcodes on the ground for directions along the way to travel in place of workers.
Amazon has set up their intelligent warehouse based on the Kiva system.
The Kiva System robot is making inventory items come to the warehouse workers and they can
fulfill orders faster. It has a computer cluster to keep track of all robots and racks on the floor,
and it can be used for resource-allocation algorithms efficiently. Moreover, it provides hundreds
of mobile robots to bring inventory to warehouse workers and save them from walking daily
marathons. However, some E-commerce companies are struggling with the problem of order
handling inefficiencies in warehousing. To solve this problem, some E-commerce companies
employ the Kiva robot fulfilment system to enhance order picking efficiency, improve customers
services and reduce operational costs. As far as how to increase the awareness, the team will
be advertising directly to the target market via social media and other outreach advertisements.
Pricing Strategy
Based on our competitor analysis and Amazon’s brand success, we determine that Amazon
RaaS services are a full-service warehouse automation solution, and this service would be
positioned as a premium pricing service. The reason is that not only does Amazon provide the
robotics hardware, it also offers additional AWS services that other robotics services do not
provide. Amazon Robotics Services would be a one-stop warehouse automation solution for
many customers in different industries. Comparing other company’s offerings, Amazon Robotics
Service will offer one price to the customers and this price will cover the annual maintenance
cost and supportive software cost. The price for each robot is estimated to be $50,000 for the
first year and later on being a monthly subscription charge(pay-as-you-go model). Even though
Amazon RaaS will be a complete turnkey solution, Amazon robotics services will provide
employee training to help the staff be familiar with the system for the first three months. After the
training period, the system will be handed off to the warehouse managers and operators. The
supporting personnel from the Amazon side will transition into 24/7 remote support with weekly
or monthly client meetings and back-end equipment monitoring[16].
Demand Generation
Since Amazon has already established its brand identity, it doesn’t need to spend additional
money on increasing brand awareness. However, for the success of Amazon Robotics Services,
it is crucial to reach out to potential customers by correctly identifying and outlining their buyer
personas. By implementing native advertising and sponsored content on the platform, potential
customers will be introduced to Amazon's technology and services. When potential customers
have enough interest and consider implementing ARS technology, they will be provided with
logistics experts and consultants to discuss the consents. Experts will then assess the current
warehouse’s needs and later offer specific recommendations tailored to match the warehouse
schema. To continue and strengthen ongoing partnerships with existing customers, the account
manager, and the customer service teams will make iterations and service adjustments through
19
customer feedback and ensure customer satisfaction. Here we list out different ways for
conducting B2B promotion and marketing campaigns to reach potential costumes in Figure 11.
The physical sales channels would include trade shows, conferences, demonstration rooms as
these environments would give the customers a more immersive experience to see how a
warehouse could be transformed. Customers can make more requests and modifications based
on the company’s needs and other opinions from experts. Once the contract is finalized,
20
door-to-door delivery will be scheduled for robots and other machinery delivery in 4 weeks.
Because no new infrastructure will be needed from the customers’ side, this would be a quick
and agile implementation. Amazon RaaS will also allow customers to quickly scale up and down
based on seasonality or other factors.
Technology Roadmap
Based on our research and analysis results, the first layer we came up with is the drivers, which
had two parts: Internal market drivers and External market drivers. These drivers were identified
from market and industry analysis, market segmentation, changes in technology, SWOT
analysis of the business, and customer requirements. We identified varieties of drivers through
brainstorming, market research, and analysis. Then we prioritized them according to the
importance of the business into a list of 20, as seen in Figure 12. The priorities were determined
by peer review and research analysis [20].
The second layer consists of the product and features aligned with the current and future drivers
identified above. This is followed by technologies that enabled Amazon to achieve the
products/service and the strategic direction Amazon needs to take to acquire and develop future
technology to support the development of its future offerings. The QFD technique was applied to
calculate the scores (obtained by the product attributes and market drivers after analyzing their
relationship as well as technology on product attributes). This technique was used to condense
the information and provide a simple visual comparison of priorities across the tables. The
weights assigned to the drivers at the top of the spreadsheet in Figure 13 are based on the
team’s conclusion of the analysis performed on the market drivers and their respective
prioritization. The weights in the Products vs Technology QFD seen in Figure 14 is from the
result of Drivers vs Products QFD [20].
The fourth layer is the resources in place that would help Amazon close the gap between
current and future technology. Finally, we mapped the drivers to products and services,
technology to products and services, and resources to technology. All the information in the
research and analysis steps were gathered, and a technology roadmap was built for current,
present, and future timelines. Integration and alignment between layers were finalized by peer
review and market research [20].
21
Figure 12: Drivers [21-49]
Label Driver Definition Weight
No need for onsite warehouse servers. Customers can
D1 Data storage utilize the cloud storage to access data at any point of 4
time from any location
22
Figure 13: Drivers vs. Products QFD [21-49]
Drivers
Collabor
Lower atlons Wearable Modular and
Data Prescriptive Inventory Susta lnabll lty/ Waste Pandeml Business Labor Augmented
Data storage margin of Accesslbll lty Big Data and Trends Profit margin Wireless Plug-and-Play Blockchaln
Analytics Analytlcs management Rechargeable management C Expansion Shortage Reality
error partners technology Solutlons
hips Score
Rank Weights 4 4 2 4 4 2 4 2 2 2 4 2 4 2 2 2 4 4 2
•
-------,
Amazon Inve ntory
Management Softwares
4 4 2 4 2 1 4 4 2 1 1 1 4 2
1 4 2 2 140
Cloud computing 4 2 2 4 4 1 4 2 2 2 4 1 1 4 4 4 1 2 2 148
.........
------, Tech vest 2 4 4 2 2 4 2 2 1 1 1 1 2 4 2 1 1 2 2 112
Robots 4 4 4 1 2 4 4 4 2 4 4 1 4 4 4 4 4 4 2 182
:I:::: Logistics
Amazon w arehouse
4 4 1 2 4 1 1 4 1 2 2 2 4 2 4 1 1 1 1 128
4 4 4 2 4 4 2 2 1 1 1 1 1 2 2 1
Slmulator 4 4 4 4 146
f---
1 RAAS 4 4 4 4 4 4 4 2 4 1 4 1 1 4 4 4 4 4 4 188
~ Communication 1 4 1 2 2 4 1 1 1 1 4 4 1 4 4 1 1 1 1 110
f---
Wearable sensor and
11 1 1 2 1 1 2 1 2 1 1 2 2 2 2 2
smart glasses 2 4 2 2 92
10
f---
Warehouse Drones 1 1 1 1 2 2 1 2 2 2 2 4 2 2 2 1 2 2 4 96
......,-
12
f---
Optlcal Recognition
Smart Storage
1
4
1
4
1
2
1
4 4
1 2
1
2
4
2
4
1
1
1
1
2
1
2
2
2
1
2
2
1
4
4
1
2
1
2
4
2
4
88
144
Sustainable packaging
13 1 1 2 1 1 1 1 2 4 4 2 4 1 2 2
materia l (future) 1 1 1 1 84
Amazon Amazon
Wearable sensor Optical Sustainable
Invent ory Cloud Warehous Warehouse
Techvest Robots Logistics RAAS Communicatior and Smart Recognit io Smart Storage packaging Score
Management computing e Drones
glasses n material
Softwares Simulator
(future)
Rank Weights 2 4 2 4 2 4 4 2 1 1 1 2 1
2 Big Data 4 4 2 4 4 4 4 1 1 1 1 2 1 94
>----
1-Click, Wireless
technology, and
4 4 2 4 4 2 4 1 1 1 2 2 1
machine-to-machine
3 communication 87
23
Figure 15: Technology Gap Analysis[21-49]
Current level Where we want to be Gap
Ablility to learn, adapt, and
Deep machine learning, Image segmentation,3-D printing.Virtual reality provide resu lts quickly and
IRobotics Big Data, Arificial Intelligence, Predictive Analysis, Machine Learning (VR),optimize operation accurately to new changes
Security and Privacy issues
Ioperation 1-Click, Wireless technology, and machine-to-machine commun ication Low powered, wide-area network connections, 5G yet to be solved
Sensor utilizations allow
real-time feedback to the
Nano technology connect to sensors; Able to work autonomously in the control system , inferring
same manner; Predictive maintenance for machines and devices will desired the result sooner;
Electronics Sensors, Laser sensor, lo T sensors become increasingly more efficient, easier, cheaper, and improve uptime more complex detections
High energy comsumption
IBlockchain Cryptography, Data authentication, Data validation Smart con tracts, identity management, supply chain uses and scaling issues
Goods-to-Person (GTP),Automated Storage and Retrieval Systems Safety, payload capacity
(AS/RS),AGVs,AMRs,Voice Picking and Tasking, Automated Sortation restrictions and political
IWarehouse automation Systems, Pick-t o-Light and Put-to-Light Systems Warehouse Drones , Cobotics acceptance
Coverage holes/ gaps, keep
IInformation technology Data retrieval, Transmission and networking Seemless connection, no delays or interference signal strength high
Package is excessive and
IPackaging Technology Traditional packaging material(carboard box, recylcab le paper) Su stainable packaging material wasteful.
24
Figure 16: Technology Roadmap
Current 2023 2026
Data storage, Lower
Technology
~
>
~ Productivity
.; Economic
DRIVERS i Pand
Social
Environmental
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lntelligence, Predictive Anal~is, Machine Learning
Deep Machine Le aming
Robotics Image segmentation
3-0 printing
Operation 1-Click, Wireless technology, and machine-to-machine communication
Sensors / Laser sensor
Electronics Nano Teclinology
TECHNOLOGY
Blockchain Cryptography, Data authentication,Data validation
Warehouse Goods-to-Person {GTP),Aut omated Storage and Retrieva l Systems (AS/RS),AGVs,AMRs, Voice Picking and Tasking, Automated
Automation Sortation Systems, Pick-to-Light and Put-to-Light Systems
IT Data retrieval, transmission and networtdng
Packaging , ustainable packaging
Technology
Amazon Business
R&D
Material Management
RESOURCES Human Capital
loT
Amazon Robotics
Patemships
25
Appendix
Market Opportunity - TAM,SAM,SOM
$40B
$30B
$20B
$ 10B
$OB
2020 2023 2026
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Figure 19: Service Availability Market(SAM)
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27
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