From the course: Digital Strategy
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Digitizing your value chain
From the course: Digital Strategy
Digitizing your value chain
- Warehouses perform one of the most important activities in Amazon's value chain. Powered by digital technologies, they are among the most automated in the world. Many of the aisles where the shelves store small items are called VNAs, or very narrow aisles, designed for robotic forklifts. Instead of workers walking miles each day to retrieve items, robots deliver them to the workers, thereby increasing the average worker's productivity three to four times. Unusual for a warehouse, robots store items on the moveable shelves in a seemingly random manner. Since the machines remember the exact location of every item, there's no need for all two-space tubes to sit on one shelf. Instead, items can be placed based on available space and retrieval speed. Thus, a two-space tube could be placed next to a board game and a kitchen blender. Complete knowledge of what's where in which warehouse enables Amazon's algorithms to let a…
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