Home > history, trends > Kiva – Ecommerce fulfillment disrupter

Kiva – Ecommerce fulfillment disrupter

HBR has a nice little article from the CEO of Kiva (now part of Amazon).

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Kiva, makes robots that turn warehouse fulfillment on its head (the robots bring goods to humans, rather than the other way around). A couple of things caught my eye:

  • ~50% of labor costs in a fulfillment center are attributed to people walking around (presumably to get the products from the shelves). Advantageous for retailers that are competing just on price and watching their pennies.
  • Kiva has been deployed in a bunch of retailers – Staples, Gap, Walgreens, Dillards, Saks, Toys ‘R’ Us etc. Given that almost every retailer now is directly competing with Amazon, Kiva’s acquisition by Amazon should give these retailers cause for concern
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