In the world research team X, we spend most of our time conducting primary and secondary research. We meet decision -makers in the sectors, read research on the market and subjects and produce our own analyzes and unique ideas. However, while powerful long -term trends continue to evolve and disturb large segments of the world economy, we think it is increasingly precious to see these themes in action. This is why we decided to add another dimension to our process: research on the boots in the field that we call Themed laboratory.
What themes are inside an electronic commerce production center? Robotics, internet of objects and even video games
Last week, we left our Manhattan office to visit Robbinsville, New Jersey, the Amazon execution center. By pulling, the giant of 1.2 million square feet (approximately the size of 21 football fields) was a site to see about a quarter of a mile long, 900 feet wide and three floors. It is the first of the seven centers built in the region and one of the more than 200 worldwide. Together, these warehouses send 2.5 billion packages per year.1
Filled carefully in the establishment were 14 miles of conveyor belts, quickly moving zone area items. A colored ribbon and bar codes have been glued to the ground, serving as digital signaling panels for the many moving robots. And although there are many human workers present, hundreds on a given quarter of work, connected robots, mechanized operations and even video games have saturated the space – all in order to improve efficiency.
How exactly the execution center works to distribute products in the northeast? Humans and machines collaborate to carry out a series of tasks, including storage, selection, packaging and shipping.
Storage and picking
The storage phase: This phase begins the inventory of automated magic on the point of taking place. Amazon partners take incoming items from the delivery truck and put them in bins stacked in yellow towers called “pods”. Different from the organized storage system that you could find in your local retail store, items are placed in random bins – Amazon Office Supplies, a seller’s bicycle pump and a Halloween costume could all find itself hypothetically in the same tank.
The two pods and bins in barcodes that store information on their content. Thus, despite chance, computers can instantly locate the inventory.
Hundreds of pods occupy a single fenced grid, each seated at the top of a Kiva mobile robot. These turns equipped with robot move independently in an orchestrated dance, reading 2D bar codes glued to the ground which tell them where to go – on a picking station, return to storage or to be replenished.
The picking phase: This is where the items are removed from the shelves once they are ordered, so that they can be sent to another destination. Here’s how it works:
- An Amazon Associate Mans a picking station and a computer monitor in front of them displays the element they need to choose from a pod. Simultaneously, the pod holding the article arrives at the picking station via a robot, and a projector illuminates the exact place on the pod where the partner will find the article.
- The partner chooses the article on the pod and places it in a box, called “tote”. Each partner has a series of bins in front of them and above each tote is a button. A brilliant button indicates that the element must be deposited in the corresponding tote, and once the partner does it, they push it.
- By pressing the button, the monitor displays a new element and the process is repeated. When the partner judges a tote as well as full, they push it on a carpet belt and an empty tote automatically replaces it. Each tote is coded with bars, indicating what is the next destination for the tote and keeping the element guard chain.
- Conveyor belts send boots to a myriad of sites: packaging, other areas of the building or other execution centers. Amazon uses forecasting and modeling tools to predict where items are or will be the most necessary, so “chosen” items are not always purchased.
- Optional: the selection of partners can participate in the monitoring of gamified performance, where they compete with other partners. Associates accumulate points when they choose objects on the shelves, animating an avatar on a separate video game display.
Disruptive technologies involved
- The Internet of Objects: Bar codes found on bins, pods, bins and on the ground through the storage grid are part of an Internet object system. The connected optical sensors read and transmit information on where the elements are and where they must go. Centralized computers and picking station monitors are also part of this system, communicating with sensors, robots and other connected devices to facilitate the operation.
- Robotics: Kiva mobility robots and conveyor belts receive instructions from the various IoT systems in play. The sensors integrated into conveyor belts also guarantee the items at the right destination.
- Games: The follow -up of gamified performance gives employees a way to stay busy and / or can make it possible to improve or work their full potential.
- Artificial and big data intelligence: The massive activity of presence and online electronic commerce from Amazon gives them access to sets of data from robust consumption models. The AI can process this data, allowing the retailer to optimize its realization operations. In addition, ATM based on AI plays an instrumental role in obtaining objects in the pods and in front of the pickers.
Packaging and shipping
The packaging phase: The items arrive in packaging stations in bins, ready to be packed by partners. Packers withdraw the items from the bins and pack them in boxes. A computer indicates that packers of what box size use (on 20 options) depending on the element (s) and automatically distributes the exact amount of band required. After filling the box with bubble paper, the packages seal the box, apply the bar codes and put it on a treadmill for shipping.
This phase, and others are constantly entirely reduced. The tape recorders and computers do their best to guarantee optimal execution, but partners must use their own judgment for part of the packaging process.
The shipping phase: This is the final phase which completes the dance of synchronized realization and requires little human intervention. The boxes of the packaging stations make their way to the machines (scan, label, apply, demonstrate). The scanners read the bar codes on the boxes, communicating wirelessly the dimensions and the shipping instructions for the labeling machines. These machines then print the labels and stick them on boxes with precision, while while conveyor belts maintain quick speeds.
Finally, the boxes descend the conveyor’s belt and are automatically sorted by shipping method and final destination.
Take -out
The Amazon execution center highlighted the advanced state of robotics and automation, as well as the continuous need for human work and expertise. From IoT to robotics and AI, each technology has played an important role in the performance of the faster and more efficient production process. However, at the same time, humans continue to play a vital role in filling the gaps where robotics is less capable. We see this trend in robot-human collaboration accelerating in the short term. While technology continues to improve, many companies will seek to reduce costs and improve speed and precision thanks to mechanized systems, while taking advantage of humans for more complex tasks requiring problem solving or dexterity. While electronic commerce continues to increase sales, distribution centers such as Robbinsville will continue to play an essential role by facilitating the rapid and fast delivery of millions of articles to households in the country.
Related ETF
Bootz: THE Global X Robotics & Artificial Intelligence ETF (Botz) seeks to invest in companies that potentially benefit from increased adoption and use of robotics and artificial intelligence (AI), including those involved in robotics and industrial automation, non -industrial robots and autonomous vehicles.
SNSR: THE Global X Internet of Things ETF (SNSR) Allows investors to access a potential strong growth theme through companies at the cutting edge of IoT, an approach that transcends the classic regions of the sector, industry and geography to target this emerging theme. In a single business, SNSR offers access to dozens of companies with high exposure to emerging IoT technology.
Ebiz: THE Global Electronic ETF Seeking to follow the solective electronic commerce index, which focuses on companies positioned to benefit from the increased adoption of electronic commerce as a distribution model. This includes companies whose main activities are in the operation of electronic commercial platforms, the supply of electronic software and services and / or sell goods and services online.
HERO: THE Global X Video Game & Estors Etf Looking for investing in companies that develop or publish video games, facilitate streaming and distribution of video games or Esports content, have and operate in competitive esports leagues or produce equipment used in video games and esports sports, including augmented and virtual reality.
Miln: THE Global X Millennials ETA thematic seeks to invest in companies which have a high probability of benefiting from the power of increasing spending and unique preferences of the generation of the American millennium (years of birth ranging from 1980 to 2000). These companies come from a wide range of categories, in particular: social media and entertainment, food and catering, clothing and clothing, health and physical form, travel and mobility, education and employment, housing and home products and financial services.
Click on fund names above to display the current assets of each fund. Conferences subject to a change. Current and future assets are subject to risks.