Last week Amazon announced New Robotics Fulfillment Center, a 630,000 square-foot fulfillment center, which is anticipated to launch in Tallahassee, Florida in late 2022. Amazon currently operates more than 50 sites in Florida that support customer fulfillment and delivery operations, including more than 10 facilities that launched in 2020. Amazon expects the six new sites to open in 2022.
Amazon Robotics, formerly Kiva Systems, is a company that manufactures mobile robotic fulfillment systems and provides ROBOTS to warehouse + Rivian, an electric vehicle company is funded by Amazon and Ford, supplies EV Delivery Vans + Amazon’s aircraft fleet is on pace to have doubled in size between May 2020 and June of this year. THIS IS A GAME CHANGER, with a goal "THE TIME TO FULFILL THE ORDER MUST BE MINIMIZED."
Amazon shares dropped 7% on the day of Q2 results after it forecast lower sales growth. PLEASE NOTE THAT AMAZON is RACING TO MEET DEMAND even though shoppers are venturing more outside the home and it is returning to a pre-lockdown sales trajectory. Last year, Amazon turned goods away from warehouses for weeks because IT LACKED PEOPLE and SPACE TO FULFILL THEM SAFELY. It still is playing catch-up, said Andrea Leigh, vice president at e-commerce optimization firm Ideoclick, who formerly worked at Amazon. "AMAZON IS RUNNING OUT OF AVAILABLE SPACE," she said. "THEY ARE RUNNING OUT OF LABOR."
AMAZON almost doubled its warehouse and transportation network in the prior 18 months, it sees significant investment ahead, not to mention costs from hiring and training staff. Amazon plans to add 517 facilities to its global distribution infrastructure in the coming years, according to logistics consultancy MWPVL International. That is 176 million square feet on top of the 402 million it already has. Amazon did not comment on the accuracy of those estimates but said its infrastructure rollout already is ramping up. Over the past 12 months, capital expenditures and equipment leases jumped 74% to $54.5 billion, almost double the growth rate a year ago.
That may be par for the course for a $1.7 trillion retailer that wants to get bigger. Credit Suisse analysts said Amazon's ramp-up in capital expenditures is more important than its revenue guidance. "The consumer responds positively to higher/faster service levels," they said in a note. "Unit volume accelerated following one day Prime delivery launch in 2Q19 – we believe it is only a matter of time before we see a similar impact as Amazon deploys fulfillment assets into the Holidays.".
Amazon Robotics, formerly Kiva Systems, is a company that manufactures mobile robotic fulfillment systems and provides ROBOTS to warehouse + Rivian, an electric vehicle company is funded by Amazon and Ford, supplies EV Delivery Vans + Amazon’s aircraft fleet is on pace to have doubled in size between May 2020 and June of this year. THIS IS A GAME CHANGER, with a goal "THE TIME TO FULFILL THE ORDER MUST BE MINIMIZED."
Amazon shares dropped 7% on the day of Q2 results after it forecast lower sales growth. PLEASE NOTE THAT AMAZON is RACING TO MEET DEMAND even though shoppers are venturing more outside the home and it is returning to a pre-lockdown sales trajectory. Last year, Amazon turned goods away from warehouses for weeks because IT LACKED PEOPLE and SPACE TO FULFILL THEM SAFELY. It still is playing catch-up, said Andrea Leigh, vice president at e-commerce optimization firm Ideoclick, who formerly worked at Amazon. "AMAZON IS RUNNING OUT OF AVAILABLE SPACE," she said. "THEY ARE RUNNING OUT OF LABOR."
AMAZON almost doubled its warehouse and transportation network in the prior 18 months, it sees significant investment ahead, not to mention costs from hiring and training staff. Amazon plans to add 517 facilities to its global distribution infrastructure in the coming years, according to logistics consultancy MWPVL International. That is 176 million square feet on top of the 402 million it already has. Amazon did not comment on the accuracy of those estimates but said its infrastructure rollout already is ramping up. Over the past 12 months, capital expenditures and equipment leases jumped 74% to $54.5 billion, almost double the growth rate a year ago.
That may be par for the course for a $1.7 trillion retailer that wants to get bigger. Credit Suisse analysts said Amazon's ramp-up in capital expenditures is more important than its revenue guidance. "The consumer responds positively to higher/faster service levels," they said in a note. "Unit volume accelerated following one day Prime delivery launch in 2Q19 – we believe it is only a matter of time before we see a similar impact as Amazon deploys fulfillment assets into the Holidays.".
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