Amazon’s ethos seems best summarized in series of buzzwords: Quicker! Cheaper! Better! While there remains some debate about the net value of this way of thinking, there can be no denying its impact on the supply chain as a whole: Amazon has revolutionized the way retailers and consumers think about shipping, by setting new, constantly increasing standards and expectations. From two-day shipping to next-day, and then to same-day delivery, and then to an immediate four-hour window, Amazon has continued to raise the bar and industry standard for order fulfillment. Accordingly, its supply chain has evolved as well, to meet the increasing demands placed on it.

Most recently, Amazon announced the integration of robotics and artificial intelligence systems into its already technologically sophisticated supply chain. Newly developed humanoid robots with unprecedented capabilities were tasked with performing specific, repetitive tasks within the warehouse, including picking, packing, and managing inventory. Simultaneously, wheeled robots were created to aid in the transportation of goods.

In a statement announcing this new technology, Amazon stressed the value that these changes would bring to its workers. The introduction of robotics systems aims to create hundreds of thousands of new jobs, including 700 categories of skilled job types that did not previously exist within the company. As examples, Amazon cited an increasing need for employees who can perform robot maintenance and system oversight—skilled positions for which it promises current, eligible employees can receive further training.

Beyond financial aims, Amazon has cited safety concerns as central to the design and implementation of robots in warehouses. These robots effectively remove the need for employees to reach over their heads repeatedly or squat to lift customer orders, the kinds of efforts that lead to long-term and repeated injuries.

As these rollouts continue, Amazon also notes its significant investments into the research and development of further technology. The extent to which it might be able to compress its already tight turnaround window even further, and set an even higher standard of service, remains to be seen.

Discussion Questions

1. If robots, with their greater efficiency, take over repetitive tasks, what is the role of human workers in Amazon warehouses?
2. At what point do new innovations lead to unreasonable demands on supply chains and their various members?

Sources: Scott Dresser, “Amazon Announces 2 New Ways It’s Using Robots to Assist Employees and Deliver for Customers,” Amazon News, October 18, 2023; Shiona McCallum and Chris Vallance, “Amazon Trials Humanoid Robots to ‘Free Up’ Staff,” BBC, October 19, 2023; Umar Shakir, “Amazon Says Its Robots Will Speed Up Delivery and Definitely Not Replace Humans,” The Verge, October 18, 2023.