The Link: LINK

The Story: Logistics Management ran a very interesting article on the online retailer Zappos.Com and how they overcame their order fulfillment issues by using robots.  As the company grew beyond being just an online shoe retailer, it struggled with how to be efficient in fulfilling orders when the items were not the consistent size of a shoe box.  The solution they came up with was a robotic system made by Kiva Systems Inc.  In this system, the robots roam the DC and bring bins of items back to the pickers.  A laser then highlights which specific item is to be picked and a monitor shows the quantity.  The robots do not use wires, rails, or laser for guidance.  Instead, Zappos put bar coded stickers on the floor and the robots read those.  Also, the system stores the larger bins throughout the DC based upon the order characteristics of the items in the bin.  A particular bin does not have a “home” in the DC.  If it’s items are hot this week, the robots don’t take it very far from the picking stations.  If it’s items are frequently ordered with another item, those two bins are stored next to each other.  In all, it seems like a very efficient system and if Zappos decides to leave the building, it can easily be taken with them.

The Analysis: The story brings up a number of interesting issues as it relates to the future of warehouse design.  According to Zappos, one issue with the Kiva system is that it does not go vertical.  All of the bins reside on the warehouse slab.  For years, clear height has been a driving force in the warehouse industry.  Anything under 24′ is considered class “B”, less functional space.  32′ clear is the de facto norm for new construction and 40′ and 50′ are not unheard of.  However, with one of these systems, even an 18′ clear building can be brought into the 21st century.  It would be interesting to run the analysis to see if the cost savings of leasing an older facility and the increase in worker productivity would offset the cost of the Kiva system.  Zappos claims the system is so efficient that it can have an order ready for shipping 12 minutes after the user hits the “submit order” button.

This army of robotic workers can also operate in total darkness.  Zappos only has to light the picking area.  This has the obvious effect of reducing the electrical usage, but also works to reduce the buildings heat load.  Do I smell a LEED point in there somewhere?

If you knew you were constructing a building for an automated user, what other design specs would you change?  It’s only a matter of time before more and more DC’s become completely automated.