Amazon Inc (NASDAQ:AMZN) Chooses Robots Over Humans For ‘Manpower’

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By Thomas Copeland on December 2, 2014 Technology & Software

Amazon (NASDAQ:AMZN) is making good use of technology and redefining customer service. To deal with the customer onslaught during the holiday season, Amazon Inc (NASDAQ:AMZN) has installed 15,000 robots to tend to customers. These robots are installed across 10 warehouses of the company. This will cut the operating costs by one-fifth and also increase the delivery efficiency during the Christmas season rush. The robots weigh 320 pounds and they can be seen scooting around the warehouse tending to goods, and quite frankly working more efficiently than usual human workers.

Amazon Inc (NASDAQ:AMZN) bought these robots for 775 million in 2012 and this is the first time the company will be using them. Amazon Inc (NASDAQ:AMZN) is expecting a barrage of customers and to prepare for that, a lot of manpower is needed. Employing multitude of workers didn’t seem like a good idea to Amazon Inc (NASDAQ:AMZN), hence, they brought in the robots to handle the hassle. Amazon Inc (NASDAQ:AMZN) is also competing with brick and mortar stores that take pride in their customer delivery service. Amazon Inc (NASDAQ:AMZN) has made the competition a lot tougher for the rivals because now it’s human vs. robot. These robots will help Amazon Inc (NASDAQ:AMZN) deliver goods to customers in a shorter time than the rivals.

Last year Amazon Inc (NASDAQ:AMZN) was overwhelmed with orders and shipping and it led to orders being delayed which brought a lot of heat on Amazon Inc (NASDAQ:AMZN)’s management. Amazon Inc (NASDAQ:AMZN) isn’t ready to take any chances this year and robots seem like a good idea to them. Amazon Inc (NASDAQ:AMZN) offered shipping refunds last year to those who got their orders late, along with 20 dollar gift cards. This time, Amazon Inc (NASDAQ:AMZN) isn’t in the mood to face any embarrassment, in fact it wants to stand out as the company that is a step ahead of everyone.

Amazon Inc (NASDAQ:AMZN) made the robots operational in the summers, ahead of the important holiday quarter. It’s quite amazing to see these cupboard look-alike robots scooting around fast paced and taking care of business that would’ve needed a lot of manpower. Amazon Inc (NASDAQ:AMZN) previously estimated that the company will be paying $46 million in order to install these robots along with $26 million for equipment. This means the move has cost Amazon Inc (NASDAQ:AMZN) a lot.

But it’s all going to help Amazon Inc (NASDAQ:AMZN) in the long run because these robots are taking care of work that would’ve needed large volume of employees. Those workers would’ve needed paying and that would’ve been quite a hassle for Amazon Inc (NASDAQ:AMZN) and that too in such a short notice. Hence, the robots were preferred. Though there is a dark side to the picture. These robots are quite prone to mishaps and defects; should anything of that nature arises, Amazon Inc (NASDAQ:AMZN) will have quite a problem to deal with. Each robot can carry as much as 720 pounds, which was impossible for a one or more human beings.