Amazon Warehouse Automation (2012-Present)
March 2012 - PresentWhat Happened
Amazon acquired Kiva Systems for $775 million in 2012 and began deploying robots in fulfillment centers. By 2024, the company operated over 1 million robots across its network, with systems like Sequoia enabling 75% faster inventory processing. The transformation redefined warehouse economics and forced competitors to match automation levels.
Outcome
Amazon's fulfillment costs initially rose during deployment, then declined as robots reduced labor requirements and increased throughput per facility.
Warehouse automation became table stakes across e-commerce logistics. Companies unable to match Amazon's capital investment lost competitive position. The industry now expects 75% automation targets.
Why It's Relevant Today
WM's recycling automation follows a similar playbook: massive upfront capital expenditure to fundamentally change unit economics, creating competitive moats through operational efficiency that smaller players cannot replicate.
