Dive Brief:
- Amazon has begun construction of a robotics fulfillment center in Goochland County, Virginia, according to a May 14 press release.
- The 3.1-million-square-foot facility will pick, pack and ship smaller items like books and toys, per the release. The site is expected to be fully operational in 2027, per an Amazon spokesperson.
- The Goochland County site will be the fourth such facility in the state for the e-commerce giant, which has invested more than $135 billion in Virginia since 2010.
Dive Insight:
Amazon’s plan to open a fourth robotics fulfillment center in Virginia builds on its ongoing efforts to utilize technology to improve efficiency within its supply chain.
The company currently operates two robotics facility centers in the state, with another in Virginia Beach expected to open this year, per the release. In addition, Amazon announced in March it is building a robotics fulfillment center in North Carolina to add to a roster that also includes robotic-enabled facilities in Louisiana and Texas. The company has around 100 such sites across the U.S., per an Amazon spokesperson.
Amazon is also testing new robotics technology that will eventually be deployed across the globe. Earlier this month, the company unveiled details about several new robot models, including “Vulcan,” which can pick and stow items and also has “a sense of touch.”
In parallel with these advancements, Amazon has focused on reworking its inbound network to take advantage of its shift to utilizing regional hubs for fulfillment operations, CEO Andy Jassy said on a May 1 earnings call. The company’s redesigned inbound architecture has expanded the product mix it can place in fulfillment centers, leading to faster delivery and lower costs, he added.
“Looking ahead, we'll continue to refine our newly redesigned inbound network, build out our same day delivery sites and add additional robotics and automation throughout our buildings,” Jassy told investors.
Rival Walmart has also touted the benefits of increased automation within its own fulfillment network. The retailer slashed unit costs by 20% year over year at its next-generation automated fulfillment centers compared to manual sites, President and CEO John Furner told investors in April. He added that the company expects even greater savings by the end of the year.
Elsewhere, other retailers like BJ’s Wholesale Club and Albertsons have also ramped up their use of automation within distribution centers and other supply chain facilities.
