AUTOMATION
82
In 2017 , the US Bureau of Labour Statistics estimated that four million Americans work in warehouses as supervisors , material handlers or packers . In total , that number comprises around 3 % of the total labour force and earns over US $ 100bn in annual wages . E-commerce will redefine this statistic , and the entire logistics industry . McKinsey estimates that out of every $ 100 in e-commerce sales , e-tailers ’ in-house logistics units are collecting $ 12 to $ 20 , a considerable increase from the $ 3 and $ 5 spent on logistics in a traditional brick-and-mortar retail operation . McKinsey believes e-tailers are saving approximately $ 12 to $ 16 out of every $ 100 of sales in comparison to their brick and mortar counterparts .
Logistics automation technology has developed rapidly in a short period of time . In 2018 , Ocado opened a fully robotic warehouse . Spanning 18 acres ( 784,080 sq . ft ), 1,100 waist-high robots move along a grid system and collect groceries from beneath them to drop off at a packing station . The plant in Andover , England , processes around 65,000 orders per week . BBC News said at the time : “ From the moment a customer places an online order to the moment the product arrives at your door ( via a driverless van ) there will be no human interaction .”
APRIL 2020