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Nhóm A - SV thực hiện:
1. Lê Vân Anh
2. Nguyễn Khánh Duy
3. Ngô Thị Mỹ Linh

Đà Nằng, tháng 10/2020


QUẢN TRI ĐA VĂN HĨA

VĂN HĨA KINH DOANH Ý

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I.

INTRODUCING

Nowadays, the increase in consumers switching from shopping in physical Stores to
going online, many retailers have been forced to find ways to fulfil orders faster at much
higher volumes than before. Amazon is an immense Internet-based endeavor that sells
books, music, motion pictures, housewares, gadgets, toys, and numerous different
products, either straightforwardly or as the mediator between different retailers. Its Web
services business includes renting data storage and computing resources, so-called “cloud
computing,” over the Internet. Amazon has become one of the most powerful, respected
and feared companies in tech, and well beyond. Amazon’s logistics and shipping
operations have become almost impenetrable moats that few other companies will ever
have the resources or ability to match. In addition, customer expectations in recent years
have been on the rise - they want their orders delivered and they want it now. Amazon
has improved many areas to meet Customers’ demand, including inventor and packaging.
Our report will discuss the role of information and communication technology ( ICT) in
two areas of international logistics operations in Amazon Company.

Introduction of Amazon.com
Amazon was founded in 1994 in Bellevue, Washington by Jeff Bezos, whose full
name is Amazon.com - a Seattle-based American multinational technology company. The
company's focus is on cloud computing, digital streaming, artiíicial intelligence, and ecommerce. Amazon is considered one of the Big Four technology companies along with
Apple, Google, and Facebook.
Amazon's starting point is a bookselling site, Amazon has expanded diversiíied
íields from selling books online, providing video, audio (mp3), audiobooks, ... to home
appliances, furniture, furniture. pet care, office products, apparel, food, jewelry, and
hundreds of other product categories ... Regarding electronics, Amazon produces and sells
electronic devices, including Kindle, tablet Fire, Fire TV, Echo, Ring, and others, and
develops and produces multimedia content. The company is also the dominant cloud
service provider (either through Amazon Web Services or AWS). Now, "Amazon" has


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What is ICT ?
"Information and Communication Technologies", ICT refers to technologies that
provide access to information through telecommunications. It is similar to Information
Technology (IT), however, centers principally around information exchange through
technological advancements. This consists of the Internet, wireless networks, mobile
phones, and other means of communication.
In the previous few decades, the development of data and communication
technologies has provided humans with a huge amount of new communication abilities.
For instance, individuals can communicate with others in different parts of the world by
utilizing technological equipment like instant messaging, voice over IP (VoIP), and
video-conferencing. Social media like Facebook permits clients from everywhere the
world to stay in contact on a daily basis.
Today, Amazon's staff member work in work in technology-enabled environments
where the technology is utilized to improve cycles and help them doing their daily job,

from the random stow and pick through to box-sizing algorithms, software that
determines the shortest, most efficient walking route from one place to another and the
SLAM process (Scan, Label, Apply, Manifest), which was developed by Amazon and
remains a revolutionary innovation for customers because it speeds up the packing
process and helps ensure accurate deliveries.

II. ICT IS USED IN AMAZON'S INVENTORY
II.1 An brief overview of Inventory
Inventory management is a systematic way to deal with sourcing, storing, and
selling inventory—both raw materials (components) and íinished goods (products).
In business terms, inventory management means the right stock, at the right levels,
in the right place, at the right time, and at the right cost as well as price.
As a part of your supply chain, inventory management includes factors such as
monitoring and and administering buys — from suppliers as well as customers — keeping

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up the capacity of stock, controlling the measure of items available to be purchased, and
meeting customers' order.
The importance of inventory in logistics and supply chain management is the ability
to have end customer demand met with supplier sourcing. Companies operate to make a
profit, inventory is needed to conduct business, it also represents costs, flows, as well as
proíits. It is important to have inventory in place to meet optimally customer needs
whenever inventory is needed. Once the inventory is managed in accordance with

logistics and supply chain management, it makes a profit for the company.
Nowaday, Amazon's inventory management system is much more efficient with the
help of the Kiva system that shortens order fulfillment time.

II.2The development history of the Kiva system
The traditional warehouse model involves receiving products, putting them into
compartments, and then workers will put these compartments on forklifts and trolleys.
These vehicles will transport the product to the shelves and be unloaded from the vehicle
to be loaded on the shelves. When there are customers buying goods, workers go to the
shelves to load and unload products and use forklifts and trolleys to bring the goods to the
coordinator's place to pack and deliver goods. Mick Mountz - an expert working for
Webvan thinks a better solution is needed to collect, pack and deliver. Mount has
partnered with two robot technology experts Peter Wurman and Raffaello D’Andrea to
create a completely new solution to automate traditional warehouses.
There is some warehouse management automation software such as Manhattan
Associates, HighJump, or RerdPriaire that can optimize worker efficiency, but the cost of
completing the order is still quite high. Kiva's solution was groundbreaking when it came
to the question: Why do people have to take and deliver from the shelves when the
shelves can get to them?
In 2003, Mountz became the founder and CEO of Kiva System, Wurman and
D’Andrea were co-founders. The Kiva system was born with Kiva robots that carried the
warehouse shelves of the warehouse to and from where it was needed.

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Kiva creates robot operators ("boss" robots) that can locate the robot operators (ie
Kiva robot, "soldier" robot) closest to the item to be moved and control the "soldier"
robot. "There you go get the hang. The “soldier” robot automatically surrounds the
warehouse through a series of bar-coded chains on the floor. These "soldiers" have
enough intelligence and sensors to avoid each other and obstacles. When the robot arrives
at the right place, it will "crawl" under the shelf, lift it up and bring it to the dispatcher.
Thus, there is not every single robot operation but a whole system, including robot
system, automatic robot operation, warehouse floor and shelf.
In March 2012, Amazon stepped in and acquired the entire Kiva Company for $ 775
million. Amazon believes Kiva has given them a huge advantage and is as secure as it
wants to monopolize that strength. Before being sold to Amazon, Kiva was doing
business very well, but Amazon took its warehouse automation business seriously, and
they gave up profits from selling the same system to other companies and not giving away
partners accessing the technology of Kiva System. In August 2015, Kiva Systems LLC
was officially renamed Amazon Robotics LLC.
According to the Washington Post (issued on October 29, 2019), there are more than
200,000 Kiva robots operating in Amazon's warehouses so far. With its Kiva solution in
its warehouses, Amazon has minimized the number of warehouse workers and order
fulfillment costs while improving the fulfillment of each order. These days, the image of
the orange Kiva robots running around in the Amazon warehouse is considered the
symbol of warehouse management automation in the industrial age 4.0.

II.3How Amazon’s Kiva robots work
Previously, to fulfill an order warehouse workers had to roam the floor scanning
racks of merchandise in search of each speciíic product. Kiva Systems developed a way to
use robots to move the racks, or “pods,” on which the products are stored, instead of
having them search out and move the individual products themselves. Storage pods can

hold hundreds of different types of products, but the size and shape of each pod is exactly
the same.

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The Kiva looks like an oversized, electric-powered pot but can lift a shelf weighing
about 1.3 tons and automatically move on command from a distance. They're about 16
inches tall and weigh almost 320 pounds. They can run at a steady 5 mph. It can move the
target shelf from the warehouse to the handling area, then move the empty racks back to
their original position. When the battery is too low, Kiva will automatically return to the
charging position to charge itself. Basically, it was like a group of hardworking workers,
constantly walking around in the warehouse. How to avoid collisions while on the go is
one of the core technologies of the Kiva System, which Amazon has seen and
appreciated.
There are two versions of Kiva robots, the “G” drive for light pods weighing up to
750 pounds and the “S” drive for larger racks and pallets weighing up to 3,000 pounds.
Both models are designed to operate on a rotating schedule of 60 minutes of work,
followed by 5 minutes of charge time.
The robots are controlled by a centralized computer using a secured WiFi network
for communication. They have two powered wheels that allow them to rotate in place, IR
for obstacle detection, and floor cameras to read QR codes on the ground. The QR codes

are used by the robots to determine their location and direction.
When the customer clicks the final “Buy Now” button, the order enters a
sophisticated fulfillment system, which locates the products in different Amazon delivery
centers. An order of several products might be shipped from several locations, depending
on product type and availability. Then the system assigns priority depending on the
customer’s delivery preference — a “Super Saver” order might wait several hours, while
an AmazonPrime order must be shipped the same day. Once priority is determined, the
robots start to locate and move pods to the assigned packing station to prepare the order
for shipment.
The robots keep workers at the warehouse fully employed, according to Durham.
The system is designed to optimize robot operation and workstation load, so when a
worker is not packing an order, he has time to restock shelves or conduct an inventory
check of a pod brought in by a robot.

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To encourage workers to see robots as companions, each unit is given a different
name by an Amazon employee, and the name is entered into the system, so workstation
workers can refer to them by name instead of a serial number.
Amazon's automated warehouse systems with spinning robots can be seen at some
storage facilities or on car manufacturer's assembly lines. But the challenge facing the ecommerce supply chain is very different from the challenge of the assembly line in a
factory.
On an assembly line, robotics are used to repeatedly move selected pieces to build

the same car over and over again. For Amazon — like other retail fulfillment operations
— every online order is unique. Web retailers manage thousands, and sometimes
millions, of different products, all with varying weights, sizes, and shapes.

11.4

The effect of Kiva robot on Inventory

Kiva built a highly reliable system from electromechanical components and
manufacturing processes with carefully planning and executing product development with
a cost-efficient manner, which focused on satisfying customer needs and wants that were
both varied and changing.
On account of sensitivity which moved from the subsystems and processes that are
expensive to make exact, to parts whose accuracy can be guaranteed at a low cost. This
permitted us to design extremely dependable robots that can convey loads ranging from a
few kilograms to half a ton, with changing mass distributions, at quick speeds without
hitting one another.
Moreover, by approaching a lot of information,, we were able to design modelbased adaptation that improves the performance of the robots over time, while at the same
time providing us with important diagnostics and health metrics.

11.5

The advantages and disadvantages of Kiva robot in Inventory

The improvement of cutting edge mechanical technology emphatically affects
logistics. As an ever increasing number of robots enter our inventory, arranging focuses
and even assistance with final-mile conveyance, the cooperation with robots will tackle a

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few squeezing difficulties - including work accessibility, making the logistics supply
network quicker, more secure, and more productivity. Normally, inventory receives,
stores, preserves, retrieves and delivers a large number of items on an every day or week.
Along these lines, inventory systems are being continuously revised to accommodate a
continuous flow of products in logistics.
Today, in almost every aspect of the logistics process, robots and mechanization
improve efficiencies, from the inventory to the customer’s door. Here are some of the
substantial and clear advantages of receiving advanced mechanical systems in the
logistics industry. In an inventory, various processes should be running at a steady pace to
guarantee efficient order fulfillment. As innovation progresses, business directors are
utilizing applications, advanced administration systems, and tech tools any place possible
to expand productivity and alleviate cost. There are some undeniable beneíits to doing
this, however there still can exist some drawbacks to utilizing mechanization, as well.
❖ Advantages:
1)To improve the functioning effectiveness. Kiva adopts intelligent robots for
inventory navigation effectively improves the performance of the system is raised 8 times
than before. Most of the work in Amazon's inventory uses robots to do the job. From the
primary signs sent by a PC, which items are brought down from the rack to the sequence
of packing, waiting, loading and unloading onto the vehicle. Everything has robot
footprints.
=> guarantee congruity for the production and distribution of products

2)To save the labor cost. Kiva robots can move around in the inventory, snatch
and mobile shelves loaded up with items and container.This hi-tech can help retailers to
minimize employees complete online orders all the more rapidly and can undoubtedly
monitor enormous amounts of stock without huge labor. Hence, the organization can save
bunches of money since they will not need to pay money as wages. Additionally, robots
can work every minute of every day, so your inventory will not at any point need to close.
3)To accelerate the speed of order processing. Kiva systems utilize their cutting
edge innovation to build up the smooth inventory robot that can move rapidly in inventory

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and paid, and they demand higher salaries than those working on board because they must
have special training in automated systems.

III.


ICT IS USED IN AMAZON'S PACKAGING
III.1

An brief overview of Packaging

Amazon is famous for its drive to automate as many parts of its business as possible,
especially in packaging. One of the biggest challenges in e-commerce packaging is
designing it to be as compact as possible while ensuring that products arrive fully intact.
With this in mind, Amazon works with manufacturers worldwide to help them re-think
and optimize their packaging, reduce waste throughout the supply chain, and protect
products from damage during shipment to the customer. Therefore, Amazon has piloted a
new machine at dozens warehouses, known as the CartonWrap 1000 from Italian firm
CMC Srl, since 2019.

Figure III-1 : Amazon’s commitment in packaging. Source: Amazon

III.2

Definition of CMC CartonWrap

CMC CartonWrap is an automatic carton packaging system, which is capable of
generating carton boxes out of a continuous fan-shaped fold. It is taken from the
continuous folding fan with a dynamic box forming process for cutting, correcting and
boxing, inserting product, canning, labeling, and then exporting, all in one fully automatic
process. The system is Designed to address the needs of shippers, such as e-commerce

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and fulfillment companies, that need to procure and stock multiple size boxes to satisfy
varying packaging needs.
CartonWrap produces boxes from a simple and inexpensive corrugated fan-shaped
fold in real-time, each one is unique to the products being boxed. The real-time format
change is managed automatically through product recognition or directly from a database
ensuring high ílexibility of processing. This integrated solution is designed to help
companies use large numbers of boxes of different sizes and realize the need to ship
multiple boxes of different sizes according to the order received.

III.3

Features about CartonWrap

Each machine costs $1 million plus operational expenses, it takes Amazon a little
under two years to recoup the cost of installing the machines. The large machine scans
goods as they come down the conveyor belt. They then create an appropriate sized box
and package the items. The machine measures the ordered goods, folds the cardboard,

cuts the boxes down to size, prints the shipping labels, and sends each package off for
delivery. High productivity with speeds of up to 15 boxes per minute. System can be
expanded to add print systems for logos, trademarks or any other information directly to
the box, further allowing each box to be unique. Labelling systems can be integrated
according to shipping method needs. They crank out 600 to 700 boxes per hour, or four to
five times the rate of a human packer, the sources said. The machines require one person
to load customer orders, another to stock cardboard and glue, and a technician to fix jams
on occasion.

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The transversal cutting blade does the final cut of the reel, which is thereby getting a
fully shaped carton blank.
The forming module is self-adjusting according to each box being formed.

> Step 04
The semi-formed box is conveyed to the product deposit station, the size of the
product has been previously detected by the software.
The semi-formed box containing the product is closed and the box is íinished.
> Step 05
Before closing the upper flaps, it is possible to add additional documents, such as
marketing materials, invoices, return instructions, etc, through the use of optional feeders
> Step 06.
The completed package can also be optionally labeled according to shipping
requirements and conveyed to a final palletizing area.

111.5

The effects of CartonWrap on transportation area

Because packaging is directly related to the size and type of the product, the more
efficiently it is packed, the more cargo will be loaded onto any transportation modes. That
system helps to accurately package the product size so there will be no blank space
through movement. From there the company will need fewer shipments, less energy
consumed and reduce carbon footprint more.
Packaging and transportation goes hand in hand, CargoWrapping is helping Amazon
make the choice of sustainable shipping easier, helping Amazon plan their most efficient
and responsible shipping routes.
In addition,CargoWrap also helps to save money, which helps Amazon to spend that
money investing in other services like transportation, helping to improve and deliver
faster.

111.6

Advantages and Disadvantages of using CartonWrap


❖ Advantages

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1) The packing system is much faster than humans. It can pack faster than humans,
can pack 600 to 700 boxes per hour, 4-5 times faster than human speed. CartonWrap only
requires one person to load the customer's order, one person to bring in an extra carton,
and a technician to repair the damage.
2) Help save labor costs. A system that replaces at least 24 workers working in each
warehouse. These warehouses currently employ more than 2,000 workers. The scale of
machine adoption could make 1,300 workers at Amazon's 55 fulfillment centers
disappear.
3) Saving materials. The system creates a perfectly sized box with the product so
there is no free space wasting unnecessary packaging material.
4) Helping increase the safety and efficiency of the whole network. In the packaging
process, there are many stages such as selecting box sizes, labeling to distinguish the type
of goods. Human implementation will inevitably make mistakes, but with highly
programmed machinery systems, the errors will be minimized.
5) Less warehouse space is required, which helps save storage costs. Boxes come
directly from cut and shape from cartons so there is no need to shop and store boxes, only
store rolls. And there are no risks of not having the correct size box in stock.
6) Lowering investment costs. To be able to meet Amazon's huge logistics needs,

workers always have to operate at full capacity, as well as constantly need to hire new
workers in large quantities. The larger the number of workers, the higher the cost of
employment, while the job turnover rate of the employee is also high while the cost of
recruitment and training is not small. Also, the initial cost for a robot is high, but its work
efficiency and operation time are very long.

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