According to analysts at Credit Suisse, Ocado, the British online supermarket that uses automation to store and retrieve products, could be rid of most of its employees within a decade,
At Amazon's Manchester warehouse, shelves move back and forth and machines less than half a metre high transport merchandise in a geometric choreography. The only humans are within a closed perimeter.
"Until now, it was employees who had to find items on the shelves and transport them around the warehouse. Nowadays, it is the shelves themselves that move. You could say that this is the beginning of a real revolution in the logistics sector," says Roy Perticucci, vice president of Amazon's European customer service department.
Technology shows the transformation taking place at the heart of the logistics sector. Many of the functions that were previously only handled by humans are now being taken over by robots as a result of advances in automation.
These changes raise serious questions about what will happen to jobs.
"Most jobs in logistics are unskilled and could be replaced by automation in the near future. This will lead to a radical change in the way the logistics sector is organised," says John Manners-Bell of consultancy Transport Intelligence.
According to analysts at Credit Suisse, Ocado, the British online supermarket that uses automation to store and retrieve products, could lose most of its staff within a decade, although the company insists that its workforce has been increased by automation.
Amazon, for its part, claims that it has created new jobs by expanding its logistics network in the United Kingdom. In 2017, the company will open four new warehouses that will employ 3.500 people.
The rise of e-commerce
Around the world, the growth of e-commerce is bringing about major changes in a sector that has become a vital economic artery by ensuring the flow of goods. Efficient warehousing and shipping are crucial to meeting high consumer expectations for fast and cheap delivery.
Amazon became the first company to use robots after acquiring Kiva for $775 million in 2012. The company now has about 80.000 machines in operation worldwide. Each robot can carry 340kg and has a laser and camera on the front to detect obstacles.
Ocado has begun using a second-generation system based on a network-like structure. "We have a multitude of robots occupying a kind of two-dimensional chessboard," explains Paul Clarke, head of technology.
Under each chess square is a stack of containers with products from each section. The robots descend along the network to pick up the objects and deposit them inside their bodies.
Finally, machines transport the container to an area at the edge of the three-dimensional structure where human workers pack the products.
Thanks to the robots, around 50 orders can be completed in just a few minutes, compared to the two hours it would take without the system.
Like other companies in the sector, Clarke stresses that robots have not caused layoffs at Ocado, but have helped the company improve its competitiveness and its low profit margins.
However, unions say the growth of e-commerce is a contributing factor to the decline in jobs. They are also concerned that increased automation will create a less skilled workforce and serve as a pretext for more precarious working conditions.
Amazon has been criticised in the past for its working practices at its UK warehouses. Now, the company is highlighting the benefits it offers its permanent workers and says it does not have so-called zero-hour contracts.
Despite fears, experts say there are many tasks that robots cannot perform on an industrial scale, such as actions that require more care or improvisation.
Source: Financial Times
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