March 1, 2009

Video Case History - Sponsored Content

Zipping through Zappos

Mobile fulfillment robots from Kiva Systems provide flexibility, scalability and increased productivity in filling direct-to-consumer orders at Zappos.

Online retailer Zappos.com has a corporate philosophy called WOW. The name reflects how Zappos believes in WOWing its customers through an exceptional online experience and superior customer service. The WOW philosophy is also very evident at the Zappos distribution center in Shepherdsville, Ky. The facility performs direct-to-customer distribution of footwear, handbags and accessories, as well as the newer product lines that Zappos has begun to offer, including apparel, housewares, electronics, and camping and outdoor equipment.

"Service is very important to us, and we wanted to make sure that as we expanded into these new product lines, we could maintain our high level of service to our customers," says Anthony Vicars, director of fulfillment at Zappos.

Considering its unique mix of products and the company's goal of completing customer orders within an hour of receipt, Zappos needed a material handling solution that was unique in itself. That is why Zappos chose Kiva Systems to provide a robotic mobile fulfillment solution for processing all of its non-footwear orders.

Pods and bots
Products in the Kiva system are stored on portable rack units called pods. Each pod contains multiple shelving locations accessible from all four sides of its square racking. Small transport robots are used to gently pick up the storage pods and then carry them—rack, product and all—to picking stations. Once the pods arrive, workers select items from the pods for multiple orders. A laser light at the workstation automatically sends a beam of light to each storage position where an item needed for an order is held. Additional put lights are also attached to an accumulation counter. These illuminate to represent each order and to tell the workers where to place the picked items. Typically, three orders are picked at a time, with items deposited directly into shipping cartons.

Once items are picked, the robot returns the pod to a floor storage position, while another robot right behind it brings another pod for the next picks. As a result, the Kiva system provides fast, continuous picking, as workers never have to leave their stations to find products. This saves considerable time compared to the former order-filling method of walking and picking from static racking.

The Kiva system is also extremely flexible, as nearly any size of item can be placed into the easily adaptable locations on the pods. And as volumes grow, the system can be expanded simply by adding additional storage pods and robots. There is no need for conveyors, lift trucks or other automation in this area, as the Kiva system can hold, transport and manage everything.

The Kiva software that directs the system is also highly configurable. "If our business rules change, we can easily modify our operations within Kiva. This allows us to pick, pack and ship just about anything with the system," says Vicars.

Since implementing the system last year, Zappos has seen dramatic improvement in its overall customer experience.

"It is twice as fast compared to our former static rack picking and sorting conveyor. Kiva never runs out of work," says Vicars. "Our employees love it too and love working in that area. They are extremely proud of it."

For more information on Kiva Systems, call 781-221-4640, or visit www.kivasystems.com.

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