Kiva Systems Warehouse Automation set to be acquired by Amazon

22/03/2012 has announced that an agreement has been reach for them to purchase warehouse automation material handling technology company Kiva Systems.

It has been reported that Amazon will acquire all of the outstanding shares of Kiva for approximately $775 million in cash and the acquisition is expected to close in the second quarter of 2012.

“Amazon has long used automation in its fulfilment centres, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,” said Dave Clark, vice president, global customer fulfilment, “Kiva shares our passion for invention, and we look forward to supporting their continued growth.”

Amazon’s annual report 2011 identified that the company’s ability to optimize its fulfilment centres and warehouses was one of the risk factors affecting its business.

This move by Amazon highlights the vital importance effective and efficient warehouse design, layout and automation plays for all retailers.

With UK retail still in a very delicate process of recovery and the Office for National Statistics have reported that UK retail sales volumes fell by 0.8% in February compared with the previous month. Retailers need to focus on ensuring robust and efficient supply chain s especially in their fulfilment centres and warehouses.

Experienced Supply Chain Consultancy Total Logistics assists organisations to review and optimise their supply chains including logistic operations, distribution and warehouse design.

Total Logistics has a highly experienced team, all with genuine hands-on experience of managing supply chain operations. Typically our clients experience savings range between 10% - 20%.

For more information call Total Logistics on +44 (0)118 977 3027 or visit

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