Amazon has been making use of automation for packing the items and storing it into their centers. Recently, these robots have been storing more number of items into the fulfillment centers of Amazon, which are reaching up quite high on the shelves to store and further retrieve the household goods, electronics, toiletries. As a result, the company is reconsidering how it is going to account for space.
The Chief Financial Officer of Amazon, Brian Olsavsky, considering the last week’s earnings call with the analysts stated that the company is expected to start making use of cubic feet in place of square footage so as to measure the footprint of a warehouse. This is likely to change the measurement from one of the sheer size to one of the volume. It will further give a transparent picture of how Amazon is anticipated to become more efficient after a tremendous growth in its inventory.
Brian Olsavsky further said that they are debating over the dynamics of the warehouse, which are changing due to which the square forage will not be the key indicator and they can consider the cubic feet. Also, the company if makes any another change then it will offer more details to all the investors. The detailed and time regarding the final decision that Amazon is going to take has not yet been disclosed. Furthermore, the company is going ahead in the direction of vertical expansion by storing up the multi-story warehouses. Thus, the actual use of the Amazon warehouses is no longer showcased only by its length, but also with its height.