Amazon uses high levels of automation

E-commerce retailers are likely to invest more in automation as a result of the coronavirus pandemic, allowing them to further reduce reliance on human labour and better handle shocks to their supply chains in the coming years.

S&P Global reports that retailers, including Amazon, Walmart and The Kroger Co., had already invested in technology tools ahead of the virus outbreak to increase efficiencies within their physical stores and warehouses.

The report cites expert predictions that the outbreak, which caused massive supply chain disruptions and led to worker backlash over a lack of safety supplies, could be a catalyst for millions of additional dollars in automation and robotics capabilities that automate tedious tasks otherwise performed by low-wage workers.

Increased adoption of robotics will give retailers more consistency and control in their supply chains, which have experienced bottlenecks due to soaring demand for online goods. The downside, according to the report, will be the possible loss of millions of US jobs, including positions susceptible to automation, in transportation and food preparation.