Amazon announces plans to build largest warehouse in Australia, featuring a workforce of robots
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Amazon has officially announced its intentions to construct Australia's largest warehouse in the Melbourne suburb of Craigieburn.
This cutting-edge automated fulfilment centre, spanning a vast 209,000 square meters—equivalent to the size of 11 Melbourne Cricket Grounds (MCGs)—is notably larger by 830 square metres than Amazon's initial robotic fulfilment centre in Kemps Creek, Western Sydney (the company's first of its kind in Australia).
The projected launch for this new facility is set for 2025.
Similar to the operational model at the Kemps Creek site, the forthcoming Craigieburn facility will operate with a collaboration between robots and human workers.
These robots will efficiently navigate the warehouse to gather various items, subsequently delivering them to employees. These employees will then be responsible for preparing the gathered items into packages for shipping purposes.
'Instead of the associate going to the items, the items are coming to the associate. That helps speed [up] order processing time,' Amazon Australia Country Chief Executive Janet Menzies said.
The investment in the robotics site further proves that the e-commerce giant is committed to the Australian retail market for the long term. Amazon has invested $8.4 billion in its Australian operations since its launch.
Despite data indicating a decrease in household spending due to rising living costs, Amazon remains optimistic about its growth prospects in Australia. This optimism is highlighted by its continuous investments, such as the new site.
‘Australia is a very important market for Amazon and we're really buoyed by the consumer reaction to our offer,' Menzies said.
'Just very excited about the opportunity this will create for new jobs'.
An investment and advisory group called Jarden analysts predicted that the total value of merchandise sold on Amazon's Australian platform could reach $5 billion by 2024.
Ms Menzies recently reported an increase in subscription orders for everyday grocery items and expressed positivity about the success of the July Prime Day sales event.
Amazon's stock has risen by approximately 12 per cent in the last month due to better-than-expected quarterly earnings. Despite a global spending slowdown, the company achieved an 11 per cent year-on-year sales growth, leading to this surge.
Ms Menzies said the investment in the new Melbourne site would be a win for the retailer’s third-party sellers, who would be able to store products there.
To support this growth, Amazon will be hiring for various roles at the Craigieburn facility, including positions related to IT and engineering to manage the robots. Once fully operational, the site is expected to employ around 2000 staff.
The trend of investing in automated warehouses in Australia's retail sector has led to the creation of a range of new logistics jobs.
Coles also follows this trend by seeking tech-savvy warehouse workers to support its automated grocery facility in Queensland.
Whether we label it as progress, find it intimidating, or view it as exciting, there's no denying that the landscape of shopping in Australia is undergoing swift transformation.
Members, we'd love to hear your insights! Are you a frequent Amazon shopper? Do you believe it's beneficial for other retailers and supermarkets to adopt automated warehouses and centres? Join the conversation and share your perspectives in the comments section!
This cutting-edge automated fulfilment centre, spanning a vast 209,000 square meters—equivalent to the size of 11 Melbourne Cricket Grounds (MCGs)—is notably larger by 830 square metres than Amazon's initial robotic fulfilment centre in Kemps Creek, Western Sydney (the company's first of its kind in Australia).
The projected launch for this new facility is set for 2025.
Similar to the operational model at the Kemps Creek site, the forthcoming Craigieburn facility will operate with a collaboration between robots and human workers.
These robots will efficiently navigate the warehouse to gather various items, subsequently delivering them to employees. These employees will then be responsible for preparing the gathered items into packages for shipping purposes.
Amazon has confirmed plans to build Australia's largest warehouse, which will put a fleet of robots to work. Credit: Amazon Australia.
'Instead of the associate going to the items, the items are coming to the associate. That helps speed [up] order processing time,' Amazon Australia Country Chief Executive Janet Menzies said.
The investment in the robotics site further proves that the e-commerce giant is committed to the Australian retail market for the long term. Amazon has invested $8.4 billion in its Australian operations since its launch.
Despite data indicating a decrease in household spending due to rising living costs, Amazon remains optimistic about its growth prospects in Australia. This optimism is highlighted by its continuous investments, such as the new site.
‘Australia is a very important market for Amazon and we're really buoyed by the consumer reaction to our offer,' Menzies said.
'Just very excited about the opportunity this will create for new jobs'.
An investment and advisory group called Jarden analysts predicted that the total value of merchandise sold on Amazon's Australian platform could reach $5 billion by 2024.
Ms Menzies recently reported an increase in subscription orders for everyday grocery items and expressed positivity about the success of the July Prime Day sales event.
Amazon's stock has risen by approximately 12 per cent in the last month due to better-than-expected quarterly earnings. Despite a global spending slowdown, the company achieved an 11 per cent year-on-year sales growth, leading to this surge.
Ms Menzies said the investment in the new Melbourne site would be a win for the retailer’s third-party sellers, who would be able to store products there.
To support this growth, Amazon will be hiring for various roles at the Craigieburn facility, including positions related to IT and engineering to manage the robots. Once fully operational, the site is expected to employ around 2000 staff.
The trend of investing in automated warehouses in Australia's retail sector has led to the creation of a range of new logistics jobs.
Coles also follows this trend by seeking tech-savvy warehouse workers to support its automated grocery facility in Queensland.
Whether we label it as progress, find it intimidating, or view it as exciting, there's no denying that the landscape of shopping in Australia is undergoing swift transformation.
Members, we'd love to hear your insights! Are you a frequent Amazon shopper? Do you believe it's beneficial for other retailers and supermarkets to adopt automated warehouses and centres? Join the conversation and share your perspectives in the comments section!
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