“Zappos needed a material handling solution that was incrementally scalable so it could grow smoothly as our sales do, rather than a traditional system that can only grow in large, expensive jumps,” said Craig Adkins, VP of fulfillment operations. “Conventional equipment is also very difficult to move if you need to alter the footprint or change facilities, and this can be extremely frustrating. Kiva solves several problems simultaneously with portable equipment that not only scales up and down on a dime, but is also flexible enough to easily accommodate new product characteristics.”

Kiva’s innovative approach to order fulfillment utilizes a fleet of mobile robotic drive units that bring inventory directly to workers, allowing easy and efficient access to all inventory items at all times. For eCommerce fulfillment, which demands single-order accuracy and speed, Kiva boosts order productivity and maintains high picking standards. This approach is also applied to completed orders, ensuring that the right order is delivered to the right dock door at the right time. Elimination of operator walking and waiting time enables worker productivity that is two to three times higher than with other automated systems.

Kiva believes that for Internet retailers, the distribution center is the store, and the Kiva Mobile Fulfillment System is a strategic advantage that transforms the distribution center into a truly optimized, competitive asset. The Kiva approach is ideal for eCommerce fulfillment, allowing orders to flow directly from the Internet to the factory floor. Since Kiva’s workflow eliminates the need for batch or wave processes, the faster order cycle time enables customers to place orders late at night and receive their merchandise the next morning. What’s more, because all the system components are mobile and modular, a Kiva-equipped distribution center has unprecedented flexibility when adding new products or expanding throughput—without disrupting ongoing operations.

"Zappos has become so successful by making it easy for customers to find and purchase great products," said Mick Mountz, founder and CEO of Kiva Systems. "Kiva has taken the same approach to material handling and designed a system that is easy to set up, easy to use and easy to grow. Kiva makes it possible for Zappos to scale up quickly while preserving its legendary customer service model.”

About Kiva Systems

Kiva Systems, Inc. uses game-changing automation technology for distribution centers that helps companies simplify operations and reduce costs, while increasing strategic flexibility. Using autonomous mobile robots and sophisticated control software, the Kiva Mobile Fulfillment System enables extremely fast cycle times with reduced labor requirements, from receiving to picking to shipping – all without conveyor. The result is a building that is quick and low-cost to set up, inexpensive to operate and easy to change. For more information on Kiva Systems and its solutions, please visit www.kivasystems.com.

About Zappos.com

Established in 1999, Zappos.com has quickly become one of the leaders in online shoe and handbag sales by focusing on providing shoppers with the best possible service and selection. Zappos.com currently stocks more than 3 million shoes, handbags, apparel items and accessories from over 1,000 brands in warehouse space totaling 905,000 square feet. Ranked #79 in 2006 on Inc. Magazine's list of 500 fastest-growing private companies in the U.S., Zappos.com in 2006 topped $586 million in gross merchandise sold, strongly surpassing its 2005 number of $370 million. The company was recently named "Best of the Web" for 2006 by Internet Retailer. Zappos.com was also included in Time Magazine's "25 Sites You Can't Live Without." Zappos.com's Customer Loyalty Team is available 24/7, 365 days a year.