The future of distribution is “almost” ready to take off

Every now and then our eyes capture the sight of a small and noisy object flying across the sky. Mostly, it takes us some time to figure out and identify the rare encounter, but once we do, everybody seems amazed and cannot stop following its trajectory. Yes, in case a drone popped into your mind then you guessed right. Until recently, drones were mostly implemented for aerial filming as well as personal usage by single individuals and, consequently, made a rather infrequent appearance in the sky. Hard to believe that in no time a host of drones will come to populate the sky and revolutionize many aspects of various industries. Whether using drones to track how coral reefs are responding to climate change (1), having them monitor individuals from distance to pin down criminals (5), or even inspect infrastructure that’s hundreds of feet off the ground like a downtown skyscraper (6), companies and start-ups are eager to dive deeper into the realm of drone technology and come up with innovative and viable use cases.

One application of drones that will vitally impact a wide variety of sectors in the coming years is the delivery and distribution of goods. According to a 2016 survey by Packaging Digest (7), markets that would see the biggest benefit from drone delivery were pharmaceutical/medical, non-perishable consumer goods, shelf-stable food/beverage, and fresh food/beverage. Therefore, it comes as no surprise that big e-commerce corporations like Amazon and its Chinese counterpart JD.com are investing a huge amount of money in this disruptive technology. Both companies aim to “cut delivery times for items such as smartphones and food to areas where land transport is too slow” (2) and one expects distribution costs to be” less than those with human delivery once the technology is ready for wide-scale use.” (2).

However, there are more advantages from drone delivery to be leveraged than merely fast delivery and reduced labor costs. Drones are an ideal tool to distribute small goods such as healthcare supplies to remote places that “suffer from poor infrastructure or damaged goods” (3). Another increasingly important benefit is the environmental friendliness of drones. In comparison to delivery by road, rail or air, drones impact the environment minimally and could serve as an opportunity for many businesses to enhance their relations with the community. Lastly, implementing drones as a means of sending goods to customers will foster the competitiveness of companies through more efficient operations which will ultimately give them a “vital edge over their competitors” (3).

So, when reading the above one might come up with the following question:  If drones come along with so many advantages for the business sector why have they not taken off already and become ubiquitous in the delivery industry? The answer is the heavy regulation of governments, on the one hand, and the drone technology itself, on the other.

Concerning the former, there are several rules that owners of drones have to abide by. For example, the Federal Aviation Administration (FAA) in the US demands drones to “weigh less than 55 pounds with a maximum ground speed of 100 mph and a maximum altitude of 400 feet” (3). Furthermore, for operating a drone on a legal basis it must be controlled by a human operator with a certification.

Concerning the latter factor of technology, one could argue that we might not be ready for autonomous drone delivery when taking into consideration the technological capabilities of drones. Certain drones have hard times flying in heavy wind, rain or snow and, as a consequence, they could fall from the sky and crash. In addition to adverse weather conditions, wildlife is a major hurdle to the successful operation of drones, too. Flying drones might collide with birds as drones’ sense and avoid features that are being developed have not yet reached the necessary standard to make drone delivery collision-free.

 

Undoubtedly, drones will be a disruptive technology in a multitude of industry sectors and will certainly play a critical role in the future of delivery and distribution. Drone delivery possesses several advantages that make them a viable means of goods distribution not only from an economic point of view but also from an environmental one. However, there are still major hurdles for drone delivery to take the distribution industry by storm. The most critical element will be the continued interplay between the tech industry and the government and in order to actually see all the economic growth and production efficiencies that drone innovations promise us, policymakers “must commit to providing the drones sector the infrastructure it needs and fully embracing a strong partnership with industry” (6).

 

Bibliography:

 

1. https://www.pbs.org/newshour/world/these-drone-projects-are-saving-lives-and-protecting-nature

Retrieved on 25^th July 2018.

2. https://www.bloomberg.com/news/features/2018-07-03/china-s-on-the-fast-track-to-making-uav-drone-deliveries

Retrieved on 25^th July 2018.

3. https://redstagfulfillment.com/drone-delivery-is-about-to-revolutionize-the-supply-chain-industry/

Retrieved on 25^th July 2018.

4. http://grinddrone.com/info/pros-cons-delivery-drones

Retrieved on 25^th July 2018.

5. https://disruptionhub.com/6-interesting-uses-drones/

Retrieved on 25^th July 2018.

6. https://medium.com/engine-futuretech/why-drones-are-the-ultimate-disruptive-technology-989f10092a0

Retrieved on 25^th July 2018.

7. https://www.packagingdigest.com/supply-chain/2016-drone-package-delivery-report

Retrieved on 25^th July 2018.

 

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