Are Drones the Future of Logistics?
The ever increasing pace of global transportation means logistics is bound to catch up, and boy has it! In fact, logistics in supply chain management is evolving continually to keep up with the consumer demands globally. We have already come a long way, now having the ability to place an online order through one of our hand held devices and having them delivered within a few days, thanks to seamless logistics operations. If companies are to expand and grow, they must increase their logistics competency. They must be able to improve their supply chain to be able to take in more orders.
The problematic “last mile of delivery”
The last leg of the supply chain is referred to as last mile delivery and this last step is almost always the most problematic. Mostly, it’s the high cost during the last mile that contributes to the bulk of the problem. Did you know that the final leg of delivery can comprise up to 20% of a product’s total transportation cost? The next step would obviously have to be an innovation that overcomes this obstacle. Fuel, vehicle, labor and loading are all factors that contribute to the sky high last mile costs.
Requirement of Drones in Logistics
Even though we have sophisticated services like Frost Dubai Trucks to carry out safe transportation of our perishable goods on demand, the next generation of logistics is going to be very exciting. We are now using drones for logistics operations!
The possibility of drones being used for package delivery is being explored mainly because drones offer a way to bypass many of the problems associated with the last mile of delivery. In fact, more companies are toying around with the idea of drone delivery to stay ahead of competition, and to not let startup companies adopting this method surpass them.
Let’s go through some distinctive benefits that drone delivery has to offer.
Drones are exceptionally applicable for online retail stores because online shoppers find free and fast shipping one of the most enticing features of any store that offers them.
Aside from home deliveries, drones can also be used to make deliveries within the company’s supply chain to create seamlessness in operations.
Currently, drone delivery technology is at the testing stage in rural areas. With the transition of drone delivery to more populated areas, regulations concerning delivery drones will most likely follow.
Take a look at current drone delivery applications
Last year, a couple in New Zealand became the first two people to eat a drone delivered pizza from Domino’s. That’s right. Domino’s partnered with Flirtey drone delivery services to make this happen. The CEO and Managing Director of Domino’s, Mr Meij said, “We invested in this partnership, and technology, because we believe drone delivery will be an essential component of our pizza deliveries.”
Amazon has been developing a workable drone delivery technology called Prime Air since 2013. Amazon has been going at it with the FAA to let their drones take off. Last year, the first drone delivered package was received by a customer in Cambridge, England. Every day, Amazon takes a stride into making drone delivery a widespread reality for the public.