Is the Future of E-commerce in Drone Deliveries?

March 8, 2018 | 13 views

The logistics are complex and intense. The regulatory hurdles are steep and covered with red tape. And like autonomous vehicles, the technology is already capable of the task at hand – however, it will take time to build acceptance and trust with customers to allow drones to fly onto their property for any purpose.

Spotlight

Runnr

As a B2C platform, Runnr is an on demand food ordering platform that brings you food from restaurants near your location. Just like Runners, our Runnrs go around town delivering delicious cuisines to your doorsteps. With Runnr’s location based services, you can go through and pick from the latest menus of restaurants and live track your order as it reaches you. With no minimum order and lightning fast delivery, there’s no reason to step out of the comfort of your home.

OTHER ARTICLES

Put Strategy First When Pondering Automation for Your DC

Article | May 31, 2021

The unsurprising investment eagerness of venture capital funds is manifesting in an automation tech glut in the distribution center space. Motivated by enabling trends like labor and land shortages, DCs are amid an automation transformation. Never has defining an automation strategy been more important. There’s no shortage of VC cash available to logistics tech startups With a brightly shining spotlight centered on supply chains for the past two years, it’s no surprise that total funding in logistics startups has seen a dramatic increase – growing at over 70% CAGR (Compound Annual Growth Rate). Logistics technology startups raked in over $25 billion in the first three quarters of 2021. That’s more than half of the total amount raised in the whole of 2020, and the incentives for continuing investment persist. The rise of the of the “micro” DC “Micro” is a relative term. The size of a micro fulfillment center (MFC) can range from 5,000 to 50,000 square feet. Those reduced square footages allow location in dense urban areas, typically within 40 miles of most of their intended customers. In addition, smaller footprints lead to reduced rents compared to a standard customer fulfillment center (CFC), and the proximity to consumers makes for lower final mile delivery costs. It’s no wonder that MFCs accounted for more than half of the logistics real estate leasing activity in the third quarter of 2021. The “urban logistics” trend is fueling demand for these highly automated, smaller locations. Vertical logistics integration grows ever more fashionable among retailers It’s a very “in” thing right now, these acquisitions and partnerships, and they won’t be going out of fashion soon. For example, American Eagle took in Airterra and its parcel optimization tech and third-party logistics (3PL) provider Quiet Logistics. Target started early. They bought Grand Junction, a software platform that helps retailers determine the best delivery method and track carrier performance, in 2017. Their 2020 acquisition of Deliv brought with it same-day delivery routing technology that they’re now applying to their 2021 purchase, on-demand delivery service Shipt. Target uses Delivs’ tech to generate more efficient routes for Shipt. Kroger has partnered with UK’s e-grocery specialist Ocado to build automated CFCs across the US and expand their retail footprint. The first CFC opened last spring in Ohio and their second in Florida later that year. They plan to open 20 CFCs over the next three years. “The proliferation of DC automation solutions and modalities, the rise of MFCs in high-density urban areas, the increasingly automated vertical integration of logistics, and the need to rapidly expand order fulfillment capacity have all, in combination, advanced the need for and application of clearly defined strategies concerning the implementation of automation technology. Do not operate without one.” Vikas Argod, Principal, Supply Chains Operations practice at Chainalytics Coping with shortages in warehouse space and labor availability Third quarter, 2021 US demand for industrial real estate exceeded supply by 41 million square feet. This pushed the national vacancy rate in the fourth quarter down to a record 3.7% in the Cushman & Wakefield US National Industrial MarketBeat report for Q4 2021. Who knows what the record might be when the Q1 2022 report breaks in a few weeks? On the labor side, the December 2021 US unemployment rate was 3.9%, lower than in December 2019 (3.6%) yet reflecting a tighter labor market. Labor force participation rates are at 61.9%, nearly 2% below February 2020 levels, because of lingering effects of the COVID-19 pandemic. The rising wages and signing bonuses of the past year offer silent testimony to the ongoing constraints in today’s labor market. Both trends will remain with us for the near- and mid-term, making an automation strategy a necessary part of your DC operations as you attempt to mitigate the effects of both. In addition, warehouse labor shortages are most pronounced in markets with high distribution center densities – Greater Memphis, In-land Empire, Allentown, PA, et al.) Building the capability to rapidly open DCs at scale No other factor drives home the need for a coherent DC automation strategy like this one. Let’s explore it with an example. We’ll call this “A Tale of Two Companies.” One jumped on the automation bandwagon without hesitation – not a bad thing – but applied no strategic groundwork. The other is, well, Amazon. Company one responded to increasing demand by creating DCs in their usual, strategically located fashion. However, with automation, the lack of a logical strategy led to adopting “the best that money could buy.” So, while these DCs work fine on their own (most of the time), each employs unique implementations from a variety of vendors, with little to no overlap of methods, capabilities, and management procedures between DCs. It’s functional, but a needlessly complicated hodgepodge. On the other hand, it definitely looks like Amazon has a standardized automation strategy. One that can easily adapt to exploit the individual physical specifications of any space. This makes it simple to arrive and equip it with a standard package of automation solutions. That’s probably how Amazon blanketed the US with over 400 new DCs in just the last two years. They waste no time or money on repeating unnecessary decisions along the way. Now, we all can’t have the resources of an Amazon. However, the rise of on-demand warehousing companies like Stord and Flexe allow organizations to dramatically decrease the cycle time of standing up additional fulfillment capability. Developing an automation strategy will feel familiar. It begins with benchmarking, order profiling, current performance drivers, EBIT targets, and theoretical evaluations of newer technology options. All this leads to the creation of a decision framework for DC automation. The goal here is achieving alignment among the leadership on critical capabilities to focus on. These include rapid fulfillment, labor shortage, capacity constraints, safety challenges, or sustainability. Those that commit to this process will start slowly but finish with a strategy that will underpin thousands of decisions and enable sustained rapid growth. If, in the end, you decide that automation is not right for your operation, that’s a perfectly valid strategy as well. So long as you have a method to evaluate all of your options, and you base your decision on cost-service-sustainability trade-offs, the right strategy for your organization may be no automation at all. There’s no point in chasing shiny robotic objects if automation makes little sense‌. The rise of automation and the multitude of technologies to choose from require the development of a strategic decision framework. Contact us and see how Chainalytics – an NTT DATA company – can be your guide in developing this critical part of your foundation for growth. Our top supply chain talent, enabled by proven, leading-edge digital assets – tools, methods, and content – deliver actionable insights and measurable outcomes to some of today’s largest and most complex supply chains.

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SOFTWARE AND TECHNOLOGY

Digital innovation in logistics warehouses

Article | April 19, 2022

Business Chief takes a look at three leading logistics companies and how they are digitalising their warehouses. With technology evolving at an exponential rate, and the logistics industry needing flexible solutions for its complex operation, we take a closer look at some of the successful deployments of digitalisation within the warehouses of leading logistic companies around the world.

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How to Test Major Changes in Your Supply Chain Process

Article | July 29, 2021

Did you know that the return of your supply chain process depends on how your software technology works as well as the efficiency of the people involved in the entire process? However, changes keep taking place, and you might feel clueless as to where your initiative is going. Supply chain testing is done in order to know and mark the various aspects where the supply chain is the weakest. Since data handling is a crucial aspect, managing it becomes even more necessary.

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Trends in Shipping by Vertical: Retail, Wholesale & OEM Shipping for 2020

Article | February 10, 2020

Global trends in shipping continue to evolve in the wake of uncertainty and risk. The recent outbreak of the Coronavirus threatens to undermine use of shipping options that would involve air freight between the U.S. and China, explains Wired. New hazmat regulations are taking effect in 2020. Retailers are trying to stay evergreen and compete with Amazon. The list of risks is endless, and the only way to really succeed will lie in understanding the trends in shipping by vertical and a few key sectors that require vigilance in the coming year.

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Spotlight

Runnr

As a B2C platform, Runnr is an on demand food ordering platform that brings you food from restaurants near your location. Just like Runners, our Runnrs go around town delivering delicious cuisines to your doorsteps. With Runnr’s location based services, you can go through and pick from the latest menus of restaurants and live track your order as it reaches you. With no minimum order and lightning fast delivery, there’s no reason to step out of the comfort of your home.

Related News

DHL launches intelligent urban drone delivery service in South China

Air Cargo News | May 17, 2019

DHL Express has entered into strategic partnership with autonomous aerial vehicle company EHang to jointly launch a fully automated and intelligent smart drone delivery solution to tackle the last-mile delivery challenges in the urban areas of China.This cutting-edge solution takes its inaugural flight for a DHL customer, making DHL the first international express company to provide such a service in China. The new customized route covers a distance of approximately eight kilometers between the customer premises and the DHL service center in Liaobu, Dongguan, Guangdong Province.

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Global Drone Logistics Market 2018 Competitive Scenario

DigiBulletin | October 29, 2018

The Market Research Study titled Global Drone Logistics Market Size, Status and Forecast 2025 by ResearchStore.biz specializes in current industry updates provides attention on global Drone Logistics Market and offers a proficient and organized analysis. The report reveals size, share, trends, dynamics, growth, and sales as well as manufacturer, demand, revenue, consumption, and futuristic estimation for the year 2018 to 2025. Going further, the report encompasses complete business structure and facts related to the industrial scenario. This report analyzes the top players in the global market and splits the market by product type and applications/end industries. It gives special importance to the key strategy, methodologies, and the approaches of the top vendors in order to help businesses explore the new market opportunity.

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Is Uber planning drone delivery by 2021?

Supply Chain Dive | October 22, 2018

Uber CEO Dara Khosrowshahi confirmed that the company is working toward drone-based food delivery in an on-stage interview at a conference back in May, but this report from The Wall Street Journal is the first indication of a timeline-through the retraction from Uber leaves that timeline unconfirmed. The possibility of drone delivery by 2021 is making headlines because of the numerous technological and regulatory hurdles still in place. President Trump signed the Federal Aviation Administration (FAA) Reauthorization bill earlier this month, which paved the way for drone-based delivery, mandating regulation to enable the use of drones for the delivery of consumer goods.

Read More

DHL launches intelligent urban drone delivery service in South China

Air Cargo News | May 17, 2019

DHL Express has entered into strategic partnership with autonomous aerial vehicle company EHang to jointly launch a fully automated and intelligent smart drone delivery solution to tackle the last-mile delivery challenges in the urban areas of China.This cutting-edge solution takes its inaugural flight for a DHL customer, making DHL the first international express company to provide such a service in China. The new customized route covers a distance of approximately eight kilometers between the customer premises and the DHL service center in Liaobu, Dongguan, Guangdong Province.

Read More

Global Drone Logistics Market 2018 Competitive Scenario

DigiBulletin | October 29, 2018

The Market Research Study titled Global Drone Logistics Market Size, Status and Forecast 2025 by ResearchStore.biz specializes in current industry updates provides attention on global Drone Logistics Market and offers a proficient and organized analysis. The report reveals size, share, trends, dynamics, growth, and sales as well as manufacturer, demand, revenue, consumption, and futuristic estimation for the year 2018 to 2025. Going further, the report encompasses complete business structure and facts related to the industrial scenario. This report analyzes the top players in the global market and splits the market by product type and applications/end industries. It gives special importance to the key strategy, methodologies, and the approaches of the top vendors in order to help businesses explore the new market opportunity.

Read More

Is Uber planning drone delivery by 2021?

Supply Chain Dive | October 22, 2018

Uber CEO Dara Khosrowshahi confirmed that the company is working toward drone-based food delivery in an on-stage interview at a conference back in May, but this report from The Wall Street Journal is the first indication of a timeline-through the retraction from Uber leaves that timeline unconfirmed. The possibility of drone delivery by 2021 is making headlines because of the numerous technological and regulatory hurdles still in place. President Trump signed the Federal Aviation Administration (FAA) Reauthorization bill earlier this month, which paved the way for drone-based delivery, mandating regulation to enable the use of drones for the delivery of consumer goods.

Read More

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