As drones continue to advance, many businesses are scrutinizing the potential of this technology to optimize their logistics and supply chain operations. The below infographic explainer guide from 2Flow explores the development of delivery drones and explores their positive ramifications for businesses.
The Rise of Delivery Drones
Over the past few years, major strides have been made with regard to the use of commercial drones. We are now seeing major global brands such as UPS, Amazon and Domino’s experiment with this technology in an attempt to streamline their supply chains. In the US alone, drone delivery has surged from a $40 million industry in 2012 to $1 billion in 2017. McKinsey’s projections back this up, they predict that in the future up to 80% of all items will be delivered by self-driving vehicles and drones.
Make Logistics Operations More Eco-Friendly
Delivery drones could present businesses with an excellent opportunity to improve their green credentials. Approximately, one-quarter of all transportation emissions come from the use of trucks. Potentially, electric-powered drones could be used in tandem with trucks and this could help to slash both energy use and greenhouse gas emissions.
Better Last-Mile Connectivity
The most complex part of a package’s journey, last-mile delivery is believed to account for up to 50% of the total distribution cost. Delivery drones could help to maximize the efficiency of last-mile delivery, particularly in urban areas.
Faster Fulfilment Times
Consumers in today’s on-demand economy have come to expect fast delivery times. In contrast to trucks, drones have the ability to travel “as the crow flies” – meaning that they can avoid congestion and complex routes. Data from The Walker Sands Future of Retail 2016 Study indicates that 79% of consumers would be likely to request drone delivery if their package could be delivered within an hour.
What Are the Challenges Preventing the Widespread Use of Delivery Drones?
Before cargo drones go mainstream, there are still a number of critical issues that need to be resolved. Of these, the airspace regulation presents the biggest challenge, as these are greatly limiting where drones can currently travel. The short battery life of drones means that they are not yet a practical choice for delivery services.
If you are curious about delivery drone technology and would like to learn more, then why not take a look at the infographic below.