center135807SCM 930 NZS ” TRANSPORTATION00SCM 930 NZS ” TRANSPORTATIONleft1828110BUSINESS REPORT: ADOPTION OF DRONE DELIVERY AND ITS IMPACT ON TRANSPORTATION & LOGISTICS INDUSTRY.00BUSINESS REPORT: ADOPTION OF DRONE DELIVERY AND ITS IMPACT ON TRANSPORTATION & LOGISTICS INDUSTRY.center4500411Submitted BY:Zankit Shethia (137678173)Milindkumar Patel (120002183)Submitted to: Prof. Lisa ThomsonDate: March 27, 201900Submitted BY:Zankit Shethia (137678173)Milindkumar Patel (120002183)Submitted to: Prof. Lisa ThomsonDate: March 27, 2019Executive SummaryThe Unmanned Aerial Vehicle (UAV), unknown as Drone, is a small aircraft without a pilot and consist of many inbuilt motion sensors.
This technology is going to revamp the Logistics and Supply Chain industry in the future, by delivering goods to the end consumer to their backyard within a shortest span of time. Drone delivery technology can reduce the delivery time significantly by avoiding traffic which is usually faced by trucks and marginal reduction in human cost linked with the delivery of packages. After the successful launch of Drone Delivery by Amazon, named the delivery as Amazon Prime Air, many other logistics companies like UPS, DHL and FedEx has tested drone delivery successfully and are still under research stage to finalize this feature within their companies for adopting as a means of delivery.
Global consumer’s reaction towards Drone delivery in coming 5 years shows that it is going to be one key technology in logistics & supply chain industry. Around 32% people confessed the usage of drone delivery in coming 5 years. In addition, drone delivery will create huge impact on the environment by reducing pollution. However, pharmaceutical companies can be most beneficial in delivering the medicines in emergency case to the rural and remote area.Contents TOC o “1-3” h z u Introduction: PAGEREF _Toc4536495 h 3Introduction of Unmanned Aerial Vehicle (UAV): PAGEREF _Toc4536496 h 3Retailers and companies using Drone as a mode of Delivery: PAGEREF _Toc4536497 h 4Amazon: PAGEREF _Toc4536498 h 4UPS: PAGEREF _Toc4536499 h 5FedEx: PAGEREF _Toc4536500 h 5DHL: PAGEREF _Toc4536501 h 5North American Consumer Opinion on Drone Delivery: PAGEREF _Toc4536502 h 6Drawbacks of drone delivery: PAGEREF _Toc4536503 h 8Conclusion: PAGEREF _Toc4536504 h 9Works Cited: PAGEREF _Toc4536505 h 10Introduction:Logistics & Supply chain industry is growing rapidly and with the never ending evolution of technology and internet, delivering products to the end consumer has never been better, easy and convenient as it is at present. Considering online ordering, buying groceries and even shopping beauty products, cloths and accessories, technology and internet has made everything faster and efficient. Drone delivery system has been introduced by many companies in the market that can be used for delivering product at the doorstep of the customers. Adopting drone delivery technology would reduce delivery time, human and labor cost, transportation cost integrated with the deliveries and improved accuracy and most importantly quality of product will be the finest.Introduction of Unmanned Aerial Vehicle (UAV):A drone is basically an aircraft without a pilot. That means its flight is either autonomous or is controlled by a remote control. Drone are of different types and size, large drone comes with stabilizer and some are regular size either have GPS or a Camera and some have both. Traditionally, drones were used by military to keep an eyes at those location where it is dangerous and impossible for someone to go. However, drones used now-a-days are autonomous, though early UAV’s were not autonomous at all. Today’s drones have built-in control system features which helps them to perform low human activities like speed and accuracy. In addition, they also have motion sensor which help them to avoid collision from the things coming in their ways. Large retailer like amazon , DHL have successfully tested drone for delivering products to the customer to provide them faster delivery, good quality products, etc. (Guilmartin) Retailers and companies using Drone as a mode of Delivery:Amazon:Amazon is considered the world largest online retailer for shopping. It has been attracting the customers around the world with its new offer, promotion and delivery option such as amazon prime. Now going further, in the technical era, amazon is experimenting the drone delivery. They named the new feature as AMAZON PRIME AIR. Company plans to deliver the parcel to the consumer within 30-35 minutes after the order has been placed. At the time of launch event of amazon prime air feature, company presented real footage to the people showing a customer places an online order and chooses the option of Amazon prime air delivery. The order is packed and kept in the yellow container made of plastic and passed onto the belt through a conveyor, which carries the container to the path than to the target point where Amazon prime air is located. Now, as the drone sense the yellow container its arm get attached to the container and drone takes off immediately through its blade in the body. Later, Prime air drone lands in the customer backyard, leave the parcel and return back to its location. Later customer comes and picks the parcel. The total duration for this process is 30 minutes as promised starting from customer ordering it to ending up by picking the parcel in his backyard. (Amazon)Though, during the launch event of this technology, amazon faced many challenges which were needed to be solved before starting the actual delivery to the customers. For testing the drone delivery, amazon received the permission from the Federal Aviation Administration (FAA) in March 2015 under certain conditions, such as operators of the drone must possess a valid private pilot license and drones are allowed to fly up to 400 feet of range. (Amazon)UPS:In 2017, UPS announced that they had successfully tested drone delivery. UPS has completely different way than any other drone has done so far. For UPS, drone take off from the top of package cars and return back to the cars for the next delivery. For UPS, sometimes delivery destination is miles apart, so, sending drone from a package cars to deliver one of those courier which reduce their miles. Through this delivery, the drone makes a delivery and driver also continue to deliver the courier as well. By adopting drone delivery features UPS can save up to $50 million per year. (Lithia)FedEx:FedEx is the major transportation and logistics company with the network over 220 countries in the world. The company is doing research on adaptation of drone delivery to transport the courier to its customers. Company officials said that they went through some conversations with few drones manufacturers regarding drone deliveries. Company also added that though it will not become a widespread element globally, company will experiment with this technology with certain city range during initial stage. (Bermingham)DHL:In December, 2013, another major logistics company DHL has done the successful trial experiment on drone delivery in Germany. Company named this service Parcelcopter that could be used to provide goods quickly in emergency situations in hard-to-reach remote areas. Company said that they are planning to expand this technology globally with their next generation versions of parcelcopters. (Berg)North American Consumer Opinion on Drone Delivery:The most common desire for the customers for the delivering companies is to receive the damage free parcel with in the shortage delivery span. Since the last decade, many fast parcel delivery features have been introduced to the North American countries like amazon prime through which customers get the goods parcel within a day. Though North American consumers are facilitated with faster deliveries, they expect even quicker deliveries in the future. With the current technological advancement, drone deliveries could deliver the products to large portion of distance with in span time of few hours for North Americans. There is a statistics pole available on web called Statista that collects the opinion from the users on different streams. The below survey statistics from this portal shows the percentage of online shoppers in the United States who would or would not use the option to have the order delivered by drone as of April 2017. This survey gives us the idea that huge percentage of consumers within North America are excited about receiving deliveries through drones. This statistic illustrates the findings of a 2016 U.S. consumer survey on whether respondents think it will take one, two, five or more years before their first package will be delivered via drone. Most of the consumers believe that it will take more than 5 years approximately for establishment of this system commercially within whole country.(When do you think you will order your first drone-delivered package?) Drawbacks of drone delivery:Cost of Device: Drone has just been introduced in the market, so it will be very expensive and only large company can afford it to improve its logistics system. (Anonymous)Affordability: As drone will provide fastest delivery option to the customers, it will also cost them more. Hence, not all customer can afford the price of drone delivery. Therefore, it will be a big concern for the company before investing large amount of money in this feature. (Anonymous)Security: As drone flies independently in the atmosphere, it can easily be stolen when it lands down for the delivery by disconnecting its power supply where operating authority will no longer have access of their property. (Anonymous)Conclusion:Adopting drone technology for delivering products to the customers would be successful for the factors such as convenience, cost efficiency, fastest delivery time, reduction in labor cost associated with shipping and staffing, etc. Apart from the above mentioned factors, it will have a significant positive impact on the environment. Using drone for delivery will eliminate the use of road transportation such as trucks, that’s not only consume fuel but also harms the environment by emitting smoke. This will make the life of human beings as well as other living organism better. Taking done delivery as a positive means of delivery, it will create a huge impact on pharmaceutical industries by delivering medicines quicker in emergency case. With the help on drone many company will have access in the remote and inaccessible areas. Looking at a rapid growth in the technological area, in coming 10-15 years, customer might receive the order of pizza at the window instead of front door. Works Cited:Guilmartin, John. Unmanned aerial vehicle. Encyclopedia Britannica. 2019. Officials. Amazon Prime Air. Amazon. December 2016.. Fla. UPS Tests Residential Delivery via Drone Launched From atop Package Car. UPS Pressroom. February 21, 2017. Oliver. DHL begins drone delivery in Germany. CBC News. September 25, 2014. Finbarr. FedEx Researching Drone Delivery But Not For Widespread Use. International Business Times. October 21, 2014. you use the option to have your order delivered by a drone?. Statistia. April 12 to 14, 2017. do you think you will order your first drone-delivered package?. Statista. 2016. Pros and Cons of Delivery Drones. Grind Drone. October 07, 2017.