Last but not least. These words best describe the importance of final mile shipping. It’s the last leg of a shipment, but it’s typically the most expensive and inefficient for retailers.
Whether it’s multiple stops with low drop sizes or heavy traffic, there’s a lot of room for delivery delays and blunders.
Thanks to a booming ecommerce market as well, final mile operations have been strained further. Consumers now expect fast and even free delivery with their orders. Anything short of an on-time delivery could mean a negative review or bad press.
With no sign of slowing down, final mile alternatives are increasingly entertained by the industry.
The final mile problem
Today, virtually all package deliveries from a retailer’s warehouse to a customer’s doorstep are fulfilled by gas-guzzling vans or trucks.
Some retail giants even have their own fleets to deliver orders (we’ve all seen an Amazon van or two with hazard lights on blocking the road momentarily).
Drivers are tasked with zipping all around metro areas dropping off packages at several different addresses.
Between traffic delays, burning fuel between each drop-off point, and labor costs, retailers quickly incur expenses with their final mile logistics.
That’s where drones come in. Many retailers see this unconventional method as a more convenient and timely option for package delivery.
They attest there’s a commonwealth of benefits shipping by drone that doesn’t just help them save on costs, but also improves the delivery experience of customers.
Pros of drone delivery
It wasn’t too long ago that these flying robots were seen as a strangely loud but exciting gimmick people would deploy for video footage at a wedding reception or trip to the Grand Canyon.
Even less than a decade ago, most would scoff at the idea of drones participating in commercial transportation. However, here we are.
Reduced wait times
Unlike traditional delivery vans or trucks, drones aren’t concerned about traffic jams or other road-related delays. The technology carries on its route in the sky and is oblivious to anything happening on the ground.
Most drone delivery systems are semi-automated as well, allowing them to be deployed quickly. Once the drone receives all the instructions it needs from its handler, the intrepid buddy can deliver whatever package is attached to it.
The flight feature also serves a critical advantage for shipping to more remote destinations. A lot of expenses and inefficiencies with standard vehicle delivery occur when serving rural areas of the country. Out there, business consists of typically low drop sizes with each delivery point spread apart.
Other parts of the world have made great use of drone delivery services. Life-saving medications are carried on the backs of drones in countries, like Rwanda and Ghana, where accessibility can be a challenge.
Cost savings
Aside from cutting down on wait, drone delivery can have a positive impact on retailer’s wallets in other ways as well. Similar to arguments for autonomous trucks, drones are not subject to a human driver making errors. Drivers can get lost on a route or miss a shift, but drones will do what they’ve been programmed to do.
There will also be no fuel costs since they are battery-operated while, the autonomous nature of drones may also reduce labor costs with hiring drivers.
Environmentally friendly
All stakeholders in logistics have a role in reducing carbon emissions. Retailers are no exception.
Opting for drone delivery also means opting for a greener practice. Battery-operated drones will cut back on fossil fuels from vans and trucks.
The decision to pursue a drone delivery program will not single handedly solve the industry’s carbon concerns, but at the very least, the approach displays initiative from a retailer that they are doing their bit to cut back on emissions.
Cons of drone delivery
However, like any novel technology, drone delivery has its caveats.
Limited reach, small volume
At this time, only local and smaller deliveries can be made. Even the most powerful drones have relatively short flight times due to their battery capacity.
Deliveries are restricted to the nth degree of proximity and cannot exceed the immediate area around the origin.
Drones also have less storage capacity than delivery vans or trucks. Most of them are seen only carrying one package and, if there are more than one attached, cannot exceed loads of usually 20 pounds. Of course, there’s likely exceptions to this, but they’re not as widely available.
Bad weather
Weather is a factor any type of transport mode has to consider.
Drones are especially vulnerable to certain weather conditions. While some are hearty enough to fly in the rain or cold, sometimes Mother Nature just wins. Thunderstorms, heavy rain or snow, and strong winds will keep these delivery drones grounded.
High initial cost
Like battery electric for trucking, retailers could see drones cutting back on fuel costs in the long run, however the initial price to switch over can be quite intimidating.
Establishing even a modest drone delivery system will require sizeable investments of both money and time. And, while labor costs associated with vehicle drivers may recede, new positions will have to filled with this system, such as operators and pilots.
Privacy concerns
If everyone was asked for their opinion on drones, the first concern most share is how unsettlingly creepy this technology can be.
Even if the drones serve a distinct purpose of delivering packages, many onlookers may feel like their privacy is being violated.
These drones will have cameras equipped for practical purposes, like quality control or safety, however what will they inadvertently pick up on as well?
Will Amazon capture you mowing the grass while its drone delivers your neighbor Whole Foods?
Final Thoughts
Drone delivery may become wide scale in the coming years. Top drone delivery companies Zipline and Wing have both been pursuing ambitions of nationwide deployment as early as next year.
However, regulatory hurdles exist for any new technology.
A big challenge for drone delivery will be airspace restrictions. It’s not uncommon for drones to be banned a certain distance from airports, federal properties, or public venues.
If regulation and delivery systems aren’t on the same page, we’ll be seeing some packages shot down.
Please contact us if you have any questions regarding this topic or any others in domestic logistics. In addition, stay up to date with weekly headlines from both trucking and rail via our Road Map newsletter.
Recent Comments