Drones in Digital Supply Chain
What is Drone?
A “drone” or Unmanned Aerial Vehicle (UAV) is one of multiple components in an Unmanned Aerial System (UAS). ne of the most used definitions for drone is: “An unmanned aircraft or ship that can navigate autonomously, without human control or beyond the line of sight”. Another frequently used definition is: “Drone is any unmanned aircraft or ship that is guided remotely”.
Role of drones in supply chain management
Logistics companies are planning to use drone technology to simplify their supply chains. Companies are spending a lot of money to overcome problems like last-mile delivery in a logistics company. The use of drone technology can bypass the traditional road network and deliver packages, saving companies fortunes in fuel costs and delighting the customer with quick deliveries. Drones can also be actively used for inventory management, building inspection, intra-logistics, security, and yard management
Drones have come a long way from being a recreational machine to a tool that can invaluably assist companies. They have been successfully used in aerial photography and videography, construction, search and rescue missions, mining activities, security. But lately, companies have started using drone technology to simplify their supply chains and bypass the traditional road network. Not only this, drones have been used for inventory management, building inspection, intra-logistics, security, and yard management.
Organizations are beginning to adopt drones in the first phase of supply chain management: obtaining raw materials. Drone use in manufacturing, warehousing, and distribution facilities is expected to rise in the next five years, aiding the work-in-process inventory stage of supply chain management. UAVs(Unmanned Aerial Vehicles) promise to enhance safety and security as well as promote overall efficiency. For example, drones with cameras can "walk the perimeter" of facilities, seeing areas an ordinary security camera might not reach. Inside of facilities, drones can perform safety inspections, perform maintenance and repair functions like fixing a leaky roof, or fly across a campus to retrieve a forgotten tool – all of which could potentially reduce work hours.
Using RFID, QR-codes, and IoT, drones can take physical inventory. Walmart Stores, for example, is currently testing drones for that purpose. Drones can move small items quickly, reducing the need for forklifts or possibly replacing the conveyor systems often used to transport boxes around distribution centers.Outside of the warehouse, drones may also be used for supply chain deliveries. For example, UAVs could ship inventory between production facilities and distribution centers, potentially expediting order fulfillment.
Drones in Warehouses
In warehouses, drones are used for accelerating inventory counting, optimizing paths around a warehouse when pulling inventory, and for improving worker safety. Scanning inventory, particularly on high shelves, is much faster with a drone scanning RFIDs/Barcodes. And it is much safer as it eliminates the need for workers to scale industrial shelving.
Warehouse drones can:
- Improve how long it takes to count inventory
- Provide better accuracy by eliminating human error
- Reduce human labor costs on repetitive tasks
- Cut down on workplace injuries
- Shorten downtime due to inventory checks
Walmart is testing drones for use in inventory tracking. Early indications are that their drones can conduct a full warehouse inventory check in a single day - a task that usually takes an entire month.
In our current climate of same-day deliveries, inventory management optimization is a strong asset. Warehouse drones can streamline inventory tasks, particularly when their system is integrated with a warehouse’s ERP system.
Drones for Delivery
The last mile of delivery can be the most expensive and problematic. Drones seem a natural fit for getting packages to customers in that last mile.
UPS was recently approved by the FAA and Department of Transport to deliver packages via drone following a successful pilot program delivering medical supplies in remote areas in North Carolina.
Several companies are trialing using drones in tandem with delivery trucks to reduce gas costs and speed up deliveries. This concept could be used as well with railway lines, with drones taking off for a delivery without a rail-car needing to slow or stop.
Amazon’s recent announcements about opening physical locations have some referring to these stores as their drone airports. The stores position Amazon product (and their reach) closer to residencies and will help them achieve their Prime Air 30 minutes or less delivery promise.
Walmart, who has been filing a lot of drone patents over the last few years, filed a patent this year for block-chain technology that will allow delivery drones to pass packages between each other. They hope the technology will allow them to bring down shipping costs for customers as documenting and tracking would be seamless between their drones.