The Future of Drones in Supply Chain Management

We’d be a little surprised if you haven’t yet heard about retail giant Amazon, but have you heard of its plans for unmanned aerial vehicles (UAVs) in distribution?

Indeed, progress reports have been cropping up in the media regularly over the last few years, detailing developments in what has become a convoluted story of trial and tribulation.

So is there really a place for drones in distribution? More to the point, where might their place be? Some pundits are predicting the big advantage of UAVs in the supply chain lies in their use indoors, rather than in sub-500-foot outdoor airspace.

Drones in Supply Chain Management: Waiting for Your Drone Delivery? Don’t Hold Your Breath

There are a few hurdles to be overcome before drones in distribution become a widespread commercial reality, not least of them being the safety aspect and risk of conflict with general aviation users — in other words, pilots of private, military and commercial aircraft.

Certainly, in the United States, the Federal Aviation Administration is taking a very cautious approach to allowing commercial drones into its skies. Delivery drones have the potential to revolutionise logistics and supply chain management by facilitating faster and more efficient deliveries, reducing operational costs, and improving customer experiences, particularly for major companies like Amazon. That’s not to say that the day won’t come.

Technology has a way of surmounting all obstacles and becoming commercially viable and available: it just may not be for a while yet. However, before that happens, we may just see the day when smaller drones fill the airspace of warehouse interiors. Some experts are predicting that the DC is the real drone domain in the supply chain.

The Promise of Drone Technology

Drones in supply chain management can change the way we transport, store and deliver goods. They can fly autonomously and navigate complex environments. The global drone logistics and transportation market is expected to reach $10 billion within the next few years. This is driven by the increasing use of drones in e-commerce, healthcare and manufacturing industries.

The future is a world where supply chains are no longer limited by traditional delivery methods. Drones can bypass traffic, reduce delivery times and provide real-time updates on shipments. This is especially useful for industries that need fast and reliable delivery, like healthcare, where timely delivery of medical supplies is critical. As drone technology evolves, we will see even more use cases that will further improve supply chain management.

Some Possible Benefits of Drones in the Supply Chain

Drones in distribution centres could actually make a lot of sense, especially within warehouses that are already largely automated (meaning fewer people below the flight path). In these environments, supply chain drones could be very useful replacements for rigid, hard-to-configure conveyor systems, enhancing efficiency in deliveries, inventory management, and facility inspections.

Drones could transport boxes around the DC and perform tasks such as palletisation, which automated robots have already proven to be adept at.

Imagine a warehouse that doesn’t need fixed palletisers, where picking routes can be reconfigured at will, simply by changing the programming of aerial drones. Pallets could be built whenever and wherever required, enabling warehouse utilisation to be improved.

Drones in distribution centres offer the potential to increase flexibility and combine the speed of automated handling equipment with the scalability of a manual warehouse workforce.

Furthermore, these drones will operate under a roof, safe from the ravages of nature. Outdoor drones suitable for commercial use have still to prove their ability to operate reliably in high winds, rain and snow.

There can be little doubt that drones will become a commercial reality across many industries. With huge corporations like Amazon and GE investing large sums in their development, the stage is surely set. In the supply chain, however, perhaps we ought to be thinking more inside the box than outside of it when considering the future of UAV technology.

The State of Warehouse Drone Technology

It’s always interesting to look back at an article after a couple of years to see how things have developed. In the case of warehouse drones, or UAVs, it seems our speculation was well-founded, but perhaps a little misplaced in terms of how drones might be used. These UAVs can be remotely controlled and have capabilities in surveillance, photography, and even military operations.

The big challenge in developing drones for picking is in finding a way for them to hold anything other than the lightest items securely (which is why transportation drones are currently limited largely to sub-5kg package and pizza delivery).

However, a number of drone-tech companies, following an interesting breakthrough made by MIT technologists, are now producing UAVs designed specifically for warehouse inventory management.

Challenges and Limitations of Drone Technology

While drone technology can be great for supply chain management, there are several challenges and limitations to be addressed.

Among the biggest challenges are the limited flying space and obstacles inside warehouses, which can make navigation difficult. Integrating drones into existing processes can be time-consuming and sometimes dangerous in environments not designed for unmanned aerial vehicles.

Also, drones can suffer from “garbage in, garbage out”, where inventory gets lost or misplaced due to bad data input. Maintenance and repair costs can be high, and breakdowns can lead to delays or downtime.

Also, the introduction of drones can cause concern amongst workers who fear job displacement. Supply chain managers need to address these challenges and find ways to integrate drones in a way that complements the existing workforce and improves overall efficiency.

Count on Warehouse Drones to Save Costs in Inventory Management

MIT has developed a system comprising small drones that can fly around a warehouse or yard scanning inventory barcodes and RFID tags, greatly reducing the counting workload for humans in large distribution centres. For businesses looking to improve stock accuracy more broadly, effective inventory management remains the foundation.

Drones are not only beneficial for commercial applications; they also play a crucial role in governmental sectors, including military operations, where they are used for surveillance and strategic activities.

The RFID-reading drone can pinpoint and count tagged inventory stowed inside stand trailers, making it invaluable for large distribution centres with outdoor goods yards.

Meanwhile, Walmart is testing similar drones, equipped with optical scanners, to count inventory in its gargantuan US warehouses, the smallest of which is the size of 17 football fields.

The Walmart UAVs, which fly completely autonomously, can each scan a volume of inventory in one hour that would otherwise require 50 humans — that’s a huge time and money saving, especially when multiplied across Walmart’s 150-plus warehouses in the United States.

Supply Chain Implications

Drones in supply chain management have big implications for logistics. Drones can fly autonomously and navigate complex environments, so they can improve inventory management, delivery and monitoring.

Drones can be used for facility inspections, supply chain monitoring and tracking goods. By providing real-time data and insights, drones enable better inventory management and help supply chain managers make informed decisions. The efficiency drones bring to logistics will mean cost savings, faster delivery and better customer satisfaction.

There are several real-world use cases of drone technology in supply chain management. For example, drones can be used for inventory management in warehouses, where they can scan barcodes and provide real-time updates on inventory levels.

Drones can be used for delivery, transporting packages quickly and efficiently to their destinations. This is especially useful in areas with tough terrain or limited infrastructure, where traditional delivery methods may not be effective. By using drones in warehouse operations, companies can achieve better inventory management, increased efficiency and improved safety.

What Do You Think About Drones in Distribution?

Can you see UAVs overcoming safety and regulatory hurdles to become a viable method of goods distribution? Do you think they have a place alongside surface transportation for home delivery — or is there more space for them above the racking of a high-bay warehouse?