Lots of news last week about the use of drones in supply chain and logistics operations.
As reported by Joann Muller at Axios, “Walmart and drone delivery partner DroneUp are ending drone delivery in three states to focus on perfecting the airborne package delivery service in the Dallas-Fort Worth area.”
“We’re really focusing on automation, and a drone with higher payload capacity and longer range,” DroneUp CEO Tom Walker told Axios.
Why is this important? Because drone delivery is too expensive at the moment. According to Walker, it costs about $30 to deliver a package by drone, but they’re aiming to get it below $7, which would be close to the cost of ground delivery.
How will DroneUp get the cost down? By further automating the delivery process. Here are some details from a August 6, 2024 press release on what the company has been able to achieve so far:
Increased Deliveries Per Hour – DroneUp has reached a new industry benchmark with a record-setting 40 deliveries per hour carrying up to 10 lbs weight capacity.
Improved Pilot-to-Drone Ratio – Automation testing has achieved a one to many operator-to-drone ratio, which aids in driving down the cost of delivery for DroneUp’s partners.
Leveraging Innovative, Proprietary Software – Uncrew: DroneUp’s Cloud-Based platform allows users to manage missions from anywhere globally, utilizing real-time geodata from UTM for accurate airspace, terrain, and traffic information. Automated mission plans are generated from HubOps Mission Requests, allowing operators to safely and efficiently oversee up to 20 concurrent missions through a unified interface.
Also last week, A2Z Drone Delivery, Inc, launched “a portfolio of autonomous drone docks and a companion UAV adapted for the system’s automatic charging capability.” Here’s more from the press release:
The A2Z AirDock offers the unique ability for UAVs to move from dock-to-dock to automatically top off batteries and pick up or deliver packages, infinitely expanding the drone’s service area. A2Z Drone Delivery is offering multiple variants of its portable single-drone docks and permanent multi-drone docks. A single A2Z AirDock can be deployed to eliminate the human labor associated with recharging a drone, or multiple AirDocks can deploy as a network to more-affordably scale the reach of multiple drone services operating on a shared infrastructure.
“Unmanned aerial drones can bring a great deal of efficiency, emissions reduction and cost-savings to many applications, and our new AirDocks enable those services to reach farther while minimizing the financial barrier to entry for such a dynamic infrastructure in the sky,” said Aaron Zhang, CEO and Cofounder of A2Z Drone Delivery. “With the sharable nature of our new drone docks, multiple UAVs can operate in the same area on the same dock network, to more readily bring on-demand, autonomous drone capabilities online across a vast region.”
No doubt, a lot of progress has certainly been made over the past decade with drone delivery. However, as I said back in June in “How Much Would You Pay For Drone Delivery?”, considering the current costs involved (and other technological, regulatory, and societal hurdles remaining), a lot more work is still required to make drone delivery cost-effective and scalable.
The business case for using drones in warehouses and yards, however, is much stronger at the moment. IKEA, for example, announced “the next phase in its drone technology: an upgraded AI-powered system capable of operating alongside co-workers around the clock.” Here are some details from the press release:
In 2021, IKEA launched an innovative collaboration with Verity, a provider of AI and robotics, to develop a fully autonomous drone solution for its warehouses. The first drone took flight in IKEA Switzerland, and today, more than 250 drones operate across 73 locations, in nine countries.
The implementation of 24/7 operational drones is transforming IKEA inventory management, significantly boosting operational efficiency whilst also enhancing co-worker productivity. The new system enables simultaneous inventory checks, eliminating the need to block aisles and disrupt workflows. Co-workers can take immediate actions based on real-time data from the drones, significantly increasing product accuracy, and decreasing their workload.
Integrating 24/7 operational drones into IKEA warehouses is not only a great step in inventory management but also a boost for employee well-being. By taking over the physically strenuous task of inventory checks, these drones reduce the ergonomic strain on co-workers, allowing them to focus on lighter and more interesting tasks.
According to Parag Parekh, Global CDO for IKEA Retail (Ingka Group), ‘’The IKEA drones use an artificial intelligence-based algorithm to identify and photograph product storage locations. In addition, drone flights are pre-scheduled, utilizing a custom indoor positioning system to navigate higher levels of storage locations (for levels 3 and up). Equipped with obstacle detection capabilities, these drones can avoid collisions by rerouting their paths.’’ According to the company, the solution complies with all Data Privacy assessment requirements, including the safety, integrity and privacy of co-workers.
A lot has been written about the use of robots in the warehouse, especially Autonomous Mobile Robots. For example, see “The Tipping Point And Business Case For Warehouse Robots” and “Robots In The Warehouse: A Question Of When.” But as IKEA makes clear, flying robots (aka drones) will be working alongside AMRs and humans too.
In short, drone delivery for most of us is probably still years away (if it ever truly happens on a large scale), but the warehouse of the future is already here.
