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For decades, the logistics industry has been lagging behind in the adoption of technology in service provision. However, this has changed significantly over the past few years as a result of the increased adoption of various technologies most of which are aimed at increasing competitiveness and enhancing the provision of services.

For instance, the increasing demand for use of drones and unmanned aerial vehicles and software packages for faster delivery of goods are among the latest additions to the logistics industry which have shaped the landscape for the better.

Although this adoption is gathering momentum, it is expected to drive the logistics market in the coming days. The increasing demand for analytical solutions which are industry-specific is expected to raise the demand for drones in the logistics industry.

Owing to the changing landscape in the logistics sector in favor of drones and competition on fast and efficient delivery, there have been more and more companies looking for this technology to help with logistics. Amazon, for example, is the leader and the most known example of such companies. However, Amazon is only one out of hundreds of companies in many sectors which are now using this technology to ease the delivery of products or items to their customers.

Taking this into account, it is clear that drones will play a crucial role in the logistics sector in the future. While Amazon has been experimenting with delivery with drones in some areas in the US, Alphabet-owned Wing, a drone delivery firm, expects to follow suit in Canberra, Australia after receiving approval from Australia’s Aviation Authority. Wing intends to deliver items for people in about 100 homes in various neighborhoods such as Franklin, Crace, and Palmerston. With this service slowly entering the city of Canberra, you are likely to see more drone deliveries in the future.

The partnership between Wing and local businesses such as pharmacies, local groceries, and coffee shops among others will see many residents receiving basic commodities such as coffee, medication, and groceries at the comfort of their homes with the help of drones. These products will be delivered within a short time reducing cost and time which could have been wasted traveling to your local store. Adoption of drones in product delivery from the store to the end consumer allows you to order a product online through the store’s e-commerce website and a drone would be dispatched to your residence or home within the shortest possible time.

Although the main thing that comes to mind of almost everyone when drones are mentioned is delivery, another area which is viable for this technology in the logistics sector is inventory management. Although this requires larger, heavier duty drones, the future of this technology in inventory management seems bright. These drones could be used to move luggage between different warehouses, items from one store to the other, and balance inventory levels without using trucks. Since retailers have always faced challenges regarding returns and claims, drones can be used to tackle these issues in the logistics sector. For example, a retailer may use a drone to send damaged freight back to the manufacturer. It can also be dispatched to the home of the consumer to replace and pick up a defective product.

Judging by the effectiveness shown by drones in the logistics sector and its increasing adoption by different companies in operations, it is evident that they are soon going to become a much bigger part of logistics. The key benefits of using drones in this sector are that they will help to reduce levels of congestion in our roads and provide a speedy way of serving the consumers. However, the main concern that still slows the adoption of unmanned aerial vehicles is legislation.

Last modified on Monday, 13 May 2019
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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

Find his portfolio here and his personal bio here

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