Assessing Feasibility of the Delivery Drone
Author(s)Butcher, Blane; Lim, Kok
Service level growth is hindered by declining activity from customers needing access to physical assets stored by the sponsor company. The delivery drone presents a viable option to support the initiative of maintaining service levels while reducing cost. To explore the feasibility of the delivery drone, a comprehensive review of delivery drone technology, application, implementation, and regulations is paired with an operational and financial analysis for the sponsor company. The analysis reveals that, given the current landscape, 0% of current deliveries are eligible for drone delivery, but the future potential is as high as 35%. While the delivery drone is capable of maintaining service levels, it has yet to show cost savings potential or practical operational practicality.
Strategy, Transportation, Environment, Last Mile, Urban Logistics