Autonomous Vehicles transforming supply chains by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

Last Mile Delivery and Distribution Center Implications

The final mile of delivery is usually a bottleneck in the delivery process, both to suppliers and distributors alike. They result in delays frequently, even with the close proximity of the product to the end consumer. Thus, companies have begun experimenting with autonomous vehicles, that could deliver goods to the end costumer without the presence of a driver within the vehicle. Self-driven vehicles seem to affect coordination by decreasing costs and delays. They may to incredibly affect distribution and production centers as well. A common hone has been to construct these in cheaper areas, where good roads and human resources were available. With a move in customer prerequisites that presently call for speedier deliveries, these huge centers will have to be built closer to the end buyer. These centers will also have to be smaller in size, since companies want to be present near the end consumer at various places rather than being present in limited or central locations. This would increase the cost of real estate, warehouse costs and operational costs. However, these costs can be offset by the reduction in costs due to the implementation of these autonomous vehicles for the last mile deliveries. These vehicles can operate for longer hours, are less prone to accidents due to human errors, thus increasing operational efficiencies.

No drivers for long hauls

It is most likely that these autonomous vehicles will see their implementation in long distance travel first. Since driving on highways is more predictable than on city roads, it requires for lesser skills to navigate. Currently, a large chunk of the transportation costs arise from having to pay drivers. Also, drivers can only drive for a certain number of hours at a stretch and then need to rest. Thus, the vehicle lies idle for that duration. Hence, driverless vehicles would reduce these costs and improve efficiencies.

Corporations are also looking into “platooning”,  in which a group of trucks would travel together over long distances.  The lead vehicle would fix a speed and direction and the following vehicles would just have to follow it.During the last leg of the travel, or the last miles, these vehicles would go in their separate directions respectively. This would not only reduce the costs of having drivers, but also reduce the risk accidents and fuel costs.

Reference:

Impact of Autonomous Vehicles in Your Supply Chain – Bâton Global. (n.d.). Retrieved from https://www.batonglobal.com/post/impact-of-autonomous-vehicles-in-your-supply-chain.

Questions:

  1. How will autonomous vehicles change supply chain as we know?
  2. How will driverless vehicles solve the last mile delivery issue?
  3. How can driverless vehicles be used to reduce transportation costs?

 

 

SELF DRIVING VEHICLES-Disruptive Innovations transforming the Future of Supply Chains by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

SELF-DRIVING VEHICLES

News headlines continue to spread the word about self-driving vehicles, often emphasizing the potential for passenger cars to gain mass traction. Supply chain and logistics professionals, however, are considering the ways this new technology could dramatically alter their operations.

Driverless trucks have the potential to reduce labor costs and increase efficiency—after all, a driverless truck can travel straight to its destination without breaks for sleep and food. And self-driving vehicles could also be used to transport items inside warehouses and other facilities.

“Self-driving vehicles unlock new levels of safety, efficiency, and quality within the logistics sector,” Hewitt says. “They will transform the supply chain by autonomously loading and transporting all shapes and sizes of products.”

The ongoing commercial driver shortage appears certain to intensify in the near future, especially if the economy improves. Waggoner cites the possibility of the United States being 175,000 drivers short of demand in a few years. This shortage will likely play a major role in debates over the viability of driverless vehicles.

“The worsening driver shortage will put pressure on pricing and capacity,” he says. “That may not be enough to accelerate their implementation, but driverless trucks could help alleviate the problem.”

No matter the obstacles, supply chain executives see the move to self-driving vehicles as inevitable—a matter of when, not if.

 

References:

https://www.inboundlogistics.com/cms/article/6-technologies-guaranteed-to-disrupt-your-supply-chain/

Questions:

  1. How will the shortage of commercial drivers affect the supply chains?
  2. How will the driverless vehicles affect the logistics?
  3. How will the driverless vehicles enhance safety and efficiency of supply chains?