The latest parcel delivery technologies and the most efficient concepts, to reduce the logistics cost and time in E-commerce. (December 2017)

1. DRONE
Internet of Things - LSCM PROJECT WORK 2017-2018
Aria Goudarzi
The Latest Concepts &Trends
in Package Delivery
TECHNICAL UNIVERSITY OF WILDAU
LAST MILE CONCEPTS

2. Outlines
 Current Challenges
 The Latest Solutions
 The Latest Efficient Methods
 Conclusions
 Outlook
Author: Aria Goudarzi

3. Current Challenges
• The last mile delivery cost has a high share of logistics cost.
• The cost and time are key factors of the last mile delivery optimization.
• Satisfying same day or instant delivery is not reachable without using new
trends.
• Using technologies in order to optimize the last mile cost is costly.
• Being environment friendly is being more considered.
• Customers willingness to pay for premium delivery service is not significan
t but so growing.
Author: Aria Goudarzi

4. The Latest Solutions (Drones)
Technical:
• Can fly by the speed of 40-100 mi/h
• Can carry packages up to 5 kg
• Requires developed IT infrastructure
• One well trained operator per 8 drones
• 2 hours fly by the max speed
Future:
• Will be able to carry packages up to 15 kg
• Cross ducking Bluetooth technology
• 13% of Germany fast delivery in 2025 (500,000,000 trips per day)
• 1 euro cost per fly (Amazon Prime Air)
Question:
• Are the customers willing to pay for this service?
Challenges:
• Not cheap at all
• The companies require large number of them
• Min 2 squared meters to land
• Battery life cycle
• Public acceptance
Author: Aria Goudarzi

5. The Latest Solutions (Drones)
Public acceptance for the items to be carried by drones:
Author: Aria Goudarzi

6. The Latest Solutions (Droids)
Technical:
• Can move by the speed of 6 Km/h
• Can travel maximum 16 km
• Can use sidewalk instead of streets
• Can use GPS signal plus 6 to 9 smart cameras
• One supervisor is enough for 8 droids
Future:
• Speed up to 25 - 30 km/h
• Will be able to use streets
• Economically reasonable
• Focus on grocery & food delivery
• 3% of Germany fast delivery
in 2025 (250,000 trips per day)
Question:
• Droids or Bikes ?
Challenges:
• Efficient for short distances
• Willingness to pay for this premium service
• Risk of investment (Technology development)
Author: Aria Goudarzi

7. The Latest Solutions (AGV)
- Concepts:
• Google Self-Drive car and big Data
• DHL self-drive trucks
• Domino’s Ford Fusion
• Amazon AGV warehouse
Question:
• Electric vehicles are green?!
Author: Aria Goudarzi

8. The Latest Solutions (AFC)
Concept
• AFC (airborne fulfillment center)
• Amazon on December 2014
• A solution for flying time of drones (Battery Challenge)
• Using Big Data
• Legal issue
Author: Aria Goudarzi

9. The Latest Solutions (Pipelines)
Mole Solution
• On-ground & under-ground pipelines
• Links the supply chain networks (ports, regional distributi
on centers, warehouses and retailers) inside the city
• Automatically load & unload
• Reduces costs (human resource, fuel and maintenance)
• Fully electrified
• Works 24/7
• Weather or traffic influence
• Safe and secure
• Environment friendly
• Control the cargo temperature
• 1.3m diameter for bulk,
• 2.4m diameter for normal pallet urban distribution
• 5m diameter for container transportation
Author: Aria Goudarzi

10. The Latest Solutions (Parcel Locker)
Access to the parcel receiver became a challenge
• 12% of parcel deliveries
fails at the first attempt
• 30% of parcel pick-ups
has been at the weekends
• 32% has been during the night
Author: Aria Goudarzi

11. The Latest Solutions (Parcel Locker)
Benefits:
• Increasing the sales by making the delivery process more convenient for customers
• Increasing the customer satisfaction and number of people who are willing to shop online
• Reducing the negative online shopping experience in customers mind.
• Cutting off the last mile delivery time
• Reduce the last mile transportation costs for the carrier
• Removes the number of deliveries failure
• Decreases the delivery vehicle miles driven
Locations:
• Town center
• Gas station
• Train station
• Big malls
Author: Aria Goudarzi

12. The Latest Solutions (Efficient methods)
Night Delivery:
Benefits
• No traffic (Less fuel cost – Less delivery time)
• Using vehicles which are forbidden during the day
• Possibility of drive in a higher speed
Challenges
• Businesses and people willingness (Parcel lockers as a solution)
• Public acceptance at urban areas (Electric vehicles as a solution)
• Regulation problems (Pollution reduction as a cause)
• High wage of night shift
Using People as a Carrier:
Author: Aria Goudarzi

13. The Latest Solutions (Efficient methods)
UCCs and Load Pulling Platforms:
• Urban Consolidation Center
• Joint retailers investment
• Shared fully loaded truck
• Introduce the free capacity to capacity demand
• Less fuel, less time, less cost
• Reduction of the last mile costs up to 25%
• UCC as a candidate place for load pulling
Author: Aria Goudarzi

14. Conclusion
• Logistics cost has a high share of goods received to the customer.
This matter has made the logistic sector economical to invest on
research and development.
• Technological developments, by the focus on the two main KPI of the
last mile optimization, which are time and cost, has been presented.
• Battery life cycle as the technical challenge in electric technologies has
been considered.
• Customers willingness to pay for this premium service and the high
cost of investment on the new parcel delivery technologies is a
challenge.
• Optimization methods and trends supplementing new technologies
could minimize the last mile delivery significantly.
Author: Aria Goudarzi

15. Outlook
• insider-trends.com, “8 companies shaping the future of delivery“, Oct 2015. Accessed on 15/11/2017
• inpost.co.uk, “Parcel Lockers research”, May 2013. Accessed on 25/11/2017
• Theverge.com, “DHL drone will make deliveries to German island starting Friday”, Sep 2014. Accessed on 15/11/2017
• Techcrunch.com, “Skype Co-Founders Launch The Starship ‘Ground Drone’ For Deliveries”, Nov 2015. Accessed on 15/11/2017
• Newsweek.com, “ROBOT DELIVERIES TO BEGIN ACROSS EUROPE INCLUDING LONDON”, Oct 2016. Accessed on 15/11/2017
• Newatlas.com, “Autonomous droid makes first fast-food delivery”, Dec 2016. Accessed on 15/11/2017
• McKinssey&company, “Parcel delivery The future of last mile”, Sep 2016. Accessed on 15/11/2017
• McKinsey&Company, “An integrated perspective on the future of mobility”, Sep 2017. Accessed on 15/11/2017
• CNN.com, “Domino's testing self-driving pizza delivery:, Aug 2017. Accessed on 15/11/2017
• cbinsights.com, “Airborne fulfillment center utilizing unmanned aerial vehicles for item delivery, Dec 2014. Accessed on 15/11/2017
• Matias Honorato, “Customer Satisfaction”, April 2016 . Accessed on 20/10/2017
• Stanford Business School, “TECHNOLOGICAL DISRUPTION AND INNOVATION IN LAST-MILE DELIVERY”, June 2016
• https://americanlocker.com/electronic-parcel-lockers-for-parcel-delivery-the-last-mile/. Accessed on 25/11/2017
• https://www.marketresearchengine.com/reportdetails/automated-parcel-delivery-terminals-market-report. Accessed on 20/10/2017
• https://www.cbinsights.com/research/amazon-warehouse-patent/. Accessed on 25/11/2017
• https://www.benchmarkingsuccess.com/technology-as-a-driver-of-last-mile-delivery-performance/. Accessed on 20/10/2017
• https://tookanapp.com/breaking-last-mile-delivery-challenges-solutions/. Accessed on 15/11/2017
• https://econsultancy.com/blog/61816-what-can-retailers-do-to-improve-online-delivery/. Accessed on 15/11/2017
• https://www.Nimber.com. Accessed on 25/11/2017

16. DRONE
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