In our recent blog post, “How collaboration, technology and innovation have shaped the home delivery experience in 2016”, we identified drones as one of the technological advances that made a splash in the home delivery industry in 2016. Since then the discussion around drones has only intensified with retail giant, Amazon, completing its first delivery by drone.
Before mainstream adoption of drone delivery can become a reality there are a number of challenges to overcome. With regulatory restrictions, safety and privacy concerns and, for many operations, a large-scale investment in infrastructure required, it remains to be seen whether drone home delivery will become a reality. So, how do you decide if drones would work for your business or indeed, for your customers? Let’s start with the advantages.
Faster delivery – It is no secret that customer demand for faster delivery options is growing. Many retailers are offering a range of options in an attempt to satisfy this desire with next day, same-day and even delivery within a few hours of purchase becoming popular. However, with the Amazon trial completing delivery just 13 minutes after the point of sale, customers may soon be expecting even faster delivery. Drone technology could provide the platform for retailers to expand their current capabilities to meet this demand.
Driver shortage – As the driver shortage continues to exert pressure on logistics operations, many in the industry are looking to driverless technologies for the answer. A single drone pilot would be able to operate multiple, autonomous drones concurrently, potentially allowing more deliveries to be made with a smaller number of staff. It is even possible, that a stronger focus on technological advances could help address the negative and out-dated image of the transport industry, driving the interest of younger talent that has been missing over recent years.
So what about the disadvantages?
Security – Flying a product-laden drone, out of the line of sight poses a security risk for retailers that has not yet been fully addressed. The unmanned nature of drones means they would be highly susceptible to theft, not only for the goods they are carrying, but also for the equipment itself. While GPS tracking and video equipment may be able to act as a deterrent to this threat, they in themselves raise concerns around privacy, which may require further regulatory consideration. For most retailers, particularly those carrying high value items, it would be foolish to embark on a costly drone implementation, without being confident that goods are secure.
Populated areas – Drones are likely to be of most use in densely populated areas, where congestion and traffic restrictions make operations more complex and delivery distances are shorter. However, many of the home delivery drone trials we have seen in the headlines over recent months have taken place in rural or sparsely populated areas, where the drop-off is a garden or clear outdoor area. The question of how drones would fulfil deliveries to multi-occupancy buildings or properties with no outdoor space remains. This problem, combined with the fact that it would be difficult to obtain the concrete proof of delivery readily available with a driver and proof of delivery app, could open up many retailers to further customer disputes.
Retailers selling small or convenience items that already have a widespread network of physical locations are best poised to take advantage of the benefits of drone technology in populated areas. With driverless technology trials from 7-Eleven, Dominoes and Just Eat already underway, brands offering these convenience services are clearly already recognising the potential of drone home deliveries.
However, implementing a comprehensive drone strategy is unrealistic for a majority of brands. There will be those who:
For these companies, focussing on customer service and the delivery experience as a whole should remain the top priority. By focusing on a range of solutions such as collection points, delivery lockers and strategic partnerships will enable them to provide quicker fulfilment options for their customers in sustainable ways. It is also important to remember that ‘as soon as possible’ will not always be the most convenient option and choice and accuracy can be just as critical.
Drone delivery is not an all-encompassing solution and will not suit all businesses, all products or even all customers. When designing a home delivery experience for your brand, it is essential to start with the service your customer desires and the brand experience you wish to leave them with. Then, you can choose solutions, technologies and partnerships that will enable you to achieve these objectives while improving operational processes, reducing costs or improving productivity.
