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Drones in Supply Chain: Are They Advantageous or Troublesome?

Suppy Chain Blog
Drones may be troublesome at some points in the supply chain. It can cause many hurdles and safety hazards. But what about the vast potential that drones carry to assist and even improve safety?

The topic of discussion in this blog revolves around drones in the supply chain. Are these advantageous or troublesome? The blog showcases both sides of the coin.

According to the global commercial drone market’s study, drones are expected to witness growth of 26%. It is going to reach a value of $10,738m by 2022. Aren’t these figures impressive?

While the pandemic has forced industries and businesses to increase touch-less mechanisms, the increasing demand for contactless deliveries has given drones a wide-ranging opportunity to be reliable. Did you know that over twenty thousand drones are registered for commercial use with the Federal Aviation Administration (FAA) today? Many of which are already being used in the supply chain process.

A study by MarketsandMarkets indicates the drone package delivery market might surge from $528 million in 2020 to $39 billion in 2030 at a rate of 53.8%. Similarly, Gartner estimates that drone delivery will reduce delivery costs by 70%.

These show a promising future for drone technology to hover industries and would significantly affect customers across the globe.


How Exactly are Drones Changing Supply Chain Processes?

Automation is becoming a comprehensive solution in the distribution industry. A report by the Brookings Institute mentions that over 70% of jobs may be automated. In that case, drone technology is the main focus today.

On the other hand, some view automation as a threat. But with the help of automation, drones would make manual jobs redundant and destroy industries like aviation, transportation, production, and others involved throughout the global supply chain. However, several defenders of automation note that drone technology rarely replaces manual work. Instead, it tends to free up workers from a challenging workforce, reduces workloads and increases efficiency. As a result of this, companies become more productive.

In the realm of the supply chain process, drones offer the chance to completely change inventory management ways and shipping methods. And thus, companies can operate quicker and errorless management.
 

“As drones prove to be the next automation technology within the supply chain, businesses globally would do well. But to incur drone technology to their operations, they need to start investigating strategies to see if they would suitable their business model. My advice is to start looking for help from experts to understand the technological challenges, facts, and boundaries of using drones as part of your supply chain processes before going all-in too quickly.”

- Trish Young’s, UK Head of Business Consulting – Retail, Consumer Goods, Travel & Hospitality at Cognizant.

Let’s get into the advantages of drones that supply chain companies and industries are already reaping.


Advantages of Drones


Monitoring Supply Chain Delivery Courses
Drones in the supply chain assist in monitoring supply chain courses for barriers. Therefore, it could positively impact the entire delivery process via transport carriers . In addition, drones are used for monitoring road conditions and other hazards in the delivery process. In this way, a delivery operator can quickly select an alternative shipping process and make efforts to achieve a faster or on-time delivery.

Drones in Warehouses
Drones in warehouses can be used for inventory counting, improving safety before the supply process starts. Warehouses are full of products kept for supply or shipping to different locations via different modes of transport. In this case, using drones, the scanning of products and data will be faster by having barcodes. In addition, as drones are much safer, they eliminate the need for workers to scale up monitoring and thus save time. Here are some other ways drones can help warehouses in:
  • Providing better accuracy
  • Reducing human labor costs
  • Reducing workplace injuries
  • Streamline inventory tasks


Realistic Applications for Drones in Supply Chain


Skyward

Skyward is involved in developing the digital airspace infrastructure around industrial drones. In addition, the company is working on designing software for drones that will assist in the supply chain industries.

“I can tell you this from an engineering background that it is now possible to deliver goods using drones under five pounds, which is 86 percent of Amazon’s inventory, within a 30-minute of radius,”

- Jonathan Evans, the CEO of Skyward

Drones in the supply chain in demand due to its capabilities. Skyward determines the practical application of this technology and develops it for future purposes.


Amazon

Amazon’s Prime Air is a new drone technology-driven pilot program. Amazon is currently focusing on smaller packages under the 5lb range under its supply chain process. Amazon drone delivery is one of the most innovative services, and other companies are getting inspired to develop their drone-enabled supply chain program.


Walmart

Walmart is also taking the approach and reaping the advantages of drones. However, it is going miles apart in terms of using the technology for its supply chain process. Walmart has partnered with some prominent drone companies like Flytrex and Zipline. Flytrex and Zipline are currently doing pilot programs for supply chains and deliveries.


The Obstacles

As drone technology has already taken to the skies and is already operational, it is yet to be seen how quickly regulatory agencies allow the technology to operate without legal restrictions. More than one million drones are ready to take to the skies by 2022. But hurdles like safety risks, privacy issues, and security interference cannot be ignored. In addition, the military and commercial aircraft industry is posing valid concerns about sharing airspace and air interference. There are challenges like the susceptibility to hacking or theft, collision, and high insurance costs that have become a hurdle regarding drones in the supply chain process.

Further, the technology has many limitations that need to be highlighted. Limitations like limited battery life might restrict the operational duration. In addition, weather conditions also need to be taken into consideration. Whether drones can operate during high winds or rains. All these factors might impact supply chain management and may restrict the use of drones further.

However, the role of drones by supply chain companies is only going to ascend in the future. R&D companies are working hard to overcome significant challenges. They are working to provide more and more opportunities above all obstacles to optimize supply chain operations efficiently.


Frequently Asked Questions


How can drones be used efficiently in the supply chain?

Drones in the supply chain can be used efficiently to deliver at a low rate to rural areas. Also, it can eliminate the need for road transportation to save time, be more secure and faster.


How will drones impact the supply chain?

Drones in the supply chain will have a massive impact. Drones will improve service scenarios in industries and reduce costs, workforce, and capital. It can be helpful to manage and monitor inventory set up for products.


What kinds of jobs can drones replace?

Drones can replace five kinds of jobs. They are:
  • Capturing difficult footage
  • Enabling detailed monitoring
  • Spotting errors and implementing an error-free workflow
  • Assimilating huge data records

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Users can take a 30-second ECG recording and view the results immediately on their smartwatch and, optionally, later in the Garmin Connect™ smartphone app. When pilots aren't taking to the skies, they can get a better understanding of their fitness levels and track their performance with more than 30 built-in sports apps and advanced training features like hill score and endurance score. Designed for pilots Built for 24/7 wear, the carbon gray D2 Mach 1 Pro combines a durable design and premium materials like sapphire and titanium with a vibrant and sunlight-readable 1.4" AMOLED display. The 51mm watch case features a diamond-like carbon (DLC) titanium bezel and stainless steel 5-button design, allowing for quick access to flying tools, fitness stats, smart notifications3 and more – all on the responsive touchscreen interface. Compatible with a wide variety of metal, leather, nylon and silicone QuickFit™ bands, the D2 Mach 1 Pro can be styled for every type of event, whether it's a workout at the gym or a night on the town. Premium aviation features on your wrist The D2 Mach 1 Pro includes all the preflight, in-flight and postflight features pilots have come to know and trust from the D2 series, including a worldwide aeronautical database, HSI, Direct-to and moving map — all available without a phone connection. Pilots can stay informed with easy access to NEXRAD3, METARs, TAFs and MOS4 weather reports — alongside custom weather alerts as well as non-weather alerts like time, distance, altitude and a fuel timer. Utilize the wrist-based Pulse Ox sensor5 to monitor blood oxygen levels and barometric altimeter for altitude alerts. And in case of an engine-related issue, the D2 Mach 1 Pro can show the best glide speed, estimated glide distance and glide time, along with a bearing pointer to the nearest airport and a list of alternate airports. Flight logging is a breeze with the D2 Mach 1 Pro, which automatically starts tracking flights on takeoff, then automatically transfers the date, duration, total flight time and route to the user's flyGarmin.com logbook3. Pilots can connect with the Garmin Pilot™ app to seamlessly transfer flight plans to the watch and view the list of waypoints included in their route. Additionally, for pilots operating a PlaneSync™-equipped aircraft, the D2 Mach 1 Pro can be used to access the aircraft dashboard to view status information6 including fuel, electrical, database and location information while away from the aircraft. Customized fitness With dozens of built-in sports apps – including new team sport activities like football, baseball, softball and more – D2 Mach 1 Pro provides data and insights for many passions. Whether working out at a gym or in the comfort of one's home, the D2 Mach 1 Pro tracks activities like strength, cardio, indoor rowing, stair stepping, yoga and HIIT. Users can also take advantage of daily workout suggestions or follow animated cardio, strength, yoga and Pilates workouts right on their watch screen. For those exploring the great outdoors, they can keep track of adventures like hiking, mountain biking, skiing, snowboarding, surfing, whitewater rafting and more. Around-the-clock wearability The D2 Mach 1 Pro is designed for all-day wear and includes advanced health and wellness tools, as well as a suite of smart features to keep users connected while on the go. Loaded with 24/7 health monitoring features, the D2 Mach 1 Pro includes Body Battery™ energy monitoring, all-day stress tracking, jet lag advisor, advanced sleep monitoring and sleep score, and more. Packed with connected features, the D2 Mach 1 Pro lets users receive smart notifications3; download songs from Spotify®, Deezer or Amazon Music7 for phone-free listening; check their calendar; breeze through checkout lines with Garmin Pay™ contactless payments8; and more. Like all Garmin smartwatches, the D2 Mach 1 Pro can be used with either Android or Apple® smartphones. Available now, the D2 Mach 1 Pro includes a vented titanium bracelet with carbon gray DLC coating as well as a black silicone band for a suggested retail price of $1399.99. Garmin products and services have revolutionized flight and become essential to the lives of pilots and aircraft owners and operators around the world. A leading provider of solutions to general aviation, business aviation, rotorcraft, advanced air mobility, government and defense, and commercial air carrier customers, Garmin believes every day is an opportunity to innovate. Recipient of the prestigious Robert J. Collier Trophy for Garmin Autoland, Garmin developed the world's first certified autonomous system that activates during an emergency to control and land an aircraft without human intervention. Visit the Garmin Newsroom, email our media team, connect with @garminaviation on social, or follow our blog. Battery life based on D2 Mach 1 Pro when smartwatch mode is enabled. The ECG app is only available when paired with a smartphone with the latest version of the Garmin Connect smartphone app. The ECG app is not available in all regions; see Garmin.com/ECG for availability. The ECG app is not intended for use by people under 22 years old. With the ECG app, this device is capable of generating an ECG similar to a single-lead electrocardiogram. When paired with a compatible smartphone, with a data connection, and in range of Bluetooth technology. U.S. airports only This is not a medical device and is not intended for use in the diagnosis or monitoring of any medical condition; see Garmin.com/ataccuracy. Pulse Ox is not available in all countries. Remote aircraft status requires active PlaneSync subscription. User's smart device must have internet connectivity. Feature is available on-ground only and requires GDL 60 to have LTE connectivity; signal strength and other factors may apply. See Garmin.com/PlaneSyncCoverage for coverage details. May require premium subscription by a third-party music provider View current supported country, payment network and issuing bank information at Garmin.com/GarminPay/Banks.

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Archer Closes Previously-Announced Financing and Development Agreements to Complete World’s Highest-Volume eVTOL Aircraft Manufacturing Facility

Business Wire | October 12, 2023

Archer Aviation Inc. a leader in electric vertical takeoff and landing (eVTOL) aircraft, today announced that it has closed agreements with Synovus Bank and Evans General Contractors, LLC for the financing and development of its high-volume manufacturing facility in Covington, Georgia. Construction is already underway on the first phase of the Covington facility build out of approximately 350,000 square feet to support production of up to 650 aircraft per year, which would make it the world’s largest eVTOL aircraft manufacturing facility by volume. Archer expects to produce the highest volume of eVTOL aircraft while bearing a dramatically lower manufacturing capital cost than projects announced by competitors in the industry. Today’s announcement secures at least $65 million in financing which represents a substantial majority of the cost of construction for the first phase of Archer’s eVTOL manufacturing facility. In conjunction with previously announced incentives from the state of Georgia and Archer’s partnership with Stellantis, today’s announcement advances the company’s strategy of creating the most capital efficient path to scaled manufacturing. This is also possible due to Archer’s business strategy of partnering with top tier aerospace suppliers, like Honeywell and Safran, for a majority of Midnight’s components, streamlining the manufacturing and assembly process dramatically while allowing for a facility that is set to achieve high volumes of output. Phase one of Archer’s high-volume manufacturing facility is on target to be completed in 2024 ahead of Midnight’s planned entry into service in 2025. Phase two of the facility provides the capability to expand the operation to approximately 900,000 square feet to support long-term production targets of over 2,000 aircraft per year. “The ability to manufacture eVTOL aircraft at scale is critical to building a successful business in this industry and Archer continues to maintain a significant lead on this front. Today, we’re taking another major step forward on our manufacturing buildout by securing a design-build agreement and financing agreement for the world’s first, and largest by volume, eVTOL manufacturing facility,” said Adam Goldstein, Archer’s Founder and CEO. “Consistent with our capital efficient strategy of getting to commercialization, we’ve achieved attractive terms on the project. These agreements, along with our already strong partnership with Stellantis, give us the flexibility to ramp up our capacity and become the leading scale manufacturer of eVTOL aircraft in the world.” Archer has selected Synovus Bank and Evans General Contractors, LLC, respectively, as its financing and development partners. In selecting its partners for the Covington project, Archer considered a range of companies with expertise in high-volume manufacturing facilities in the southeast United States. Goldstein added, “We are committed long-term partners to the community in Covington, Georgia, and we are thrilled to be working with companies who share our vision of having the world’s leading, state-of-the-art eVTOL manufacturing facility right here in the United States.” Archer’s goal is to transform urban travel, replacing 60-90 minute commutes by car, with estimated 10-20 minute electric aircraft flights that are safe, sustainable, low noise and cost competitive with ground transportation. Archer’s Midnight is a piloted, four passenger aircraft designed to perform rapid back-to-back flights with minimal charge time in between flights. Archer’s Midnight aircraft will be manufactured at the company’s high-volume manufacturing facility in Covington, GA before being deployed to different customers and markets in the U.S. and abroad. About Archer Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer's team is based in Santa Clara, CA.

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