How Will Automation Influence Package Delivery?

Robotic with arm conveyor line

We are amid the 4th Industrial Revolution with things like AI, increased automation, and advanced computing driving us forward. E-commerce has greatly disrupted how we do business. Online players like Amazon take a significant chunk of the market from brick-and-mortar stores like BestBuy.

E-commerce logistics is in a constant state of evolution as companies seek ways to get products to customers more efficiently. The difference between a successful e-commerce business and a failing one comes down to speed. Customers making online purchases want items instantly. This is why e-commerce companies are turning to automation to make faster deliveries while reducing costs with developments such as Amazon’s Scout delivery robot.

Facts and Figures on Automated Delivery

According to a recent study, worldwide retail-end automated delivery is set to increase by almost 14.6% by the year 2025. Several companies are already trying out new automated delivery solutions. One idea is the concept of payment on delivery, using what they term as “intelligent parcel delivery terminals”. The same report puts North America at the top of automated delivery adoption, with growth at over 17% by 2025. As such, we can expect to see automation as a front-runner for future developments.

3 Effects of Automation

Automation Will Shift Focus from Logistics to Order Fulfillment

According to Forbes, e-commerce parcel handlers will modify fulfillment methods and delivery speed now that automation is involved.

With this in mind, the automation of parcel delivery will have a ripple effect in the warehousing industry as well. The use of robots in warehouses will increase, and companies will have to be savvy by positioning their warehouses in relation to their customer base.

Security Concerns and The Need to Secure Packages

We’ve already seen cases of package theft and missed deliveries with human couriers. Will automation enhance the security of package delivery or make it worse? It might be too early to tell, as we’ve not yet seen massive deployment of drones in package delivery, but all signs point to the positive side. According to the report by Grandview Research, automation will reduce transportation costs by almost 25% by addressing the problem of failure in last mile deliveries.

That said, there is a need to come up with strategies to secure these automated package delivery systems as they are still prone to hackers and thieves. Automated package delivery panels will have to have enhanced security baked in.

Automation Will Increase Outreach

With the deployment of drones in package delivery, companies will find it easier to reach their customers who lie in remote areas or hard to reach locations within a city. Big companies such as Alphabet, Google’s parent company, have already shown great interest in making package delivery drones using Project Wing. We’ve also seen autonomous medicine delivery using drones in some remote parts of the world. Overall, it’s clear that automation will change the way packages are delivered in the near future.

1154 Views