Drones-based logistics and delivery are more efficient and effective than human-based logistics: Digital Supply Chain Assignment, SIT, Singapore

Drones-based logistics and delivery are more efficient and effective than human-based logistics when these drones are deployed for the last mile delivery. Drones are integrated into ESC coordination allowing the whole supply chain to effectively respond to the needs of consumers in a cost-saving way. The traditional logistics lack flexibility and responsiveness due to the need for cost-saving when its delivery significantly relies on trucks.

The deployment of drones not only leverages flexibility and responsiveness but also greatly saves costs. For instance, using drones results in cost savings in comparison with the traditional multi-tiered land transport system while delivering vaccines. Besides the inner efficiency of drones, logistics and delivery empowered by drones do not need to be concerned about the impact of traffic congestion, because drones are operated in designed airspace.

In major cities, the occurrence of traffic congestion commonly costs the logistics operators and firms due to the poor performance of logistics effectiveness and customer satisfaction (Slabinac, 2015). Furthermore, operating drones do not require a firm to establish a huge size warehouse and operating hubs, and this facilitates this firm to reduce relevant operating costs, such as the growing rental of warehouses and hubs. The reduction of relevant costs results from the integration of drones in ESC coordination while the whole supply chain efficiency and responsiveness are enhanced by drones.