Question

MBA, spring 2020

Assignment 7

Topic: Logistic Management:

Your task is simple and exploratory: come up with a max. 1000 words write up that covers following:

Autonomous Truck & Drones: how play important roles in logistic management and that are impacting a particular facet of Logistics Management. Write a maximum 1000 words analysis.

Answer 1

Logistics management is the practice of managing movement of goods. Transportation is a part of supply chains, e-commerce services etc. Traditionally material movement is being carried out by land, sea and air transportation methods. All these methods are efficient to the point of our knowledge and we have optimized to suit our needs. However, emergence of advanced technologies has added more options to our modes of transportation. Technology is reshaping the way we live, and logistics is also no different.

The introduction of autonomous driving technology and drones have changed our idea about transportation. Conventional land transport may cover long routes and it is very tiring for drivers who make long commutes for transporting goods. There are chances for accidents, risks and liabilities originating from such long-distance transport as well. These all can be eliminated as autonomous vehicles become more common. Efficiently of transportation will increase greatly. Another advancement in the transportation field that has happened recently is the use of drones for delivering goods. Drones has found its applications in recreation, delivery, photography, rescue services etc. Drones can attain speeds of up to 100 miles per hour and this will aid delivery of goods in as low as one hour to customers. Many countries are making laws regarding flying drones and many of them are in favor of drone use.

There are drawbacks for these technologies as well. Human job loses may happen if autonomous driving become more advanced. Currently, there are human-auto systems which are not fully automated. Driver will be there in the cabin, but an AI will drive the vehicle and the driver may decide if a changeover is necessary. With the emergence of advanced AI systems, jobs of several drivers may be at stake. There are issues related to law which also companies will be adopting such technologies may be mindful about.

However, we cannot avoid implementing such technologies in the future as the world and technology is evolving. We may hope that such technologies will help reduce time and cost in delivery and transportation of goods. It will also help save human lives from accidents happening during transportation. Transportation costs are a major cost companies engaging in businesses incur. By adopting automation technologies, we may reduce that cost and the money saved may be used to further other activities. Automation will result in a more optimized operation of businesses. Transportation and material movement can be performed 24 x 7 and it will help optimize supply chains better.

It is sure that adopting technology will push forward the system we have built over time and will reshape it for the better.