Self-Driving Vehicles Changing Logistics

The logistics industry is constantly evolving to keep up with new trends and current issues and in today’s world.  Technological advancement is often a solution for increasing efficiency and resolving problems. One of these technological advancements that can change logistics is the introduction of automated vehicles. Automated vehicles can present many benefits such as increased customer satisfaction, increased truck availability, increased efficiency and a lower cost of freight.

According to DHL, a global third-party logistics (3PL) company, the logistics field will be a leader in adopting automated vehicles.  These autonomous vehicles are not only limited to trucks that can make line haul deliveries or take care of the unpredictable last-mile delivery, but include driver-less forklifts that can increase the number of pallets and shipments that are already at the warehouse. This decreases the chances for delays while aiding in loading trucks sooner. With automated forklifts outputting maximum efficiency at the warehouse and autonomous trucks being able to make deliveries without having to adhere to DOT regulations that restrict the amount of time a driver can be on the road, the entire process becomes more streamlined. Ultimately, this will decrease delays, making sure deliveries are made quickly, and according to DHL’s report, the automated guided vehicles could lower cost of freight by 40% per kilometer.  The overall benefits will have the potential to lead to higher projected savings and higher customer satisfaction.

Self-driving trucks can tackle a growing problem in the transportation industry. The American Trucking Association (ATA) has reported that as of October 2015, the shortage of drivers stands at around 48,000. If this trend continues, that shortage could increase to 175,000 by 2024. The reasons for the slow but steady decrease in drivers on the road include an increased demand for freight transportation while many drivers are nearing retirement age. Also, according to the ATA, the criteria for new hires is higher than before and around 88%  of the applicants do not qualify, meaning the positions that are now open are not being filled quick enough. The introduction of autonomous trucks can assist with the high demand make up for the shortage in human drivers.

It may seem as though automated vehicles are a thing of the future, but companies like Apple and Google are expecting to ship out self-driving vehicles within the next three to four years. However, fully autonomous truck fleets still need years to be developed and hybrid trucks are in the work with automotive companies like Ford. Companies such as Ford are able to provide a truck that requires a driver, but allows the sophisticated technology to cruise without the driver doing a majority of the work, reducing strain on the driver. 

 

Contributor: Shelina Bhimani

Allyn International Services, Inc. (Allyn) is a privately-owned supply chain management, tax and customs consulting firm established in 1992. Services comprise of supply chain & logistics management, global trade compliance and US tax compliance. Allyn offers customized solutions to meet your global needs with offices in Fort Myers, Fla., Shanghai, PR China, and Prague, Czech Republic.