Saturday, September 5, 2020

Future Logistics 1: Autonomous Trucks- Impact and Benefits

Hi, I’m Priyanka Sunil- A final year MBA student from Amrita School Of Business majoring in Operations and Marketing. Welcome to my progressive learning space for Logistics and Supply Chain Management.

 

Ok, when this truck photo bombed my shot, I was in a moving car attempting to catch a stunning sunset from the gulf desert. And it found its way from my dump folder to this blog today and loves all the publicity

Digitization and other advancements in technology are exposing the vulnerabilities in every industry. Now, the logistics industry is feeling the heat. Platooning with autonomous vehicles will be a centerpiece of tomorrow’s sustainable transport system. Step-by-step growth is already underway.

The autonomous trucks (ATs), will change the cost structure and utilization of trucking—and with that, the cost of consumer goods.  The majority of most countries' consumable goods are trucked to market. Autonomous trucks would decline costs by a huge amount. The big question is how these savings will be distributed.

At any step of the supply chain, automation extends the capacity of logistics organizations to stretch with peak demand, take on heavy freight, and pick and load individual goods -all qualities that help e-commerce. The trucking industry needs more drivers to satisfy the growing demand, especially from retailers that are under pressure to produce as quickly as Amazon to consumers. The lifestyle of a trucker -which takes long hours on the track, heavy lifting, and long hauls weeks away from home- hasn't appealed to younger staff. The trucking industry has long faced a lack of drivers, due in part to high risk, low pay , and long hours. Self-driving and semi-autonomous vehicles, including those at Embark, TuSimple, and Tesla in progress, may help fill this void. The advent of automated vehicles could mitigate the problem — but it may also reduce employment for aging men’s demographics that lack college degrees and might find it difficult to pursue new work.

Many automakers are now part of the game, making strong investments through in-house growth, alliances, and acquisitions through self-driving technology. Companies of technology – big and small – have already embraced different approaches to self-driving technologies aimed at reaching varying degrees of automation. 

PC: Mckinsey Company

Assessing the Impact and Benefits

·     AT can become a railroad operator's rival or associate. That can move enormous freight volumes from rail to road.Warehouses would likely need to invest in improvements in facilities, such as AT-compatible docks and exits, to ensure smooth connections.Related improvements can be made in ports too.

 

VC: Scania group

·Self-driving in confined areas  will not only save cost by eliminating drivers but also  acts as a safety measure as mines are full of hazards.

· Platooning helps fuel economy to improve as trucks that follow closely together set up air flows and help both trucks push forward. It can reduce air drag, fuel efficiency, and carbon emissions.

· If we have fully autonomous trucks- the driver shortage issue which has exacerbated the industry over the years will be drastically reduced. Moreover, since we don't need to take into account the time that drivers are taking breaks, getting meals, or going home, autonomous trucks can run 24/7.

As these trucks are connected to integrated warehouses and managed by intelligent Transportation Management System and Warehouse Management System, the future of Logistics Management will open up even more possibilities.


Reference

https://www.youtube.com/watch?v=lpuwG4A56r0

https://www.rosenohrlaw.com/blog/benefits-and-drawbacks-self-driving-trucks/

https://www.mckinsey.com/industries/travel-transport-and-logistics/our-insights/distraction-or-disruption-autonomous-trucks-gain-ground-in-us-logistics



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