Document Type

Journal Article

Publication Date

2022

Keywords

Drone delivery, replenishment operation, fashion, optimisation, regulations

Abstract

What should be considered in optimising the delivery routes for stock replenishment in a retail textile company? Traditional land-based truck delivery makes prompt returned or new products replenishments in small batches from one location to another impractical due to the high shipping costs incurred. Drones, which serve as digitized delivery equipment especially in western countries nowadays, realise last-mile and door-to-door deliveries. Breaking geographical barriers, drones raise operational efficiency and lower human- and equipment-related costs. Nonetheless, drone delivery regulations set legal boundaries. Added to this are the teething issues arisen in the drone deliveries across regulatory borders. As a consequence, retail replenishment performance and stock holding cost are rendered sub-optimal. In a fashion company’s setting, how do the small-batch deliveries using drones demonstrate their multifaceted advantages on the existing replenishment operation and the environment? A feasibility assessment able to show the logistics and environmental benefits of drone delivery with reference to the relevant regulations is yet to be in place to push boundaries.

Source Publication

International Association of Maritime Economists Conference 2022

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