DC Velocity - June 2019

T ra ns p ort at i o n R ep or t

P AR C E L EX P R E S S

30 DC VELOCITY JUNE 2019 www.dcvelocity.com array of sensors, cameras, and advanced software to help it navigate the multitude of terrains and obstacles encountered in an urban environment. The FedEx bot is designed to travel on sidewalks and along roadsides, safely delivering smaller shipments to customers’ homes and businesses.

FedEx and Deka have engaged with national retailers such as AutoZone, Pizza Hut, Target, Lowe’s, Walgreens, and Walmart for feedback and to identify ways to integrate the technology into operational processes and the customer delivery experience. On average, more than 60 percent of merchants’ customers live within three miles of a store location, demonstrating the opportunity for on-demand, hyperlocal, same-day delivery.

“Last-mile delivery is one of the priciest and most com-
plex parts of the delivery process,” said the FedEx spokes-
man, who added, “A goal of this technology is to design it in
such a way as to reduce those costs.” Once FedEx completes
prototype testing and moves into commercial operation,
retailers will be able to accept orders from nearby cus-
tomers and deliver them by bot directly to their homes or
businesses.

REDEFINING DELIVERY

As the parcel shipping market continues to evolve, the
choices for shippers are becoming more complex. And
increasingly, there is a sense
of urgency, notes Courtney
Rogerson, senior principal
analyst, supply chain logistics,
at research firm Gartner Inc.
“Shippers and carriers are
becoming smarter [and more
sophisticated]. You have to
know what you are trying to
accomplish in the network and
align [it] to the best fit of carri-
er for that goal,” she says. “It’s
about knowing your network
strengths, gaps, and where different types of carriers can
provide value.”
Startup urban delivery carriers do have a place in the mix
and are impacting the market to some degree, Rogerson
says. “The thing is that with the Big Two, they have a hold
on the market because of volume discounts. If you pull

the perfect fit

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