Exploring opportunities and challenges for aerial drones at the interface of warehouse and last-mile delivery operations
Mujtaba Hussain, Rico Merkert, Michiel C.J. BliemerPurpose
This paper investigates the technological, organizational and environmental factors that shape the adoption of aerial drone operations at the warehouse–last-mile delivery interface, addressing benefits and barriers of drone adoption, most suitable functional areas, stakeholder collaboration and support of a low-altitude airspace management (LAAM) system for successful integration.
Design/methodology/approach
Drawing on the technology–organization–environment (TOE) theoretical framework, we employ a qualitative research design, analyzing data collected during semi-structured interviews with 38 managers representing warehousing companies and drone operators around the world.
Findings
Successful drone integration in retail logistics depends not only on one firm's technology, organization and external context, but also on a collaborative effort across the supply chain. While drones offer clear benefits in logistics, full-scale adoption requires inter-organizational ecosystem coordination (and, depending on the governance structure, also collaboration) to overcome challenges such as infrastructural readiness and regulatory coordination.
Practical implications
Examining operations at the interface of warehouse operations and last-mile delivery yields management insights that can drive effective strategies for implementing drones. Building on the TOE framework, we conceptualize inter-organizational ecosystem coordination as a critical enabler of drone integration and innovation adoption in logistics. Based on our findings, we suggest that drone operators should integrate more deeply into logistics services rather than focusing solely on delivery, and warehouses should explore current uses for drone technology rather than simply considering future applications. We identify three governance models for integrating drones into logistics ecosystems: vertical integration, inter-organizational collaboration and partial adoption with intra-organizational collaboration.
Originality/value
We contribute to the evolving understanding of technology adoption and drone integration at the warehouse–last-mile delivery interface by examining managers' perspectives for the first time. Extending the application of TOE from the firm level to inter-organizational coordination better captures infrastructural enablers of innovation adoption and active collaboration between organizations in logistics operations.