Introduction of drones in the last-mile logistic process of medical product delivery

A feasibility assessment applied to the case study of Benu 't Slag

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Abstract

The term last-mile delivery refers to the final leg of a business-to-customer service, in which a product is shipped from a depot to a final destination point by means of land transportation, such as vans and small trucks. Although they provide a common and easy way to consign products, companies are striving for new transport technologies to reduce congestion problems, infrastructure limitations and air pollution. Recently, a valid alternative to road-bounded vehicles that is has gained attention is the adoption of drones in the delivery fleet. Drone applications range from military training, surveillance, path recognition and shipment of perishable products in emergency situations. Research on drones as delivery vehicles is still on its early stages, with some practical trials carried out by leader companies such as Google and Amazon. However, the application of drones in the pharmaceutical sector, and specifically for home deliveries of medical products, has not been investigated yet. To gain new insights into the feasibility of introducing drones in the delivery fleet composition, drone applications were studied for the delivery operations of the pharmacy BENU t Slag, in Rotterdam. Two scenario alternatives were tested using the Vehicle Routing Problem (VRP) formulation and a Large- scale Neighbourhood Search (LNS) algorithm was implemented to estimate the performance indicators associated with each scenario. Performances were then analysed through a comparative analysis. Conclusively, indicators were found to improve the delivery performance when drones are included in the fleet composition, with gains in environmental aspects, service time and delivery costs. Results provide important information for further research on the implications of using drones in the pharmaceutical sector. Moreover, results are also useful for BENU t Slag, providing a valid feasibility assessment of using drones for their home delivery operations.