Traverse Aero is developing the Orca, an autonomous hybrid-electric eVTOL designed to extend the use of pallets through the entire B2B supply chain. No repackaging required.
E-commerce continues to change how we buy; social media is changing how we market, and new FinTech is changing how we pay. Companies are also now looking to improve the return process. Two common themes that run through all these changes are speed and convenience. Waiting 4-6 weeks for shipping indicates a significant breakdown in the supply chain.
Consumers are demanding more from the market, and social media gives them an avenue for their grievances (and praise) to be heard.
These demands continue to pressure retailers to improve and meet ever-increasing expectations. The market has responded with a flurry of innovations for expediting delivery to the consumer, known as the Last Mile for the B2C industry. Autonomous drones, cars, and even delivery bots are grabbing headline promises for quicker and cheaper delivery options than traditional delivery vehicles. They have also captured considerable wallet share from investors, with estimates growing to $4.4[1] billion in the last decade, which doesn’t include Amazon’s $2B in its efforts. All are chasing what Straits Research[2] estimates will be an $85B industry in 2030.
What is often overlooked in the B2C race for the last mile is the capability that services the B2B mid-mile. B2B logistics was $17.9 trillion in 2021, over five times the size of B2C. Businesses understand the value of expedited logistics and can quantify the value it generates (saving lives, saving downtime, reducing spoilage, and meeting quotas and contractual obligations).
So, how do we differentiate between B2B and B2C logistics?
The critical difference is in quantity and purpose. Most B2C logistics are around finished products ready for home delivery: clothes, electronics, medicines, and packages typically under a few pounds. B2B last mile is about supplies, equipment, and raw materials. Shipments usually range from tens to hundreds or even thousands of pounds or greater, which is the realm of LTL (less than truck luck) and courier logistics.
B2B logistics have a time-sensitive nature. Reducing timelines in the supply chain means increased productivity. And while most companies appreciate speedy deliveries, there are many use cases where saving hours or even minutes has a material impact.
Medical Supplies – This can include everything from medicine to first aid kits, medical equipment, and even organs for transplant. Expediting these deliveries can be critical. The loss of even a few minutes can mean delayed treatments, adverse outcomes for patients, and loss in the viability of the shipment.
Industrial Components and Spare Parts – Downtime of an assembly line can cost hundreds of thousands to millions of dollars an hour. Some spares can be kept on-site, while most are shipped in. Shaving off time for these deliveries can dramatically reduce the losses associated with downtime.
Perishables – Every year, tons of perishable items spoil during transit between their origin and retail locations. This includes food, dairy, and fresh flowers. As the supply lines for these materials continue to grow, eliminating delays in shipping reduces the spoilage rate, improves customer satisfaction, and reduces insurance costs.
Remote Locations – Keeping remote locations provisioned is essential to keeping those locations functioning. Off-shore drilling rigs, outposts, small islands, and other remote areas often don’t have access to traditional logistics options. Helicopters are an expensive option, limited by weather conditions and often restricted to daylight operations.
Leveraging Autonomous Cargo Drones
Several companies are now developing autonomous cargo drones. They are a logical choice for a variety of reasons:
- More flexible operations and scheduling
- Faster transit times by bypassing congested roads and difficult terrain
- Lower investment and operating costs
Drones are being built with nose-loading trays, oblong cargo holds, and attached cargo boxes under the fuselage. Some air taxi companies realize that passenger travel is still years out and are repurposing their passenger craft for cargo.
However, there is one aspect that most of them have missed: the cargo form factor.
The world has standardized on pallets. Not designing around this form factor diminishes desired speed and efficiency gains because shipments must be unpacked and repacked to fit. These approaches can also result in more significant variability in the center of gravity of the aircraft, which can create safety challenges for the control systems.
The Traverse Aero Orca – Extending Palletized Logistics
Traverse Aero is developing the Orca, an autonomous hybrid-electric eVTOL designed to extend the use of pallets through the entire B2B supply chain. No repackaging required.
The cargo bay can fit both European and US pallets. Palletized cargo can be loaded and unloaded in under a minute from either side using dollies, lifts, or forklifts, decreasing the aircraft’s non-revenue-generating idle time on the ground and maximizing its utility in the air.
The Orca uses currently available technology and readily accessible fuel sources to reduce costs and improve reliability and operational efficiency. The 250 kg carrying capacity and 1000 km range opens up a wide range of use cases, including time-sensitive deliveries even to remote locations.
The onboard sensors, flight control systems, and AI technologies are ideal for autonomous operations in adverse weather and night conditions.
The Orcas provide autonomous, rapid transport of time-critical payloads for immediate use or prepositioning while seamlessly integrating into existing logistic operations and delivery systems.
The Orca is realizing the dream of autonomous cargo drones for B2B logistics.
To learn more, visit the company’s website at traverseaero.com
[1] https://droneii.com/product/drone-investments-report-2020
[2] https://straitsresearch.com/report/autonomous-last-mile-delivery-market/segmentation