For no particular reason this past couple of weeks we’ve been discussing:
- pallets and containers
- delivery drones
- 3D printing
- autonomous and electric cars
- economic aspects thereof
Now the fun part of this is that we can find useful things on the internet like Captain Capitalism’s thought provoking post on “Post Scarcity Economics” or Walter Russell Mead’s post on “Is Downton Abbey the Future of the US Economy?”.
While the economics are interesting, the actual history of things like containers can be riveting for boys and their father. (Susan decamps with a good book.) An article about the humble pallet gives the boys a fair bit of insight into everything from the global economy to the logistics of Ikea cup design.
One of the recurring themes which has emerged is how standardization improves efficiency. Containers have to be the same size, pallets – in an ideal world – would be the same size. A decision would be made about metric vs. imperial. Merchandise packaging would be optimized to max out pallet efficiency. There’s room for a bit of math and some basic geometry.
Once you start talking about pallets and containers you can also consider the “last mile” problem. How do you get the goods to the customer? Amazon uses the mail and UPS. Walmart wants you to actually go to their store. Nothing is more fun than thinking about how that last mile can be crossed without a trip to the mall or the UPS guy finding you are not at home.
In Australia there is a company set to deliver text books by helicopter drone. (And, yes, we did discuss this quaint idea of a paper “textbook” in a Kindle world.) No question that for things like pizza, prescriptions and drycleaning the flying delivery drone makes sense.
But, for my money, the autonomous vehicle is a better bet for the day to day business of getting stuff to people. (3D printing is still a distance away for every day use.) The excitement and hype in the autonomous car world has been about passengers – essentially moving people rather than things. But moving things is a huge business and it could get much bigger if an easy, inexpensive, means to get your groceries to your house could be devised.
We already have automated warehousing. (Worth looking at this video at Amazon’s Kiva systems site. However those robots merely pack the boxes with the customer’s order. Now what?
The last mile problem is going to get a lot of attention in the next few years. Autonomous delivery vehicles are one part of the solution; but the other part is actually delivering to the customer. Canadian start-up Buffer Box (recently bought by Google) has a fairly elegant partial solution. Your stuff is delivered to a Buffer Box kiosk which has electronic lockers you can open with a passcode from your phone. Nice for your online kite purchase, not too brilliant for the chicken you want to cook tonight.
There are lots of ways to attack the last mile problem. Each family gets a personal box and deliveries are made right to your box. Or, if price can be brought down, a person or family would have one or more “boxes on wheels” which would travel on some sort of schedule to the various places the family needs to have stuff picked up.
Part of the educational process here is that these are not questions which, at present, have answers. But they are not abstract issues: even a partial solution to the last mile problem is a billion dollar business. And it is a business which will occur very, very quickly. The horse was replaced by the internal combustion engine in less than 20 years.
Marrying a GPS/internet/Google Map aware computer to the rather well understood technology of the golf cart or electric scooter and you have an autonomous delivery vehicle prototype. With a secure storage capacity – think trunk of a car – you could probably build such things for $1000. They don’t have to go fast and, with good logistics design, they would not likely have to go far.
Now, think about what the introduction of such personal pick up and delivery ‘bots would change, especially in cities. Just one example: at the moment even if the Lady of the House is hyper aware of which items are on sale at which grocery stores this particular week, she is not particularly willing to make five stops and go through five checkout lines to save a total of, say, $10-20. But her pick up agent would be delighted to make those stops. (And, of course, now the supermarkets – if they are smart – are going to want to attract the pick-up agents so the scope for price matching and agent loyalty programs is huge.) On the other hand, think of the congestion these pick-up agents might cause. How to solve that problem. (Two hints – first, the number of car trips to get stuff would go down as would the number of manned delivery vehicles, second, it should be possible to build anti-congestion imperative right into the software which runs the pick up agents.
As I have pointed out to the boys, one interesting thing about robotic pick up agents is that they can operate continuously and therefore quite slowly. If your agent has to make four pick ups all within a one mile radius of your home over the course of, say, three hours it can accomplish that at a walking pace even allowing a ten minute stop at each pick up location. While I am not all that thrilled with the prospect of driverless semi-trailer trucks running at 60 miles an hour (which is an irrational fear but there it is), box toting pick-up agents sauntering on the sidewalk or in designated road lanes seems pretty manageable.