What comes to mind when considering the most elite operations in the audiovisual space? Innovation, reliability, scalability, speed, security, sustainability?
I would agree with all those attributes, among others. The leaders in the AV industry have mastered the ability to infuse those things into every facet of their organizations.
Why Disruption in AV Matters
However, the industry has been rocked recently with the increase in macroeconomic instability, higher magnitudes of the bullwhip effect (order volume fluctuation), and competing forces deciding what the future of globalization vs onshoring looks like.
I have long held the belief that the best response to disruption is…a countering disruption that you control.
That technology disruption is autonomous logistics powered by AI systems, and it should be a core part of every supply chain strategy.
How Will Autonomous Logistics Help the AV Industry?
To be clear, I am primarily referring to autonomous logistics such as driverless trucks and pilotless drones. As someone with “global supply chain” in their title, I understand the initial feeling that I’m biased ( and I am).
But is this just an isolated, interesting development within the supply chain world?
My stance is that no, autonomous logistics will have a major impact on how the AV industry operates and that we are a prime sector to reap the benefits of this technology.
We’ve spent years improving what happens inside the room. The next competitive frontier may be everything that happens before and after the install.
Go back to the measurables of the best AV companies: reliability, scalability, speed, security, sustainability. Autonomous logistics enhances an AV company’s ability to deliver to customers across each of those attributes.
How Can Autonomous Logistics Ensure Reliability?
Maintaining a customer’s space will always be a core part of a successful AV install. But parts fail after time and require services to maintain uptime.
Currently, technicians are expected to drive in/out/across congested downtown markets to obtain the equipment needed. By utilizing autonomous drones, critical equipment within specific payload limits could be flown into downtown areas within 30 minutes.
Expect an increase in the acceptable uptime for AV spaces since (no surprise) the biggest customer need is for that space to actually work.
Building Scalability In Supply Chain
Fortune 500 companies are increasingly centralizing their AV rollout efforts, both in terms of timing and product standards. It’s no longer unheard of to rapidly deploy a multitude of rooms across a country with little notice or little ability to flex timing.
It’s no secret in the supply chain industry that we are starting to experience a shortage of truck drivers due to federal crackdowns, and my stance is this shortage will only become worse as truck driver retirements increase over the next 5 years.
What good is a deployment schedule if no one can move the equipment to the client’s location? Autonomous trucking addresses that labor shortage (note: does not displace human drivers, there are already not enough) and ensure a continuous, scalable operation that can flex easily to a changing deployment schedule.
What is the Advantage of Autonomous Logistics Regarding Speed?
While both previous points tie into speed (try racing a technician through traffic in and out of San Francisco vs a drone flying over the Bay), there is also the advantage of mitigating supply chain disruption by reducing lead time across longer hauls.
Truck drivers have to abide by daily and weekly driving limits, an autonomous vehicle does not. This allows for a faster risk mitigation plan when components are stalled and emergency stock is needed on the other side of the country.
Lower lead time also opens the door for less quantity of safety stock, which is critical in an industry prone to equipment obsolescence.
How Can AV Companies Strengthen Security?
Cargo theft is on the rise across the world, and double digits in the U.S. Not only that, there is a heavier focus on electronics as the primary target of cargo theft. The majority of incidents occur at truck stops or when a truck is at rest.
Autonomous trucks have no need for rest stops or unnecessary idling, essentially eliminating one of the most common causes of cargo theft.
Reducing Cybersecurity Vulnerabilities
Changing gears, the AV industry has started to take cybersecurity into account as a major consideration.
In most situations, these devices sit on a network alongside a huge number of other devices.
Though cybersecurity and supply chain may not seem very connected, there are a rising number of incidents where trucks are being accessed when idle and the hardware is either tampered with or replaced, immediately representing a cybersecurity vulnerability before ever making it into the conference room.
This vulnerability is once again reduced by autonomous truck usage due to the elimination of rest stops.
What are the Sustainability Features of Autonomous Logistics?
Even without considering the eventual conversion to electric trucks, autonomous trucking involves very controlled braking and acceleration, allowing for a more efficient and sustainable driving operation.
Once this method of shipping scales up, these trucks are expected to be able to communicate with each other and form a “platoon” on highway travel where they follow closely behind each other to reduce wind drag (and increase fuel efficiency).
This is impossible to complete (safely) with human drivers due to human reaction time, but an autonomous truck with sensors and integrated communication networks would allow the following truck to brake at the same exact time the leading truck does.
For autonomous drones, the sustainability benefit is obvious by keeping a vehicle off the road and replacing with a short, electric-powered delivery via air.
What are the Safety Benefits of Autonomous Trucks and Drones?
Though not directly tied to the success of AV technology or installations, it would be irresponsible to not point out the safety benefits of autonomous trucking and drone usage.
The sensors used in these vehicles allow for anticipation of potential safety risks at a rate and range humans are not capable of.
Additionally, two of the biggest causes of trucking accidents are fatigue and distraction. It goes without saying both are fully mitigated by an advanced monitoring system navigating the vehicle instead of a human.
Closing Thoughts
It’s my personal stance that autonomous trucking will make up 50% of all highway miles traveled in the U.S. sometime in the next five to 10 years, with Europe not far behind that.
People sometimes see this as a cost-saving effort that will result in mass layoffs of truck drivers.
However, the next five to 10 years are expected to see increasing truck driver retirements and continued low entry rates for new truck driver replacements.
Said another way, this is not a human-replacement initiative. There will always be a need for human truck drivers, and there are already signs of an upcoming driver shortage.
Autonomous drones are currently being piloted in select markets around the world for specific use cases and has already been introduced within the AV industry.
For integration executives, pressure will start rising soon as it relates to tightening SLA’s and increased questions from customers on deployment capabilities.
It would be wise to begin asking current logistics partners about their autonomous capabilities.
Understanding How Autonomous Logistics Will Transform AV
Autonomous logistics across trucking and drones is not only going to change “how the AV industry ships equipment,” but will transform the AV industry’s uptime expectation in tech-enabled spaces, equipment standardization across geographically diverse locations, speed and flexibility of refreshes, cybersecurity capabilities, and evolving ESG requirements.
Embracing this supply chain technology is what unlocks the ability to meet those new expectations, and those who continue to ship AV equipment like it is 1991 will quickly realize they’re watching the industry elevate without them.
Jeremy Codiroli is vice president, global supply chain at AVI-SPL.
