Written Assignment – Unit 7 Driverless Trucks and Distribution Channels Keith Tewell University of the People Abstract In this essay, I will discuss an industry that has had substantial changes in its channels of distribution. I will then identify the fundamental reasons for this change. Lastly, I will select one of the reasons and explain why it has had the most significant impact on the change to the channels of distribution for the selected industry. Keywords: driverless, trucking, technology, competition, goods Driverless Trucks and Distribution The trucking industry is changing in a very big way. Driverless trucks are here and transforming the way products are transported over land from manufacturer …show more content…
plants to distribution centers. In fact, Uber (yes, the transportation network company) has a fleet of self-driving trucks that have begun hauling commercial loads in the state of Arizona. In October 2016, a unit of Uber called Otto successfully produced a self-driving truck that hauled a load of Budweiser beer without incident on a 120-mile trek through Colorado (Schultz, 2017). Uber's driverless trucks will operate as part of Uber Freight, a freight-hauling app and network that Uber launched late 2017 (Lee, 2018). The trucks currently are not totally driverless yet (they still have human safety drivers behind the wheel), but it represents the start of big changes for the channels of distribution in the trucking industry. The automated trucks have been rolled out in three phases. Phase one was the development, testing, and installation of technologies for the actual trucks, usually to enhance safety (Cassidy, 2016). In the current phase two, “partial drive substitution” is implemented where trucks will travel autonomously on highways with drivers freed to perform other tasks. The third phase is complete self-driving autonomous trucks, which appears to be coming in the near future. The general concept is to have the driverless trucks handle the long-haul portion of the shipping journey and have human drivers handle the short legs at the beginning and end of each route. Driverless technology promises the same benefits to industrial and shipping applications as it does in personal vehicles; autonomous trucks offer convenience, improved safety, and increased efficiency for delivering goods (Rheude, 2016). By reducing distribution cost and time, the transition to autonomous long haul trucks may well disrupt industrial land use patterns, but at the same time, can improve consumers’ experience obtaining goods from across the country to across town ("Beyond Driverless Cars: Autonomous Trucks and Industrial Distribution - ULI San Francisco", n.d.). In the final analysis, driverless trucks will be able to run a lot longer and handle freight over longer distances than they have in the past, which means faster fulfillment cycles for consumers at their favorite distribution outlet. Technology and competition are primary reasons that driverless trucks are now part of an improved strategy to enhance the trucking industry’s distribution channel.
Without technology, this futuristic vision would not become the reality that it is today. And, the trucking industry is competitive and customers have numerous operators to choose from, including privately held carriers and companies outside the industry, such as air-transporters (Publishing, n.d.). The emergence of driverless trucks in the fleets of forward thinking trucking companies will provide the edge to stand out amongst the competition in the important eyes of the …show more content…
customer. When the future of driverless or autonomous trucks is discussed, the focus tends to fall on the technology, and it should. Technology is the most significant factor causing the changes in the channels of distribution in the trucking industry. Not only is the technology growth associated with driverless trucks helping to improve the buying experience of products for customers, its having a positive impact already on peripheral elements of the shipping business including warehousing, robotics, and simple convenience. In conclusion, driverless trucks are here and here to stay. The present is exciting and the future should prove even more amazing with autonomous trucks carrying goods to all regions of a marketplace with efficiency, reliability and safety. There will be adjustments for professional drivers. It is said the professional truck drivers will not be replaced, but instead, will have more job opportunities than before. Consumers will witness new distribution outlets where there were none before and have better customer buying experience. Lastly, the driverless truck will usher a business innovation that is upgrading an industry’s distribution channel for everyone to enjoy and benefit from. References Beyond Driverless Cars: Autonomous Trucks and Industrial Distribution - ULI San Francisco.
Retrieved from https://sf.uli.org/event/beyond-driverless-cars-autonomous-trucks-industrial-distribution/ Cassidy, W. (2016). Automated trucks, warehouses seen transforming distribution. Retrieved from https://www.joc.com/trucking-logistics/trucking-equipment/automated-trucks-warehouses-seen-transforming-distribution_20160914.html Lee, T. (2018). Uber’s self-driving trucks have started hauling freight. Retrieved from https://arstechnica.com/tech-policy/2018/03/ubers-self-driving-trucks-have-started-hauling-freight/ Rheude, J. (2016). The Future of Distribution - How Products Will Get to Markets. Retrieved from https://www.webretailer.com/lean-commerce/future-distribution/ Schulz, J. (2017). Truckers Prepare For Era of Driverless Trucks - Supply Chain 24/7. Retrieved from http://www.supplychain247.com/article/truckers_prepare_for_era_of_driverless_trucks Publishing, V. Industry Overview: Trucking. Retrieved from
http://www.valueline.com/Stocks/Industries/Industry_Overview__Trucking.aspx#.Ww8D4xR6rHg
When our country was at war, the military identified the need for trucks. Trucks were very important because it was difficult to find away to transport all the supplies, troops, and food. After WW1, this brought an increase in good roads plus an expanding economy. This helped grow the trucking industry. The 1920’s were the years of innovation. The balloon tires were introduced along with the rail road’s that were established “piggy-back” service. The first mechanically refrigerated van was introduced. In 1925, there were 500,000 miles of hard surface roads in the U.S. In 1926, a fully loaded 2 ton truck was driven from New York to San Francisco in five days.
...dustrial Distribution allows me to pursue my interests in both Business and Engineering, and therefore I chose that major. Also, it will help me to build my personal characteristics that will make me successful in this major. As my education continues, I look forward to learning how manufacturers and distributors maintain good communication and relations, so that the products can be distributed efficiently and avoid problems. If there are problems, I would also like to comprehend ways to solve those problems. In the future, I hope to work for a company such as Amazon, Dell, or Boeing in the field of logistics. These companies depend on logistics in planning and conducting their operations. Since logistics and relations between manufacturer and distributor are critical to the everyday operations of businesses, understanding this will help me in my future endeavors.
Trucking has been a relevant career in the United States ever since the 19th century during WWI the army used trucks to transport goods to the soldiers. People in the towns and cities saw they were good transporter so as roads were built and paved more people start owning them. The Interstate Highway System was a big movement for truckers now they could haul there companies goods farther to other cities. The Motor Carrier Act of 1980 helped drivers who went on strike because of the price of gas to run and operate the trucks. Alex Debogorski was a long haul trucker introduced to trucking when he was looking to earn more money to do for his family. As he drove he realized how good the open road looks as the road meet the sky. Now he is on some of CMT’s episodes of Ice Road Truckers, he said If it wasn’t for his parents and wife he wouldn’t have made it. He also open the door for most of the truckers with criminal records. He helped pas the law that states if your drving record is good you can go in for the long haul.
...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
The trucking industry over the years have changed the type of services and the quality that it has provides to its customers. In today’s industry the focus is on efficiency with the overall beneficiary being the American consumer. Majority of today’s freight is being transported by truck during sometime in the distribution chain. Some of factors the trucking industry is facing today include hours and earnings and safety issues.
There will be a day when driving will not require a license. Children will be traveling on their own, teens will be texting while driving, adults will be doing their jobs while driving, and the elderly who are visually or physically impaired will be able to transport themselves (Symonds). This will be made possible through new technological car advancements that will enable a car to be driverless. With technology increasing exponentially, and our everyday lives getting busier and busier, we need a solution. Weeks of productivity are lost each year by Americans (Pollette). Driverless cars will cause this issue to vanish by reducing delays and smoothing traffic flow (Winston). Most technology will have flaws, and this is also true for driverless cars’ technology. Improvements are being made to enhance the car (Pollette), but accidents will still take place. Despite the flaws, driverless cars will make trips shorter, and when trips are long, we will be able to multitask.
Companies like Google, Tesla and Nissan, among others, have announced over the past few years that their companies are trying to develop self-driving or autonomous cars [Ref. 1 and 2]. Self-driving cars can provide many benefits to the average consumer. Studies have shown that because computers can react and process information many times faster than a human being, crashes on streets and roads can be decreased with quick and consistent evasion maneuvers by the autonomous car. They can also help maximize fuel economy by calculating the most direct and fastest routes. When the driving of an autonomous car demonstrates that the computer can safely and reliably transport the passengers to their destination, this frees up the passengers to do other things that they would not normally be able to do if they were driving the car manually. For this reason, self-driving cars can help maximize productivity of their passengers.
How would you feel if you got to sit and relax in your car while you were going somewhere but not actually having to drive? Well thanks to the advanced technology driverless cars are already in the making. People may think it is a good idea for the United States to move toward a society with driverless cars but it is not because the cars would have safety issues, the cars wouldn’t be able to go very far without help from humans and the car will be expensive.
Picture this, you are sitting around a table in comfortable leather chairs with a few friends drinking cocktails and playing cards. No, you are not at a friends house on a Friday night but you are riding in your driverless car heading to the moutains for a weekend away. This is the future of the automobile in the 21st century and this technology driven by artificial intelleigence is just around the corner.
For a few years now, Google and Tesla have been on the front lines in the fight towards driverless cars. Not only that, but they have made quite a bit of progress, too. The cars now have the capability to follow the rules of the road, predict what moves other drivers on the road might make, and even read road signs and traffic signals. However, the implementation of this new technology has not always been met with a positive outlook.
People around the world are constantly moving from place to place. Whether that place is work, a restaurant, or home, people require a means of transportation in order to arrive at a desired destination safely and efficiently. One of the most used means of transportation today are cars. Cars play an important role in the world’s economy by transporting goods and people. Automobiles have come a long way since Ford’s first Model T, and the auto industry plans to further enhance the technology and capabilities of the cars that drive on our roads. New technological advancements like rear-view camera, self parking, and auto braking have greatly improved the overall safety of cars today. However, one of the most talked about ideas are autonomous
Technology is evolving faster than ever these days, however there is one technology that could revolutionize the transportation industry. This technology is called autonomous cars, also known as self-driving cars. Autonomous cars can be defined as a vehicle that is capable of sensing its environment, and navigating without human input. Using different techniques such as GPS and radar, autonomous cars can detect surroundings, thus removing the human element in driving. This would have a positive effect in more ways than we could ever imagine. Research suggests that self-driving cars will become more abundant in the future because they will be more cost-effective, enhance safety, and decrease traffic congestion.
Nowadays as the technologies of car are developing faster and faster, this scenario involving of autonomous cars may not be as far as we think. On June 29, 2011 Nevada was a first state of the United States to pass a law permitting the autonomous car to drive in Nevada, and the first license of an autonomous car was issued by the Nevada Department of Moto Vehicles in May 2012. So far the Google Driverless Cars, the most popular autonomous cars in the United States, have been tested by Google Inc. over 300,000 miles on the city streets, mountain roads, and busy highways in many different weather conditions. To the topic of autonomous cars, most of us believe that autonomous cars will bring us huge benefits. However, there is a question of whether it is a good idea to promote autonomous cars in our daily lives. Whereas some argue that promoting autonomous car might cause problems such as the loss of millions ...
Over the next few decades, the number of automobiles grew exponentially. But in essence there has been no paradigm shift in personal transportation since Henry Ford’s model T. Today’s cars are better versions of what Ford had built almost a century ago. The future, however, looks more interesting. Rapid industrialization and unchecked growth in population has brought to the front a myriad of problems that were unheard of
Companies like Uber have developed a self-driving truck and have put it to test on or about October 17, 2016. This truck transported Budweiser beer from Fort Collins to Colorado Springs in Colorado. It’s trip covered 120 miles of distance and was traveling at a speed of 55 mph. The trucking industry has a workforce that is predominantly men around age 49 and only 5.8% of female. According to the American Trucking Association, there have been evident shortages since the year 2005 with roughly a shortage of 20,000 drivers.In 2016, there is a shortage of 50,000 and it is expected to be 175,000 drivers by 2024. The hiring criteria include the driving history of the applicant, a commercial trucking driver license usually earned after training and even their experience with other carriers such as 2 to 3 years. A CDL program takes about a month to earn and there are schools that are now directly connecting with job afterward. Also, there are programs that pay about $500 a week while you train with them.