International Journal of Logistics Research and

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Drones for supply chain management and

logistics: a review and research agenda

Abderahman Rejeb, Karim Rejeb, Steven J. Simske & Horst Treiblmaier

To cite this article: Abderahman Rejeb, Karim Rejeb, Steven J. Simske & Horst
Treiblmaier (2021): Drones for supply chain management and logistics: a review and
research agenda, International Journal of Logistics Research and Applications, DOI:
10.1080/13675567.2021.1981273

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Published online: 24 Sep 2021.

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INTERNATIONAL JOURNAL OF LOGISTICS: RESEARCH AND APPLICATIONS
https://doi.org/10.1080/13675567.2021.1981273

Drones for supply chain management and logistics: a review and

research agenda
Abderahman Rejeba, Karim Rejebb, Steven J. Simskec and Horst Treiblmaier d

a
Department of Logistics and Forwarding, Doctoral School of Regional Sciences and Business Administration,
Széchenyi István University, Győr, Hungary; bDepartment of Software Engineering, Higher Institute of Computer
Science, Ariana, Tunisia; cSystems Engineering, Colorado State University, Fort Collins, CO, USA; dDepartment of
International Management, Modul University Vienna, Vienna, Austria

ABSTRACT ARTICLE HISTORY

This study examines the potentials and challenges of drones, or Received 16 August 2020
unmanned autonomous vehicles (UAVs), in supply chain management Accepted 12 September
(SCM) and logistics. A systematic literature review was performed to 2021
capture the dynamics surrounding drones and to provide a timely and
KEYWORDS
comprehensive overview of what has been studied so far and what Drones; unmanned
needs to be investigated in the future. 55 publications were selected autonomous vehicles; supply
and thoroughly analysed. The findings of this study illustrate that the chain management; logistics;
potential strengths of applying drones in SCM and logistics are: (1) literature review; research
support of humanitarian logistics, (2) reduced delivery time, (3) reduced agenda
cost, (4) improved flexibility, and (5) increased sustainability. In addition,
the challenges posed by drones in SCM and logistics are grouped into
technical, organisational, safety-related, and regulatory issues. This
study also investigates real-life drone deployments in SCM and logistics
and sets forth an agenda for future research.

1. Introduction
The current trends in automation, digitalisation, and data exchange (Rao and Prasad 2018) affect
every corner of the organisation and the supply chain. New technologies, concepts, and processes
such as additive manufacturing, the internet of things (IoT), blockchain, augmented reality, phys-
ical internet, robotics, and artificial intelligence have impacted the ways in which products are built,
tested, and distributed (Olsen and Tomlin 2019; Perussi, Gressler, and Seleme 2019; Rejeb, Keogh,
and Treiblmaier 2019; Tang and Veelenturf 2019; Rejeb, Keogh, et al. 2020; Treiblmaier et al. 2020).
Additionally, drones have attracted significant attention to enhance value in operations (Es Yurek
and Ozmutlu 2018).
Drones are also commonly known as unmanned aerial vehicles (UAVs), or pilotless aircraft sys-
tems, and are used in diverse applications like industrial monitoring, photography, military surveil-
lance operations (Samad, Bay, and Godbole 2007; Xia, Batta, and Nagi 2017), disaster rescue and aid
operations (Sandvik and Lohne 2014; Marin 2016), parcel delivery (Murray and Chu 2015), and
agriculture (Puri, Nayyar, and Raja 2017). The technical aspects of drones have improved so quickly
that they are now a suitable option not only for delivery operations (Murray and Chu 2015; Dorling
et al. 2017; Moshref-Javadi, Lee, and Winkenbach 2020), but even for passenger use and transpor-
tation (Shavarani, Golabi, and Izbirak 2019). A recent report published by MarketsandMarkets esti-
mates that the drone logistics and transportation market will amount to USD 11.20 Billion in 2022
and is expected to reach USD 29.06 Billion by 2027, representing a compound annual growth rate

CONTACT Horst Treiblmaier horst.treiblmaier@modul.ac.at

© 2021 Informa UK Limited, trading as Taylor & Francis Group
2 A. REJEB ET AL.

(CAGR) of 21.01% during the forecast period (MarketsandMarkets 2020). Another report by DRO-
NEII projects that the global drone market will increase from USD 14 Billion in 2018 to over USD
43 Billion in 2024 at a CAGR of 20.5% (DRONEII 2019). Industry giants such as Amazon, DHL,
Federal Express, Google, and Facebook have recently been engaged in exploring the potentials of
drone technologies in logistics, package delivery, and relaying of internet connection (Lee and
Choi 2016; Wang, Poikonen, and Golden 2017). In the business models of these companies, drones
are aimed at ensuring last-mile delivery and delivering parcels directly from a depot to the final cus-
tomers (Es Yurek and Ozmutlu 2018).
For companies, drones constitute an innovative method to increase logistics responsiveness and
efficiency (Sah, Gupta, and Bani-Hani 2020). Because of their speed, flying capabilities, and auton-
omous operations, the capability of drones as delivery vehicles for logistics and relief distribution
has been previously scrutinised (Shavarani 2019). Apart from shortening delivery times, drones can
increase environmental sustainability since they are powered by electricity (Hwang, Kim, and Kim
2019). The high mobility of drones can significantly optimise many logistics tasks (e.g. warehous-
ing, inventory management, transportation, and route planning) and minimise the overall costs of
the supply chain. Although the general benefits of drones in SCM and logistics are recognised in the
literature, the overall efficiency of UAV-supported delivery systems depends on several factors,
including the number of drones being deployed, their loading capacity, endurance (i.e. the distance
that a drone can travel without the need to refuel or recharge (Shavarani et al. 2018)), and the routes
of delivery missions (Shavarani, Golabi, and Izbirak 2019). Unlike trucks, the current battery
capacity of delivery-by-drone systems is still a major technical issue that hampers the mapping
and surveying function of drones (Sah, Gupta, and Bani-Hani 2020). The implementation of drones
in SCM and logistics also brings about other challenges associated with community perception and
acceptance, lack of regulatory framework, and the need for skilled labour to operate and maintain
these logistics systems (Clarke 2014; Tatham et al. 2017; Perussi, Gressler, and Seleme 2019).
While research on the application of drones for SCM and logistics has gained in popularity over
the last couple of years, there is still a lack of studies that review and synthesise the potentials and
challenges of drones in this field. The current study bridges this knowledge gap and provides the
SCM and logistics community with an overview and a better understanding of this technology.
The review of existing work is an important first step in providing a strategic view of the latest
developments in drone technologies and accelerating their uptake in SCM and logistics activities.
Since modern supply chains and logistics have become more complex, dynamic, and technology-
driven (Alvarado and Kotzab 2001; Holmström and Partanen 2014; Huber, Klauenberg, and Thaller
2015; Kamble, Gunasekaran, and Arha 2018; Treiblmaier 2019; Rejeb, Simske, et al. 2020), there is a
need for flexible logistics systems that can respond to customer requirements more effectively and
efficiently. In this increasingly complex environment, the added complexity of incorporating drones
is not as daunting as it might have been 10, or even 5, years ago.
In this review, we seek answers for the following two research questions (RQs):
(RQ1) What are the potentials and challenges of deploying drones in SCM and logistics?

(RQ2) What are the current research gaps in the extant literature?

To answer these RQs, we performed a systematic literature review (SLR) focused on drones and
SCM and logistics. An SLR is an appropriate method to map, assess, and summarise a non-coherent
body of literature to advance conceptual development within a field (Tranfield, Denyer, and Smart
2003). By conducting this study, we aim to offer a balanced overview of what drones are capable of
doing for SCM and logistics along with the challenges encountered by organisations adopting this
technology. We enrich the academic debate and call for increased attention to the opportunities and
challenges raised by the shift toward drone-based supply chains and logistics. The remainder of this
paper is structured as follows: Section 2 presents the SLR methodology; the descriptive results of the
review are detailed in Section 3; Section 4 addresses RQ1 and outlines the potentials and challenges
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 3

of drones as well as their deployment in real life; and Section 5 addresses RQ2, outlines a compre-
hensive research agenda, discusses the study’s implications, and provides an outlook on future
research.

2. Research method
This study employs an SLR methodology to assess the academic literature pertaining to the poten-
tials and challenges of drones in SCM and logistics. An SLR is a widely used technique in many
SCM and logistics related studies (Colicchia and Strozzi 2012; Kamble, Gunasekaran, and Gawan-
kar 2018; Rejeb et al. 2021) because it enables researchers to derive important findings from the
extant literature. This review followed the guidelines proposed by Tranfield, Denyer, and Smart
(2003) in order to ensure that it is systematic, thorough, transparent, and replicable. The steps
suggested by Tranfield, Denyer, and Smart (2003) involve (1) the formulation of review questions,
(2) the search for materials, (3) the evaluation and selection of the materials, (4) the analysis and
synthesis of findings, and (5) the reporting of review outcomes.
Firstly, the formulation of the research question is guided by the research objectives men-
tioned earlier. Secondly, the procedure for searching for related materials aims to locate and
identify all pertinent studies that align with the review goals. To extract the relevant materials,
the authors consulted the Scopus database in July 2020. Unlike other academic databases (e.g.
ISI Web of Science), Scopus is considered the most effective (Tober 2011) and holistic cross-dis-
ciplinary search engine with the broadest available coverage in diverse fields such as science,
technology, medicine, social sciences, and art and humanities (Jacsó 2011). Scopus is also
well-recognised for its accuracy, comprehensiveness, and trustworthiness, as it consists mostly
of high-quality and high-impact research predominately published in English-speaking journals
(Chadegani et al. 2013). It is estimated that the database covers more than 22,800 titles from
over 5,000 publishers, with the majority of the documents published in peer-reviewed journals
(Keenan and Jankowski 2019). Thirdly, to compile the pertinent papers for review, the search
was carried out using the following combination of keywords in the title, abstract, and keywords
fields: (drone* OR ‘unmanned aerial vehicle*’ OR uav* OR ‘unmanned aircraft system*’ OR uas*
OR ‘remotely piloted aircraft*’) AND (‘supply chain*’ OR logistic*). Different terms and acro-
nyms were used for the term ‘drone’ in order to account for the varying definitions of the con-
cept in the existing literature. To ensure the academic nature of the retrieved literature (Ramos-
Rodríguez and Ruíz-Navarro 2004), only journal articles were considered for selection. The
search procedure therefore filtered out publications in the form of books, book chapters, con-
ference papers, and editorials. Research on drones spans multiple disciplines and is developed
and advanced mainly by scientists and engineers with an interest in control, programming,
and modelling (Jouhet et al. 2020). In order to filter out non-relevant publications for this
study, the subject area of the search was limited to the field of business and management. Pub-
lications in areas such as engineering, computer science, social science, and decision science
were therefore not considered. The search procedure generated a total of 64 articles which
were then carefully examined in the next stage.
The evaluation and selection of articles was carried out by screening and scrutinising the
titles and abstracts of the 64 articles. During the process, a spreadsheet was used to tabulate
the articles and facilitate their systematic inspection. This first screening resulted in 40 articles
that were within the scope of our study. Additional relevant materials were identified through
snowball sampling of references in the 40 articles, the careful examination of which resulted
in the inclusion of 15 additional pertinent articles. Overall, the number of articles selected for
the final review was 55. The contributions of these articles in relation to the potentials and
challenges of drones in SCM and logistics were verified through a comprehensive analysis
of the abstracts and the full texts. Figure 1 summarises the entire search procedure used
in this study.
4 A. REJEB ET AL.

Figure 1. Schematic presentation of the search and reporting procedure (Tranfield, Denyer, and Smart 2003; Denyer and Tra-
nfield 2009).

Figure 2. Annual distribution of papers.

 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 5

3. Descriptive analysis
3.1. Publications by year
Figure 2 depicts the chronological distribution of the reviewed articles. The majority of the articles
were published quite recently. 91% of the articles (n = 50) were published in the last five years. At
the time of analysis in mid-2020, eight articles had been published in 2020, 12 in 2019, 10 in 2018,
11 in 2017, 11 in 2017, 5 in 2016, and 4 in 2015. The remaining articles in the sample were published
in or before 2014. The earliest study to investigate drones in the context of SCM and logistics was
published in 2009. In the following years, there was no growth in the number of published articles.
However, from 2014 onward, a steep increase in the number of articles can be observed, reaching a
preliminary peak in the year 2019. This finding indicates that drones have only recently attracted
attention within the SCM and logistics community. This accords with Chang and Lee (2018)
who report that drones had only recently been spotlighted as a promising delivery method in
SCM and logistics, as the increasing capabilities of the technology gave rise to new possibilities
for companies (Clarke 2014). Similarly, as researchers focus their attention ever more on enabling
Industry 4.0 technologies (Olsen and Tomlin 2019) and their transformational impacts on the econ-
omic landscape (Tang and Veelenturf 2019), it is no surprise that research on drones is expanding.

3.2. Publications by journals

Figure 3 depicts the distribution of publications across the respective journals. Overall, the 55
articles were published in 43 different journals. The Journal of Humanitarian Logistics and Supply
Chain Management (JHLSCM) published the highest number of relevant articles on drones (n = 4).
Three journals published three articles each; namely, the International Journal of Logistics Research
and Applications (IJLRA), Transportation Research Part C: Emerging Technologies (TRPCET),
and Transportation Research Part E: Logistics and Transportation Review (TRPELTR). The jour-
nals that published two articles each were Computers and Operations Research (COR), Inter-
national Transactions in Operational Research (ITOR), and Natural Hazards (NH). The category
‘Others’ comprises the 36 journals that had each published only one article. A closer look at the
scope of these journals reveals that the research on drones was carried out from numerous perspec-
tives including humanitarian logistics, transportation, and operations research.

Figure 3. Distribution of papers across journals.

6 A. REJEB ET AL.

3.3. Publications by country

The authors’ affiliations at the time of publication were used to analyse the geographic distribution
of the selected publications. As depicted in Figure 4, the results show that the USA plays a pioneer-
ing role in drone-related research and dominates the scientific output. Overall, twenty-five (25)
publications originate from the USA, which also reflects the relevance for the US industry. In
July 2015, a company called ‘Flirtey’ carried out the first Federal Aviation Administration
(FAA)-approved drone delivery in the USA, and, in March 2016, they also conducted the first
autonomous FAA-approved urban delivery using a drone (Flirtey 2016). By 2026, the value of com-
mercial drone manufacturing and related service activities in the USA is estimated to increase from
$8 billion to $20 billion (McKinsey 2017). The potential of drones for US companies is expected to
unlock the great value of this technology thanks to its ability to streamline logistics activities and
facilitate automation.
South Korea, Turkey, and the UK contribute equally to the literature with five publications each.
South Korea has started designing and developing increasingly sophisticated UAV platform capa-
bilities for several logistics tasks (Sibley, 2017). In Turkey, UAV producer Baykar, defence corpor-
ation Aselsan, and the major appliances firm Arçelik, took part in the Turkish military plans to
employ cargo drones to run logistical operations and ensure the efficient delivery of weapons,
ammunition, and medical supplies to security forces (Bekdil 2020). In the UK, drone deliveries
were estimated to add £42 billion to the GDP by 2030 (PwC 2018). Countries contributing with
four publications to the relevant literature are Australia, Brazil, and China. Even though drone
deliveries are already a reality for numerous Chinese consumers, the relatively small contribution
of Chinese authors may be explained by the gap between theory and practice, a preference to pub-
lish drone-related research in professional journals, and the exclusive focus on English language
articles. The remaining countries in Figure 4 contributed three or less publications. Overall, the
country-wise distribution of publications demonstrates the leading position of developed countries
in drone-related research in the logistics and SCM field. Therefore, it is crucial for these nations to
transfer their knowledge and advanced experiences to developing nations so that more drone-
related research in logistics and SCM can be conducted globally.

3.4. Research method applied

Figure 5 shows the distribution of the selected 55 papers according to their methodological
approach. Nine (9) methodologies were used to categorise the reviewed publications. Non-

Figure 4. Distribution of papers according to country.

 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 7

Figure 5. Distribution of selected publications according to research methods.

empirical methods dominate in terms of quantity and diversity. Within this class, algorithmics are
the most frequently applied method of investigation. Seventeen (17) algorithmic-based studies were
conducted to solve routing problems for drone deliveries, optimise the integrated use of trucks and
drones in delivery networks, and minimise the total cost of drone-enabled delivery systems. Four
(4) studies used mathematical models, and four (4) studies employed simulation to investigate
nuances and evaluate the efficiency of drone-based delivery systems in comparison with surface
vehicles. Moreover, we found one study proposing a prototype and another applying text mining
to explore expert and public concerns regarding new technologies, including drones. The empirical
category contained thirteen (13) case studies and two (2) surveys. Furthermore, conceptual research
was performed in this field with ten (10) papers proposing a means of covering and conceptualising
fundamental concepts of drones’ potential for logistics and SCM, and three (3) papers reviewing
various industrial applications of the technology in fields as diverse as construction, mining, and
carrier sectors. Table 1 shows the distribution of all selected publications according to their research
methods.

4. Review findings
4.1. Potentials of drones in SCM and logistics
4.1.1. Support humanitarian logistics
According to Altay et al. (2018), humanitarian logistics and SCM is vital for preparing for and
responding to disasters and complex emergencies in order to alleviate the suffering of vulnerable
people. In cases where transportation networks are highly affected by natural disasters, conven-
tional modes of transportation such as trucks often cannot be used in response operations
(Chowdhury et al. 2017). To overcome this challenge, drones can be a very useful mode of trans-
portation in humanitarian logistics as they do not require any pre-existing flight path (Chowdhury
et al. 2017). For various reasons, drones have an enormous humanitarian potential. They can be
helpful in urgent areas of global public health because they are able to transport lightweight pay-
loads like medical tests, vaccines, or medicines to rural and inaccessible regions (Emery 2016).
Drones can also help to save the lives of disaster victims due to their high speed and accessibility
8 A. REJEB ET AL.

Table 1. Classification of publications according to research methods.

Research method Publications
Algorithmic Bouman, Agatz, and Schmidt (2018); Chang and Lee (2018); Chung (2018); Coelho et al. (2017); Dorling
et al. (2017); Es Yurek and Ozmutlu (2018); Ferrandez et al. (2016); de Freitas and Penna (2020); Ha et al.
(2018); Kim et al. (2017); Luo, Liu, and Shi (2017); Moshref-Javadi, Lee, and Winkenbach (2020); Murray
and Chu (2015); Shavarani et al. (2018); Shavarani et al. (2019); Wang et al. (2019); Xu, Kamat, and
Menassa (2018)
Case study Chowdhury et al. (2017); Golabi, Shavarani, and Izbirak (2017); Goodchild and Toy (2018); Hong et al.
(2015); Irizarry, Gheisari, and Walker (2012); Irizarry and Costa (2016); Mondragon et al. (2021); Shavarani
(2019); Shavarani and Vizvari (2018); Tatham (2009); Tatham et al. (2017); Wang, Poikonen, and Golden
(2017); Senthil, Ruthramathi, and Gayathri (2020)
Conceptual Clarke (2014); Emery (2016); Floreano and Wood (2015); Frachtenberg (2019); Goffnett et al. (2019);
Maharana (2017); Morgenthal and Hallermann (2014); Olsen and Tomlin (2019); Perussi, Gressler, and
Seleme (2019); Tang and Veelenturf (2019)
Mathematical Jeong et al. (2020); Pinto et al. (2020); Shavarani, Golabi, and Izbirak (2019); Shen et al. (2020)
model
Simulation Amouzegar, Drew, and Tripp (2010); Carlsson and Song (2018); Swanson (2019); Zhu, Pasch, and Bergstrom
(2020)
Review Lee and Choi (2016); LeMay and Keller (2019); Li and Liu (2019)
Survey Clothier et al. (2015); Sah, Gupta, and Bani-Hani (2020)
Prototype Nedjati, Vizvari, and Izbirak (2016)
Text mining Kwon, Kim, and Park (2017)

to remote and disconnected zones (Shavarani 2019). During disastrous situations, drones can be
employed to distribute humanitarian aid, survey damage, map survivors, and streamline service
delivery (Sah, Gupta, and Bani-Hani 2020). In this regard, Tang and Veelenturf (2019) argue
that the use of drones with thermal infrared cameras can enable a quick search for missing people,
provide better guidance for rescue forces, and decrease the overall rescue time. The authors give the
example of the US and The Netherlands, where some cities rely on automated external defibrillator
(AED) drones to save patients who experience sudden heart attacks. In Papua New Guinea, Emery
(2016) reports that drones have been of use to access remote communities that are plagued by some
of the world’s highest rates of tuberculosis.
Integrating the technology into emergency and disaster response protocols can help to meet the
needs of vulnerable people, provide instant relief benefits (Chowdhury et al. 2017), and reduce the
burden placed on overcrowded and incapacitated health facilities. In his study, Shavarani (2019)
develops a drone delivery system that involves relief centres and recharge stations, enabling drones
to reach points that are geographically dispersed. His proposed system is critical in disaster manage-
ment, as it allows for prompt emergency response and a significant projected decrease in fatality
rates. Likewise, Chowdhury et al. (2017) propose a continuous approximation (CA) model for iden-
tifying the optimal configuration of a drone-based humanitarian logistics system. They posit that
such a systemic optimisation could minimise the overall system cost, including the expected trans-
portation cost of using trucks and drones to serve heavily damaged regions. Floreano and Wood
(2015) argue that humanitarian drones enable rescue organisations to access confined spaces and
help fire-fighting and emergency units to evaluate dangers faster and more safely. Therefore, the
use of drones in humanitarian relief can be an effective solution to serve devastated regions and
to increase the overall agility of humanitarian logistics, where the core objective is to minimise
suffering and facilitate the transportation of basic necessities (e.g. food, medications) to affected
people.

4.1.2. Reduce delivery time in SCM and logistics

The integration of drones into SCM and logistics can contribute toward the design of agile, respon-
sive, and fast customer-oriented delivery models. In this context, Moshref-Javadi, Lee, and Winken-
bach (2020) propose a synchronised truck and drone-based delivery system (TDDS) to enhance the
efficiency of the last-mile delivery of package-sized goods and reduce the waiting times of customers
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 9

for their deliveries. In their multi-model delivery system, drones can be combined with trucks to
develop a customer-centric TDDS that significantly reduces waiting times as compared to a
truck-only model. As consumers are demanding ever higher degrees of product availability and
convenience and faster delivery times (Vallandingham et al. 2018), this presents an opportunity
for companies to use drones to avoid delays caused by traffic congestion, to minimise human inter-
vention in the transport process (Pinto et al. 2020), and to shorten delivery times significantly (de
Freitas and Penna 2020). The waiting or delivery time is a prominent and central aspect of the ser-
vice level of many industries including retailing. For example, the online retailer Amazon has
shown interest in using drones to offer delivery to the company’s premium customers within
30 min of ordering (Wang, Poikonen, and Golden 2017). Mercedes-Benz has recently expressed
its desire to use a ‘drone-equipped delivery van’ that employs roof-mounted UAVs and robotic
package-sorting devices (Es Yurek and Ozmutlu 2018). With the implementation of drones in
SCM and logistics, last mile delivery would no longer be a pressing concern for businesses and retai-
lers as the ability of the transportation system to deliver products to customers on a timely basis
increases considerably (Dorling et al. 2017). The same service could enable firms to maintain
desired customer service levels (Pinto et al. 2020; Shen et al. 2020), increase customer satisfaction,
and add value to their brands.

4.1.3. Reduce SCM & logistics costs

Supply chain and logistics costs comprise transport, warehouse, and order costs. One way for firms
to minimise these is to adopt drones in their SCM and logistics activities. In terms of cost, drones
may be more efficient and have lower carbon costs than trucks because they are powered by bat-
teries instead of gasoline (Ha et al. 2018). The implementation of drones in delivery operations
is fast and affordable with regard to transportation cost per kilometre (Wang et al. 2019). For
instance, Shavarani et al. (2019) estimate that aerial delivery systems will result in a cost saving
up to USD 50 Million/year. Compared to conventional delivery vehicles (i.e. trucks), drones are
cheaper to maintain and they have the potential to reduce labour costs by carrying out tasks auton-
omously (Dorling et al. 2017). When combined with trucks, Moshref-Javadi, Lee, and Winkenbach
(2020) argue that UAVs can yield substantial cost savings, particularly for making deliveries in sub-
urban regions with moderate density levels. As drones enable the on-time delivery of products to
customers, they help to maintain smooth and efficient SCM and logistics operations and avoid delay
costs. Given that a fleet of drones is less expensive to manage than a ground fleet, global retailers like
Amazon and Alibaba (Es Yurek and Ozmutlu 2018; Tang and Veelenturf 2019) have been investing
in drone last-mile delivery systems to deliver parcels directly from a depot to their customers in
order to reduce the overall delivery cost. In the construction industry, Hong et al. (2015) state
that firms can reduce the cost of data processing through the use of UAV images. In the same
vein, Li and Liu (2019) recognise that drone-based progress monitoring can significantly reduce
delays in construction projects, thus increasing profitability.

4.1.4. Improve SCM & logistics flexibility

The utility of drones resides in their versatility, flexibility, affordability, and ability to operate for
long periods in diverse meteorological circumstances that would preclude the use of manned air-
craft (Tatham et al. 2017). Shen et al. (2020) point out that a drone can deliver a package from a
warehouse to a particular destination using less manpower and adding more flexibility in the pro-
cess. By increasing the flexibility of the transportation system, firms can forge closer ties with their
customers, reduce the duration of planning cycles, optimise routing changes, and guarantee indi-
vidual delivery and customer satisfaction (Perussi, Gressler, and Seleme 2019). In cases where the
distribution centre is situated far from customers, firms can combine drones with traditional deliv-
ery trucks to make deliveries more flexible, efficient, and agile (Murray and Chu 2015). For the con-
struction industry, Irizarry and Costa (2016) argue that the flexibility of drones can overcome the
limitations of photography services in terms of service timing and provide the project personnel
10 A. REJEB ET AL.

with real-time access to images and videos of the site from preferred angles. Beyond conventional
SCM and logistics, Jeong et al. (2020) posit that drones offer greater mobility and flexibility in
humanitarian logistics, allowing one to perform a wide variety of tasks (e.g. spotting people, moni-
toring affected zones, and delivering supplies). Therefore, the use of drones in SCM and logistics is
expected to increase the speed and flexibility of supply chain operations and to enable firms to
respond faster to customer needs.

4.1.5. Increase SCM & logistics sustainability

Drones have the potential to improve the environmental performance of firms since, unlike con-
ventional delivery models, they need not produce high levels of carbon dioxide emissions (Murray
and Chu 2015; Chung 2018; Shavarani et al. 2018; Li and Liu 2019; Jeong et al. 2020). Since drones
are powered by electric engines with rechargeable batteries, they have the potential to be more
environmentally friendly than fossil-fuel dependent alternatives in terms of greenhouse gas
(GHG) and pollutant emissions (Moshref-Javadi, Lee, and Winkenbach 2020). In recent research,
Li and Liu (2019) investigate the application of multirotor drones and discuss their implications for
several activities related to construction, such as land surveying, logistics, on-site construction,
maintenance, and demolition. The authors conclude that drones can not only reduce CO2 emis-
sions, but also increase the economic performance of a firm and promote workplace safety. Good-
child and Toy (2018) examine whether the use of drones can lead to a net positive environmental
impact in terms of vehicle-miles travelled and CO2 emissions. They found that the incorporation of
drones, which average 40 Watt-hours per mile, would generate a net positive environmental impact
as the integrated drone-truck delivery system would result in less polluting emissions. Drones can
further help to alleviate some environmental concerns (e.g. climate change, air pollution) through
their convenient use in monitoring energy projects, such as solar farms, pipelines, and wind tur-
bines. In this manner, they may contribute significantly to sustainable development (Li and Liu
2019) and reducing traffic congestion (Moshref-Javadi, Lee, and Winkenbach 2020). From a social
sustainability perspective, the vulnerability and complexity of work could be reduced by the use of
drones. For instance, drone-based technologies can mitigate serious safety problems associated with
dangerous structural inspections, including those related to steep-sloped roofs, exterior facades and
walls, tall towers and bridges, and damages caused by fires and explosions (Li and Liu 2019). There-
fore, drones can help organisations maintain a balance between social and environmental values in
their supply chains and logistics.

4.2. Challenges of drones in SCM and logistics

Despite the many utilities of drones in SCM and logistics and their potential to increase responsive-
ness and reduce costs, the wide-scale implementation of this technology is not yet visible (Sah,
Gupta, and Bani-Hani 2020). In this section we discuss the various challenges hampering the use
of drones in SCM and logistics.

4.2.1. Technical challenges

Several technical hurdles currently prevent the widespread adoption and acceptance of drones in
SCM and logistics. The primary technical limitation of drones is their limited payload capacity
and their inability to carry much weight or fly for long periods (Chowdhury et al. 2017; Tatham
et al. 2017; Moshref-Javadi, Lee, and Winkenbach 2020). As such, drones have limited carrying
capabilities and service range as compared to trucks (Chung 2018). Similarly, they do not allow
for multiple trips to the depot (Dorling et al. 2017). For this reason, Tatham et al. (2017) believe
that the low scalability of drones makes them inefficient for certain types of deliveries, especially
those with excessive weight (Murray and Chu 2015). Moreover, the lack of electrical storage
capacity can limit the flight time of drones to 20 min after a charging time of one hour (Li and
Liu 2019). Another barrier to the adoption of drones in logistics activities is weather. According
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 11

to several studies, drones are sensitive to harsh weather conditions such as rains, fogs, storms, or
strong winds (Morgenthal and Hallermann 2014; Maharana 2017; Li and Liu 2019; Sah, Gupta,
and Bani-Hani 2020). Climate conditions and flight restricted zones may cause failures in the
GPS-signal, shifting the control from automatic flight mode to manual mode (Morgenthal and Hal-
lermann 2014), with a corresponding negative impact on the drone’s flight path (Hong et al. 2015).
In urban areas with high electronic communications traffic, Clarke (2014) argues that signals
between drones and remote pilots, not to mention between drones and GPS satellites, may be sub-
ject to interference and collisions.
Firms that use drones in their supply chain and logistics processes also need to tackle security
and privacy issues. For example, drone-delivery systems can encounter disruptions due to cyber
or physical attacks (Sah, Gupta, and Bani-Hani 2020). Because they fly close to residences, drones
give also rise to public privacy and security concerns (Sah, Gupta, and Bani-Hani 2020), since they
can potentially be used to collect data and spy on people (Maharana 2017). Currently, several
drones carry onboard cameras that can invade the personal space of logistics operators and generate
feelings of intrusion and discomfort through constant surveillance. Although delivery drones do
not necessarily rely on cameras for navigation, the inclusion of these additional features may result
in the unethical usage of drone imagery capabilities in collecting data, identifying individuals, and
recording visual data within buildings. So, the intentional misuse of drones or their malfunction can
not only lead to the delivery of packages to the wrong destination but also spur privacy concerns
(Zhu, Pasch, and Bergstrom 2020). Therefore, effective privacy measures and safeguards are
required to allay privacy fears and the discomfort of logistics operators when drones hover close
to their sites. This can be achieved, for example, by establishing reasonable measures to establish
informed consent for data captured by drones or making sure that photographed individuals or
unique elements are blurred. As with other activities in SCM and logistics, user security and privacy
must always be safeguarded when implementing drones.

4.2.2. Organisational challenges

Drone technology remains infrequently used in SCM and logistics (Amouzegar, Drew, and Tripp
2010; Senthil, Ruthramathi, and Gayathri 2020) due to several organisational barriers. In practice,
the transition toward drone-based logistics systems requires a sophisticated supporting infrastruc-
ture for the remote pilot (Clarke 2014). To ensure the success of drones, organisations are required
to assess the feasibility of requisite investment in the technology, the resources necessary for the
operations, the assignment of drones to stations, the best routes to carry out flights, and the allo-
cation of customer demands to stations (Shavarani et al. 2018). For example, Shen et al. (2020)
find that the battery-swap strategy outperforms the plug-in-charge strategy, yet this implies signifi-
cant additional investments for spare batteries. Pinto et al. (2020) argue that the stations used in
drone logistics systems may require substantial investment costs, as they should be strategically
established close to routes travelled by drones to deliver products. Continuing this line of research,
Murray and Chu (2015) note that close proximity to customers may necessitate a relocation of exist-
ing distribution centres or the construction of new ones, thereby creating additional costs for com-
panies. Shavarani et al. (2018) suggest that pure drone delivery systems are not as cost-efficient as
the use of combined truck-drone systems. Consequently, the cost of developing drone-delivery sys-
tems may outweigh the benefit of adopting the technology, and there may be no readily-determin-
able way to realise major cost savings from the use of drones (Amouzegar, Drew, and Tripp 2010;
Coelho et al. 2017; Chung 2018; Perussi, Gressler, and Seleme 2019).
The integration of drones in SCM and logistics may also be hampered by the lack of organis-
ational capabilities, experience, and available skills to use this technology (Kashurnikov et al.
2019). Drones can impose a substantial cognitive load on pilots even though their ground-based
control brings several advantages. According to Clarke (2014), this cognitive load can approach
that of an on-board pilot and lead to dangerously slow or erroneous commands and malfunctions.
Furthermore, despite being less harmful to the environment overall, drone use presents several
12 A. REJEB ET AL.

environmental issues (Sah, Gupta, and Bani-Hani 2020), including congestion in lower-level air-
space, noise pollution (Zhu, Pasch, and Bergstrom 2020), and relatively higher CO2 emissions
when the customer is geographically distant from the service depot (Goodchild and Toy 2018).

4.2.3. Safety challenges

Drones can pose a potential threat to people, properties, nature, wildlife, and the environment
(Clarke 2014; Maharana 2017; Shavarani et al. 2018; Sah, Gupta, and Bani-Hani 2020). When
drones collide, shut down, or lose control, serious injuries and fatalities can result (Emery 2016).
As previously discussed, harsh climatic circumstances may cause a drone to crash, thus resulting
in accidents and property damage (Sah, Gupta, and Bani-Hani 2020). To date, drones still lack
an effective collision avoidance system (Morgenthal and Hallermann 2014). This makes them inap-
propriate for some industries, such as construction, where Irizarry, Gheisari, and Walker (2012)
state that workers may be distracted or even hit by drones. Maharana (2017) point out that drones
can be used by enemies and malicious outsiders to spy on government buildings or to carry out
terrorist attacks. As a result, drones may consist of technological features that are socially unaccep-
table (Kwon, Kim, and Park 2017) and that discourage people from adopting them (Sah, Gupta, and
Bani-Hani 2020).

4.2.4. Regulatory challenges

Being a new technology in the logistics sector, regulatory uncertainty still surrounds the adoption of
drones. Regardless of their demand and commercial viability, the effective deployment of drones in
SCM and logistics is not feasible unless there are government regulations and standards supporting
the technology (Sah, Gupta, and Bani-Hani 2020). For example, Emery (2016) and Nedjati, Vizvari,
and Izbirak (2016) state that legalisation is still a pressing challenge for the use of UAVs for huma-
nitarian purposes and peace-keeping operations, even with the USA and countries in the OECD
developing directions for the civilian use of these devices. Shavarani et al. (2018) point out that
regulations of the US Federal Aviation Administration (FAA) forbid the commercial use of drones,
and organisations are hoping for regulatory support to develop their own delivery system. The
regulatory environment (Irizarry and Costa 2016) and industry standards are imperative to facili-
tate the use of drones, increase safety, and reduce risks related to this technology (Maharana 2017).
Therefore, there is an urgent need for appropriate regulatory frameworks that support the fully
dynamic and synchronised control and oversight of multi-modal drone-based logistics systems
(Moshref-Javadi, Lee, and Winkenbach 2020).
Table 2 summarises the overall potentials and challenges of drones in SCM and logistics as found
in the reviewed literature.

4.3. Real-life drone deployments in logistics and SCM

As discussed previously, drones represent a disruptive technology that can radically transform the
logistics sector and fulfil several functions in SCM. Currently, drones are widely applicable to a wide
variety of businesses and industries. For example, retail and e-commerce firms are seeking ways to
reduce delivery times and costs by leveraging drones for last-mile deliveries. Amazon has been
regarded the frontrunner firm after announcing a project to adopt drones for last-mile delivery,
transporting parcels from a depot to customers (Murray and Chu 2015; Es Yurek and Ozmutlu
2018; Shavarani, Golabi, and Izbirak 2019). In general, drones will help retailers to resolve several
existing challenges for the retail industry, such as navigating highly populated areas, traffic jams,
high fuel costs, and delivery delays (Shavarani, Golabi, and Izbirak 2019). To stay ahead in the com-
petition and increase customer satisfaction, retailers can therefore look to drones to increase their
logistics performance and increase their revenues since serving hard-to-reach populations would no
longer be such a challenge. For example, Chinese retailers Alibaba and JD.com use drones to deliver
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS
Table 2. Potentials and challenges of drones in SCM & logistics.
Potentials/ challenges Description
(1) Support . Increase access to vulnerable people
humanitarian logistics . Streamline the delivery of basic necessities
(e.g. food, medicines, vaccines)
. Facilitate human aid
. Increase humanitarian logistics agility and
minimise suffering and death
(2) Reduce delivery time . More agile, responsive, and consumer-
in SCM & logistics centric delivery systems
. Enhance product availability and the
efficiency of last-mile delivery
. Minimise waiting times and maximise
customer satisfaction
(3) Reduce cost in SCM . Fast and affordable transportation
& logistics . Cost savings and increased profitability
. Eliminate inefficiencies and losses caused
by delivery delays
(4) Increase SCM & . Better and more flexible delivery services
logistics flexibility . Versatility and ability to operate in harsh
conditions
. Complementarity with truck-delivery
model
. Increased customer satisfaction through
fast responses and deliveries
(5) Foster SCM & . Enhanced environmental performance
logistics sustainability through the reduction of pollutant
emissions
. Support environment-oriented projects
(e.g. the promotion of renewable energies)
. Enhance social performance through
increased workplace safety and
minimisation of accidents
(1) Technical challenges . Limited payload capacity and flight
endurance
. Quick battery depletion
. Limited resistance to weather conditions
. Interference and collision issues
. Privacy and security concerns
(2) Organisational . Costly investments in the supporting
challenges infrastructure
. Lack of organisational capabilities, skills,
and experience in using drones
. Increased pressure and stress on logistics
operators
. Sustainability issues such aerial congestion,
noise pollution, and CO2 emissions
(3) Safety challenges . Risks of collisions and breakdown
. Operational injuries, accidents, and
fatalities
. Espionage and terrorist attacks
13
Supporting literature
Chowdhury et al. (2017); Emery (2016); Floreano
and Wood (2015); Jeong et al. (2020); Moshref-
Javadi, Lee, and Winkenbach (2020); Nedjati,
Vizvari, and Izbirak (2016); Sah, Gupta, and Bani-
Hani (2020); Shavarani (2019); Tang and
Veelenturf (2019); Tatham (2009); Tatham et al.
(2017)
Chang and Lee (2018); Dorling et al. (2017); Es
Yurek and Ozmutlu (2018); de Freitas and Penna
(2020); Jeong et al. (2020); Li and Liu (2019);
Moshref-Javadi, Lee, and Winkenbach (2020);
Nedjati, Vizvari, and Izbirak (2016); Pinto et al.
(2020); Shavarani et al. (2018); Shavarani et al.
(2019); Shen et al. (2020); Zhu, Pasch, and
Bergstrom (2020)
Chowdhury et al. (2017); Dorling et al. (2017); Es
Yurek and Ozmutlu (2018); Ha et al. (2018); Hong
et al. (2015); Li and Liu (2019); Moshref-Javadi,
Lee, and Winkenbach (2020); Perussi, Gressler,
and Seleme (2019); Shavarani et al. (2019); Tang
and Veelenturf (2019); Wang et al. (2019)
Hong et al. (2015); Irizarry, Gheisari, and Walker
(2012); Irizarry and Costa (2016); Jeong et al.
(2020); Luo, Liu, and Shi (2017); Murray and Chu
(2015); Perussi, Gressler, and Seleme (2019); Shen
et al. (2020); Tatham (2009); Tatham et al. (2017)
Chung (2018); Goodchild and Toy (2018); Jeong
et al. (2020); Li and Liu (2019); Moshref-Javadi,
Lee, and Winkenbach (2020); Murray and Chu
(2015); Shavarani et al. (2018); Tang and
Veelenturf (2019)
Chowdhury et al. (2017); Chung (2018); Clarke
(2014); Dorling et al. (2017); Hong et al. (2015); Li
and Liu (2019); Maharana (2017); Morgenthal and
Hallermann (2014); Moshref-Javadi, Lee, and
Winkenbach (2020); Sah, Gupta, and Bani-Hani
(2020); Tatham et al. (2017)
Amouzegar, Drew, and Tripp (2010); Chung (2018);
Clarke (2014); Coelho et al. (2017); Goodchild and
Toy (2018); Kashurnikov et al. (2019); Perussi,
Gressler, and Seleme (2019); Pinto et al. (2020);
Sah, Gupta, and Bani-Hani (2020); Senthil,
Ruthramathi, and Gayathri (2020); Shavarani et al.
(2018); Shen et al. (2020); Zhu, Pasch, and
Bergstrom (2020)
Clarke (2014); Emery (2016); Irizarry, Gheisari, and
Walker (2012); Kwon, Kim, and Park (2017);
Maharana (2017); Morgenthal and Hallermann
(2014); Nedjati, Vizvari, and Izbirak (2016); Sah,
(Continued )
14 A. REJEB ET AL.

Table 2. Continued.
Potentials/ challenges Description Supporting literature
Gupta, and Bani-Hani (2020); Shavarani et al.
(2018); Zhu, Pasch, and Bergstrom (2020)
(4) Regulatory . Lack of regulatory support and industry Clarke (2014); Irizarry and Costa (2016); Kwon, Kim,
challenges standards and Park (2017); Maharana (2017); Moshref-
. Regulatory uncertainty and obstacles Javadi, Lee, and Winkenbach (2020); Murray and
. Lack of regulations applicable to small Chu (2015); Pinto et al. (2020); Shavarani et al.
drones (2018); Wang, Poikonen, and Golden (2017)

packages and time-sensitive products (e.g. fresh foods) to distant locations, thus achieving cost sav-
ings and faster delivery times.
In the parcel and courier industry, heightened delivery costs, increased reliance on the work-
force, congestion costs, dependency on third-party logistics, and missed deliveries pose significant
challenges for companies. Therefore, the deployment of drones in this industry may also yield sev-
eral benefits. For example, Singapore Post, DHL, FEDEX, UPS, Swiss Post, and Australia Post have
used drones to provide timely express shipments and launch new operating models based on the
truck-drone delivery system (Ferrandez et al. 2016) which also corroborated their customers’ will-
ingness to pay for expedited deliveries. Drones can provide a high speed and precise delivery of par-
cels to destination points due to their intelligent functions like automatic take-off and landing,
automatic loading and unloading of hanging warehouses, and classification of parcels and quick
access. As a result, parcel and courier companies can mitigate potential delivery disruptions and
gain increased control over their logistics performance in terms of speed, reliability, and cost.
Besides the sophisticated, careful, and convenient handling of deliveries, companies operating in
the high-tech industry like Google and Facebook are considering advanced sources of value creation
and competitive advantage such as the use of drones to offer free internet to areas lacking connec-
tivity (Maharana 2017).
The issue of delivering perishable and time-critical medical supplies is widely encountered in the
pharmaceutical industry, where the scarcity of reliable delivery mechanisms restricts access to
emergency medicines. To counter this problem, rapid delivery by drones can significantly impact
the shipment of time-critical products. As such, drones are a viable mode of transportation (Ned-
jati, Vizvari, and Izbirak 2016) that can prevent delays in critical and life-saving medical supplies.
Prominent examples include the US-based companies Matternet and Zipline. Aiming to accelerate
the adoption of drones in the pharmaceutical industry, these companies deliver essential pharma-
ceuticals to remote areas and hard-to-reach regions. The distribution of such pharmaceuticals and
highly sensitive biological materials can be enhanced by applying drones as they contribute to medi-
cal logistics automation, efficiency, responsiveness, and agility (Chung 2018; Shavarani et al. 2019).
Drone deliveries can be very lucrative during emergency and relief operations, particularly if
they are equipped to support the cold storage of medical deliveries in regions that are hard to access
by road-based transportation. One industry that can especially benefit from drones is the automo-
tive industry. In general, the automotive industry is characterised by its complex new product inno-
vations (Ettlie and Pavlou 2006), digitalised client-supplier relationships (de Corbière, Rowe, and
Saunders 2019), and the need for radically different technological solutions (Calvi, Johnsen, and
Picaud Bello 2018). As a pioneering industry when it comes to the adoption of novel technologies,
there are immense benefits of integrating drones in automotive logistics and SCM processes. For
instance, drones can deliver solutions to reduce congestion and increase safety for car manufac-
turers. In this regard, Audi uses drones to identify cars ready to be dispatched through its embedded
GPS and RFID technology. The automatic data capture and collection allow logistics operators to
locate the vehicles ready for dispatch more efficiently based on a unique identifier. Mercedes-Benz
has announced a ‘drone-equipped delivery van’ concept vehicle that uses roof-mounted UAVs and
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 15

robotic package-sorting devices (Bouman, Agatz, and Schmidt 2018; Es Yurek and Ozmutlu 2018).
The project constitutes a synergistic work between vans and drones wherein a drone reads the des-
tination information using a QR code on the package and proceeds to deliver products like auto-
mobile parts. Similarly, AMP Electric Vehicles has collaborated with researchers at the University of
Cincinnati to design a drone prototype that can take off and return to a delivery truck (Murray and
Chu 2015). Drones paired with a delivery truck can also provide extra support and more data to
drivers regarding road conditions, thereby preventing accidents and optimising routing strategies.
The reliability of automotive part production in terms of maintenance, repair, and availability can
be improved by the use of drones as companies will be able to better monitor the plant’s machinery
and security, as well as reduce employees’ exposure to risks due to heights, heat, and chemical sub-
stances (Oponeo 2019). Similar to the automotive industry, in the airline industry there is a pending
need to reduce operational inefficiencies, long inspection and maintenance times, and flight delays.
Capitalising on the capabilities of drones, EasyJet, a UK-based low-cost airline company, is con-
ducting trials with drones in maintenance hangers. In this process, drones called ‘Risers’ are pro-
grammed to scan and assess any craft damage and improve the maintenance team’s ability to
conduct remote checks, resulting in greater time efficiency and accuracy in defect reporting (Sibley,
2017).
Overall, the geographic distribution of major companies deploying drones is unbalanced and
confirms the technological divide between developed and developing countries in terms of current
drone implementations. Another interesting finding is the unprecedented interest of retail and
courier service companies in adopting drones in their strategic delivery plans. Table 3 presents a
detailed overview of companies adopting drones across several industries and their respective
use cases.

5. Research agenda, implications, and limitations

5.1. Research agenda
Surveying the extant literature on drones within the SCM and logistics context, we have noticed the
paucity of reviews discussing the potentials and challenges of this compelling technology. There-
fore, this study closes a current gap in the literature and makes a contribution as a first attempt
to systematise the existing body of knowledge pertaining to the use of drones in SCM and logistics.
We present an overview of the expectations regarding this technology, the factors restraining its
diffusion in SCM and logistics, and some of the unwanted outcomes. Given that most prior studies
have focused on the ability of drones to operate as standalone devices, scholars may consider exam-
ining the interoperability of drones with other technologies such as the IoT, cloud computing, aug-
mented reality, and big data analytics. The outcomes of this SLR and the different clusters identified
represent an initial attempt to consolidate the growing body of research and theory on drones and
their relationship to SCM and logistics. To stimulate further academic research on the technology,
we set forth a research agenda aimed at sharpening understanding of where the technology is
headed. Table 4 presents the agenda and the identified research gaps that need urgent scholarly
attention, considering the technical, organisational, and adoption aspects of drones in SCM and
logistics.

5.2. Theoretical implications

In this study we investigate the current academic literature covering the potentials and challenges of
drones in SCM and logistics. We conducted an SLR on fifty-five (55) journal articles using a rigor-
ous review methodology. The selected articles were carefully and comprehensively examined for
this purpose. The findings of the review suggest that drones are a relatively new technology that
offers promising potentials but also creates numerous challenges in SCM and logistics. Tracking
16 A. REJEB ET AL.

Table 3. Overview of major adopters of drones in logistics and SCM.

How can drones
Geographic contribute to logistics and
Industry Company location Challenges SCM? Source
Retail Amazon USA . High populated . Facilitate delivery of Chung, Sah, and Lee
Walmart USA metropolises products or services (2020); de Freitas
Alibaba China . Traffic jams . Reduce human and Penna (2020);
JD.com China . High fuel costs intervention or Murray and Chu
. Labour-intensive guidance (2015); Shavarani
logistics activities . Reduce delivery and et al. (2019); Tang
. Fierce competition transportation costs and Veelenturf
in the e-tailing . Optimise routing (2019); Wang et al.
sector strategies and (2019)
. Difficulties to operations scheduling
provide parcel . Provide versatile
delivery services to delivery applications
rural areas and (varying from, for
inaccessible places example, pizza to
document delivery)
. Ensure fast and reliable
delivery services
. Access hard-to-reach
environments (e.g.
islands)

Parcel and Singapore Singapore . Labour-intensive . Support delivery of Bouman, Agatz, and
courier Post tasks parcels and mail Schmidt (2018);
DHL Germany . Reliance on third- . Safe transportation of Dorling et al. (2017);
FEDEX USA party logistics sensitive products (e.g. Nedjati, Vizvari, and
UPS USA . Delivery delays medicine) Izbirak (2016); Tang
Swiss Post Switzerland . Operational . Provide urgent express and Veelenturf
Australia Australia inefficiencies shipments and rural (2019); Wang,
Post deliveries Poikonen, and
. Create new operating Golden (2017)
models based on the
use of regular trucks
and drones to make
deliveries
. Increase transport
efficiency
. Enable a series of
intelligent tasks such as
automatic take-off and
landing, automatic
loading and unloading
of a hanging
warehouse, automatic
classification of express
and quick access
. Gain better control of
the last mile delivery
performance (i.e.
speed, reliability, and
cost)
. Improve lab logistics
and delivery times
. Increase customer
willingness to pay for
expedited deliveries

High-tech Facebook USA . Lack of . Offer free internet to Lee and Choi (2016);
Google USA connectivity areas where there is no Maharana (2017)
Rakuten Japan connection

(Continued )
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 17

Table 3. Continued.
How can drones
Geographic contribute to logistics and
Industry Company location Challenges SCM? Source
. Facilitate package
deliveries
. Carry out convenient
store deliveries

Pharmaceuticals Matternet USA . Labour-intensive . Ensure safe Ha et al. (2018); Jiang

Zipline USA and costly transportation of (2020)
transportation medicines and blood
processes samples
. Increase logistics
automation,
responsiveness, and
agility

Automotive Amp UK . Operational . Develop drones that Bouman, Agatz, and

Electric inefficiencies in deploy from a Schmidt (2018); Es
Vehicles logistics and SCM compartment in the Yurek and Ozmutlu
Mercedes- Germany . Supply chain roof of electric delivery (2018); de Freitas
Benz fragmentation trucks and Penna (2020)
Audi Germany . Need for new . Leverage the van-
automation and delivery concept to
sophistication transport automobile
. Poor parts
environmental . Increase environmental
performance sustainability
. Work safety risks . Achieve cost savings
. Locate vehicles at
automotive plants
. Help employees to
plan the necessary
steps from completion
of the vehicles to
dispatch to customers
. Improve
environmental
performance

Airline EasyJet UK . Operational . Facilitate logistics Sibley (2017)

inefficiencies maintenance
. Long inspection . Reduce inspection time
and maintenance . Increase employee
times safety
. Flight delays

the evolutionary trend of the reviewed literature, we notice that research interest in the technology
has increased in recent years. Our SLR detected the predominance of journals such as JHLSM,
IJLRA, TRPCET, and TRPELTR in publishing drone-related research in humanitarian logistics,
business logistics, and transportation. Within the selected papers, a focus was placed on the capa-
bilities of drones to increase the responsiveness of humanitarian operations, minimise the suffering
of vulnerable people, and increase access to basic necessities. Moreover, drones can benefit organ-
isations through reducing delivery times, minimising delivery costs, increasing SCM and logistics
flexibility, and fostering economic, social, and environmental sustainability.
18 A. REJEB ET AL.
Table 4. Agenda for future research.
Research aspect Research gaps
Technical aspects . Empirical research investigating the capabilities
and features of drones in SCM and logistics
. Empirical research reporting the technical
features influencing the performance of drones
in SCM and logistics
. Research studying the optimal number of
facilities, launch sites, and drones used in last
mile delivery systems
. Experiments testing the efficiency and
effectiveness of drones in different outdoor
logistics settings and circumstances
. Design science studies recommending the key
features and technical components enhancing
the overall performance of drones in SCM and
logistics
. Research assessing the complementarity of
drones with Industry 4.0 technologies (e.g. big
data analytics, blockchain, the IoT)
. Studies proposing feasible solutions to the key
technical issues of drones
Organisational . Cost-benefit analysis of drone-based logistics
aspects systems
. Research investigating the mechanisms that can
support commitments and investments in
drones
. Case studies highlighting the success and failure
factors of drone implementation within
organisations
. Studies investigating the impact of drones on
environmental sustainability
. Research addressing the implications of drones
on the social dimensions of sustainability,
including worker safety, job displacement, and
social divide in SCM and logistics
. Industry standards for drone interoperability,
security, safety, and privacy
Adoption aspects . Studies employing theories that explain the
usage of drones such as Technology Acceptance
Model (TAM), Unified Theory of Acceptance and
Use of Technology (UTAUT), and Technology-
Organisation-Environment (TOE) framework
Future research directions
. To investigate the recent technical advances in
drones and evaluate their utility in SCM and
logistics
. To look into the technical factors influencing
drone service time, endurance, and safety
throughout logistics processes
. To determine the optimal number of drone
deliveries, trucks, stops, and launch sites used per
route
. To identify the optimal number of drones per
truck that can be used in a hybrid transportation
model
. To conduct experiments to find the performance
of drones relative to that of trucks
. To understand how the speed, endurance, and
manoeuvring of drones are impacted by diverse
weather conditions (e.g. wind flows)
. To identify the technical measures and add-ons
that have the potential to increase the resistance
of drones to harsh climate conditions (e.g. rain,
wind, snow, hail) and to decrease service delays
. To advance innovations aiming at optimising
battery capacity, drone weight, and energy
consumption
. To investigate how firms can integrate drones
with emerging Industry 4.0 technologies to
overcome the technical deficiencies inherent in
drone delivery systems
. To examine the costs and benefits of drone
implementation in various strategies (e.g. truck-
drones delivery systems or pure aerial
transportation mode)
. To study the openness of top managers to
drones and their willingness to engage in drone-
based systems
. To derive best practices from successful and
unsuccessful drone implementations
. To assess environmental sustainability in case of
widescale implementation of drones
. To examine the costs of supply chain and
logistics disturbances caused by drone-delivery
delays, crashes, and hijacking
. To understand whether drones empower or
threaten the autonomy and sense of control of
users and customers
. To assess the social distance between
organisations and their supply chain partners
when using drones for delivery services or
humanitarian operations
. To investigate the importance of security,
privacy, and interoperability standards to
facilitate the uptake of drones in SCM and
logistics
. To identify the adoption drivers and barriers of
drones in SCM and logistics
. To understand the cultural factors that affect the
transition toward drone-based logistics systems
. Adoption of drones in developing and emerging
economies
(Continued )
 INTERNATIONAL JOURNAL OF LOGISTICS RESEARCH AND APPLICATIONS 19

Table 4. Continued.
Research aspect Research gaps
. Research investigating whether the adoption of
drones has any significant impact on
organisational performance and customer
satisfaction
. Assessing the level of preparedness of large/
small businesses to adopt drones
. Studies clarifying the necessary processes and
preconditions for the adoption of drones
. Investigation of the competitive push for the
adoption of drones in SCM and logistics
Future research directions
. To understand the resources, capabilities, and
skills necessary for the deployment of drones
. To understand the organisational routine in case
of deploying drones in organisational business
processes
. To comprehend how the adoption of drones can
increase customer satisfaction and boost value
creation

However, the advantages of the technology do not come without creating substantial challenges.
In this regard, several studies have highlighted the technical limitations that hamper the effective
integration of drones in SCM and logistics. These include the limited loading capacity, flight
time, quick battery drain, interference, and sensitivity to privacy and security concerns. Therefore,
best practices and recommendations must be devised to ensure the responsible use of drones,
including clear data retention and deletion policies and methods to prevent invasions of privacy.
In this regard, novel privacy-preserving approaches with high scalability and computing speed
can help to overcome the trade-off between privacy preservation and data utility for more informed
decision-making in logistics and SCM. The findings also indicate that a transition toward drone-
based logistics systems can be hindered by the costs, lack of underlying infrastructure and skills
to operate drones, as well as the negative environmental impacts of the technology. Moreover,
the extant literature has revealed that drones may create additional safety concerns pertaining to
collisions, operational accidents, and fatalities. From a regulatory perspective, scholars therefore
frequently emphasise the need for industry standards and regulations that are applicable to all
types of drones without exception.

5.3. Managerial implications

The present study consolidates prior scholarly research around drones and provides managers and
practitioners with timely insights into the potentials and challenges of this technology for SCM and
logistics. The findings of the review as summarised in Table 2 will guide managers of different
organisations, including those working in the humanitarian field, to critically evaluate how their
organisations can benefit from the adoption of drones. This study especially shows that managers
can use this technology to improve their humanitarian efforts, saving lives and supplying basic
necessities to vulnerable communities. In the context of logistics 4.0 (Bag, Gupta, and Luo 2020),
there is a need to continuously adapt, engage with, and implement new technologies to enhance
the performance of logistics systems. To accomplish this, organisations can capitalise on the capa-
bilities of drones to reduce their delivery time and cost. Drones can be used to achieve flexibility and
agility in SCM and logistics, which are often regarded as the focal point of strategic planners (Chen,
Hwang, and Raghu 2010). The importance of drones to foster social and environmental perform-
ance has been reported in the literature, suggesting that organisations can use the technology to
address the increasing sustainability needs of customers. By leveraging drones, logistics functions
within an organisation may turn into a strategic competitive asset that creates social value and
enables triple bottom line sustainability. However, as we argue in this study, new issues and chal-
lenges can also emerge from the implementation of drones in SCM and logistics. These are mainly
related to the technical aspects of drones, the lack of organisational commitment to the develop-
ment of drone-based logistics systems, the safety risks of the technology to humans and property,
20 A. REJEB ET AL.

and the absence of regulatory governance. We recommend that managers should not refrain from
investigating drones because of these hurdles. Instead, they should inspect the technical features of
drones, articulate solid business use cases, and integrate economic, social, and environmental con-
siderations into their strategic decision-making processes.

5.4. Limitations
This study has several limitations. First, the search process was guided by a set of keywords which
may not include all the search terms necessary to capture all relevant publications. Second, despite
consulting a leading database and using the backward snowballing technique, the number of studies
retrieved for the final review is relatively small. Therefore, future research may use additional and
comprehensive scholarly databases (e.g. Google Scholar) to generate insights not included here.
While the sole reliance on peer-reviewed journal articles increases the quality of the findings,
other potentially important knowledge sources like conference proceedings, books, and book chap-
ters can form the basis for new knowledge and insights. Lastly, the theoretical inferences derived
from this review need to be validated using empirical methods such as surveys and case studies.

Disclosure statement
No potential conflict of interest was reported by the authors.

Funding
The author(s) reported there is no funding associated with the work featured in this article.

ORCID
Horst Treiblmaier http://orcid.org/0000-0002-0755-5223

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