Pizza shop, delivers pizzas in the United States.
Business Problem
Delivery times can be slow. Hard to retain reliable employees.
Would like to bring up sales by selling more pizzas and utilizing faster delivery times.
Would like to lower outgoing expenses.
Technology Solution
Use drones to deliver pizzas, cutting down on delivery times and allowing for more sales. This additionally cuts down on overhead (wages, benefits, uniforms, etc).
Make the Business Case
Quantitative Impact
Annual costs of 6 delivery personnel:
Initial costs $ -
Salary $62,400 (assumes $10 per hour, 20 hrs per week)
Uniforms $120
Mileage $29,952 (assumes $0.80 per delivery, 6 deliveries per hour)
Maintenance $ -
Insurance $6000
Employee benefits $15,600 (assumes 1.25% of pay)
Total $114,072
Annual costs of 6 drones:
Initial costs $60,000 (assumed $10,000 per drone)
Salary $-
Uniforms $-
Mileage $-
Maintenance $3,000
Insurance $3,000
Employee benefits $-
Total $66,000
Savings by switching to drones: $48,072.
In addition to saving money, it is possible to take in more sales due to faster delivery times. By utilizing drones, they can take a more direct route than cars and don’t have to sit in traffic or adhere to red lights.
Total Cost of Ownership - All direct plus indirect costs associated with the implementation. There is an initial up front cost of purchasing the drones but an overall annual savings. If sales were to increase we could quickly make that money back.
Qualitative Impacts
Increased customer satisfaction, reduced delivery time, savings on employee expenses, potential for more sales.