While many question whether drone deliveries will ever happen in the developed world, Keller Rinaudo is already using autonomous aircraft to deliver medical supplies to remote locations in Africa.
Few people are fortunate enough to combine their job with their passion. Keller Rinaudo is one of them. Rinaudo is CEO and cofounder of Zipline, a company that builds autonomous drones designed for delivering medical supplies to remote parts of the world.
The Harvard University-educated Rinaudo started his career as a software engineer and a professional rock climber. For a time, he built computers out of RNA and DNA to operate in human cells as molecular doctors. Then, he discovered the wonderful world of logistics and the possibilities of using new technologies to deliver medical supplies to all of the world's inhabitants, wherever they may live.
San Francisco, California-based Zipline employs 40 aerospace and software engineers and is funded by an impressive slate of investors, including Sequoia Capital, Google Ventures, Paul Allen, Jerry Yang, and Stanford University. The tech firm builds and operates 40-pound battery-powered drones that look like small airplanes. The drones are catapult-launched and fly to remote destinations to make deliveries by paper parachutes. They then return to the distribution center, where they fly into a large net or are caught by a tailhook and are quicklymade ready for further deliveries. (You can watch a video of a drone delivery on the company's website, www.flyzipline.com.)
NAME: Keller Rinaudo TITLE: Chief Executive Officer and cofounder of Zipline EDUCATION: Artium Baccalaureus (Bachelor of Arts) in economic and biotechnology from Harvard University EXPERIENCE: Chief executive officer of Zipline, where he oversees a team of 100 flight engineers and operators formerly of companies including SpaceX, Boeing, and Google based in the San Francisco Bay area and Rwanda; software engineer; professional rock climber; as a student at Harvard, he built computers out of RNA and DNA that can operate in human cells as molecular doctors RECOGNITION: Published research on RNA and DNA computers in Nature Biotechnology, becoming one of the youngest first authors in the publication's history
Zipline's first major project was partnering with the government of Rwanda to use its drones to make last-mile deliveries of blood to remote transfusing facilities. From its DCs, Zipline currently delivers about 30 percent of the national blood supply of Rwanda. The long-term vision for this project is to be able to swiftly reach each of Rwanda's 11 million citizens with any essential medical product they need, regardless of how remote they are.
Rinaudo recently sat down with CSCMP's Supply Chain Quarterly Editorial Director David Maloney to discuss this ground-breakingventure. The following is an edited version of their conversation. To watch the full interview, go to https://www.supplychainquarterly.com/video.
Q: What made you decide to zero in on health care logistics for Zipline's first drone deliveries?
Health care logistics was a really good place for us to start for a number of reasons. First of all, every delivery is potentially saving a human life. Second, health care products are obviously urgently needed, and logistics is a really important part of making sure that doctors have what they need to treat patients. Plus, the health carelogistics market itself is a huge US$7 billion market, and it's one that, while it functions well in developed countries, really doesn't function well in a lot of other parts of the world. There is a huge opportunity to both push the industry forward and also save lives.
Q: Why was Rwanda chosen?
We wanted to find a country that was small enough that we could get to national scale quickly and had a government that was making active investments in technology and health carefor its citizens. Rwanda really fit that bill. So, in partnership with Rwanda's administrative health [ministry], we've been able to turn Rwanda into the first country to achieve universal health careaccess for all. They have been able to put every single one of their citizens within a 15- to 25-minute delivery of any essential medical product.
Q: Your drones sometimes have to fly over populated areas to reach patients in remote locations. Some people have questioned the safety of drones flying over people. Is that a concern for you as well?
When we're flying, what's important to us is not just saving the life of the person that we're delivering for, but also ensuring that we're safe for the people we're flying over—the people who live in the towns and cities that we fly over on a daily basis. It's really important that these vehicles be able to operate at a similar level of reliability as general aviation aircraft.
Q: Could you describe just how the vehicles fly and make their deliveries?
The user experience of receiving a delivery from Zipline is very simple. Any doctor or health worker can use a cellphone to send a text message to place an order. When the distribution center receives that text, Zipline's team will basically pull the product from stock and load it into one of our aircraft. That aircraft is then launched from the distribution center, and it flies autonomously to the destination's GPS coordinates.
Q: So, no one is controlling it? It is all programmed electronically and by computer?
Exactly. The plane is flying itself using a flight control algorithm. It will descend to about 30 feet off the ground, and then we drop the package using a really simple paper parachute. That enables us to deliver every shipment right into the receiver's "mailbox," which is an area about the size of two parking spaces on the ground. The plane will turn around, come home, and land at the distribution center. It is ready to fly again a few minutes later.
Q: Have you had any complications with your deliveries in Rwanda?
We've made tens of thousands of deliveries, and we've never lost a vehicle. We design redundant systems into every level, whether it's the flight controls, the avionics, or the way the vehicle is mechanically engineered.
Q: And these are delivery vehicles that your company has created?
Yes. We build everything from scratch. We also have a system on board so if the vehicle can't make it back to the distribution center, it can actually use a parachute to bring itself to ground gently. So, this is how we ensure that these vehicles are 100-percent safe for the people they're flying over.
Q: How many types of those deliveries are you making a day in Rwanda?
We just agreed to an expansion of our services in Rwanda and have added a second distribution center. That will allow us to do about 200 deliveries per day countrywide.
Q: Are you looking to expand to other nations with this technology?
Yes, rural health care is a global problem. A lot of other countries are now looking at Rwanda as a role model and figuring out how they can leverage similar technology to improve their own health care systems. So, we will be launching in several other African countries in the next six months.
And here in the United States, we will soon begin making lifesaving medical deliveries in rural North Carolina. We're working through final details with the Federal Aviation Administration, the state of North Carolina, and our partners on the ground. We expect to begin deliveries there beginning in the second quarter of this year.
Q:There's been a lot of talk in the logistics industry about drones being used for deliveries. Can you see a day when that technology will be used on a regular basis for small parcel deliveries, such as e-commerce orders?
Yes. The funny thing is, it is already happening at scale today, just not in the United States. When it comes to e-commerce, we think it's inevitable that this type of technology will have a big impact on how e-commerce orders are delivered, but that's not the first place the technology is going to start. It makes more sense to start focused on lifesaving applications. Then I think after that, you'll see a lot of high-need, urgent applications that might be more industrial applications. And then in the long run, you'll start to see this technology permeate the really big parcel-delivery market that's currently served mainly by UPS and FedEx.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”