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.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”