Case overview and learning objectives: In a December 1, 2013, interview on American television program 60 Minutes, Amazon CEO Jeff Bezos announced that Amazon would soon change the future of online shopping by enabling customers to receive items within thirty minutes of ordering. This delivery service, Bezos said, would be powered by unmanned autonomous drones and could be offered as soon as 2015. The market reaction was instantaneous and positive. However, Amazon still needed to address many uncertainties before they could launch autonomous delivery services. Supply chain management has entered the Industry 4.0 era, making smart and data driven operations a reality. Looking into the future, disruptive technologies such as Artificial Intelligence (AI), Blockchain, and 3D printing will fundamentally change the way many companies operate. Using this Amazon case, we will explore how unmanned vehicle delivery gives rise to new opportunities and challenges during the ongoing waves of smart automation. Read the case and answer the following questions:

1. What are the obstacles for autonomous vehicle (AV) adoption? What are the risks involved with Amazon investing in AV delivery?

2. What impact might AV delivery have on supply chain management?