Drones are coming to a city near you. First Amazon, now Walmart has applied for a license to test drones so that they can operate commercially. Due to increasing online orders, Walmart is seeking to streamline the order fulfillment process. Drones can help Walmart deliver orders faster, take stock of inventory, assist with its grocery pick-up service, and improve the efficiency of its distribution system.

Commercial drones are not currently legal, but the FAA is expected to finalize regulations within the next year. Amazon says it will be ready when that time comes, and Walmart is working to follow suit, depending on testing and the regulations.

Will the FAA establish rules for the widespread commercial use of drones or will retailers wait in limbo? What other implications do drones have on creating efficiencies (and risks) in supply chains? Could drones help Walmart improve expected earnings?

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