Parcel lockers as the way to detour last-mile problems
The fast-growing e-commerce market has created unprecedented growth in parcel volumes.
The convenience of online shopping has raised customer expectations to an all-time high, so customers nowadays demand convenience, timeliness, proximity, and security when it comes to parcel delivery.
What is last-mile delivery?
The last mile is a concept often misunderstood and overlooked. In truth, the final mile can be more than a quarter of the delivery’s total cost. The last mile and final mile are the last part of the supply chain before the recipient lays their hands on the product they have ordered. The distance traveled during the “last mile” could be anything from a mile to 100 miles: what matters is that it’s the last moving part in the logistics process. The primary purpose of the last mile is to have the package arrive in the hands of the recipient as quickly as possible. Since speed often requires sacrifices in other aspects, the last mile has seen tremendous jumps in quality thanks to technological development.
The last mile is also the part of the supply chain the customer is most likely to see for themselves. Therefore, it’s a crucial element of customer satisfaction. If done right, the last mile can not only save the shipper money but also establish a good level of trust among their customers.
For products vulnerable to temperature changes, humidity, dryness, or light, it’s also the part where the product is most likely to be spoiled. Business Insider estimates that the last mile comprises 53% of all shipping costs.
Last-mile as a customer experience factor
Due to customers' absence at the time of the delivery, many parcels are being left under the porch, by the front door, or behind a bush. It’s probably not a surprise that temperature-sensitive products can easily be lost in such situations.
However, customer experience has become less of an advantage and more of a must nowadays, so carriers can’t ignore the elements in the last mile, which means new solutions are necessary.
New reality
In the light of the COVID-19 outbreak, shipping and carrying companies have made adjustments to their last-mile operations. They concluded that the increase in remote work, both full and part-time, also increases the need for efficient last-mile operations, so now delivery services and e-commerce will need to be prepared to step up their customer experience.
Especially the food industry should be prepared to give its best! A CapGemini study reveals that 40% of customers order groceries online weekly, and the number could be 55% before the year ends. 20% of those customers are likely to switch retailers if they don’t provide delivery services, while over half (53 percent) would even be willing to purchase a paid membership for good delivery service.
Parcel lockers becoming the staple for convenience
In cases where the recipient has no control over the pickup point or delivery time, ensuring the experience quality can become difficult.
According to research on parcel lockers and last-mile delivery, not only tech and grocery companies are eager to use parcel lockers, but clothing, fashion, and lifestyle brands as well.
The rising popularity of parcel lockers can be explained by the control consumers have over the preferred pick-up time, rather than having to wait for deliveries, adjusting with couriers, or risking the parcels being left in the wrong place. A locker in the right place allows customers to pick up their parcels without even a detour, at a time that is convenient for them and not during the working hours of the logistic company.
The delivery process and last-mile strategy
Incorporating last-mile logistics into their strategy changes everything for businesses that want to increase customer-side transparency during the last-mile delivery of an order. It’s a process that requires a combination of the available systems with an existing network.
For all the companies involved in the delivery process, the recipient is a customer of each and every one! And since logistics processes now incorporate several operators across multiple steps (from producer to shipper to carrier to the recipient via last mile deliverer), successful cooperation with the right partners may be even more important than just your processes perfectly fine-tuned.
Why choose Direct4.me Smart Parcel Spaces as your last-mile solution?
- Direct4.me Smart Parcel Spaces are autonomous machines that create an automated last-mile delivery network with real-time tracking and reliable delivery notifications for customers.
- Direct4.me Smart Parcel Spaces are flexible parcel lockers that centralize deliveries and returns to one location, reducing last-mile delivery costs and waiting times.
- Direct4.me Smart Parcel Spaces accommodate contactless parcel collection, retrieval, and drop-off process, ensuring business continuity while safeguarding the health of employees and users. Parcel delivery and collection take seconds, eliminating long queues and waiting times.
- Direct4.me Smart Parcel Spaces are carrier-agnostic, meaning a variety of delivery carriers can deliver to and pick up from them. This creates an extensive distribution network that provides convenient delivery options for logistics providers and customers.
- Direct4.me Smart Parcel Spaces can be used in any scenario: from Out-Of-Home to Home delivery solution; courier agnostic network of public parcel lockers; courier-closed network; parcel delivery infrastructure for communities; home delivery solution, and click&collect solution for eCommerce... One solution that does it all!
- Direct4.me Smart Parcel Spaces are a standalone solution, which can be used in under 10 minutes, without any integration. The solution itself though also offers easy integration with your existing systems, which can be (thanks to our dedicated professional team and resources) tailored to your specific needs and requirements.
Let's get in touch! Send us an email at sales@direct4.me.