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Changes in Last Mile Delivery Platform

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It has been a strong belief that last mile delivery is the main key of e-commerce success. A strong focus on last mile delivery in e-commerce will drive delighting e-commerce service. Last mile delivery plays a major role in the online purchasing experience.

It is unfortunate, that according to Shippit, an Australia web’s shipping platform and an Australia’s largest retailers, there has been a consistent trend of carriers facing overwhelming demand, which hasn’t been met with the capacity to deliver on time to the end customer. It was mentioned that during the Black Friday Cyber Monday, almost 20% of all deliveries arrived late. Shippit found that results were even worse for express delivery, with one logistics provider delivering only 64% of their parcels in full and on time.

On the other hand, the needs of customers on e-commerce goods delivery is not only simply bringing their goods to their home. Customers need their e-commerce goods to be delivered in fast, flexible and convenient way.

Some companies have already responded this needs as a demand to create a solution, and moreover to create a new business opportunity.

It is iParcelBox, who creates a smart parcel delivery solution. With the iParcelBox, when the box is empty, the lid will open automatically – however, when there is more than one delivery, the user can be notified via an app when the parcel has arrived, and can unlock the box with a click of a button.

This solution would effectively solve the issues associated with modern day online deliveries – parcels would be protected from the weather, an early or late arrival would not result in a trip to the post office, and there would be much less demand on post couriers, who often have to make multiple trips before a parcel is successfully delivered. Moreover, this solution is universal to all couriers.

In late October 2018, Lehtipiste, the Finnish distribution and marketing company for newspapers and magazines, established the parcel locker network Pakettipiste, using SwipBox Classic parcel lockers, which currently have around 300 active locations.

Using SwipBox parcel locket, customers can easily pick up their parcels from multiple carriers, which means that they can collect several parcels at once. As more and more consumers are choosing to shop online there is increased demand for pickup points and the simplicity of the Pakettipiste network meets modern customer’s needs. Today, the Pakettipiste network consists of 1,100 SwipBox Classic parcel lockers in around 300 locations and more locations and lockers will be added in 2020.

The other solution that is now provided for convenient and flexible delivery is PUDO (Pick-up and Drop-off). This kind of solution is now offered by Parcelly, a nationwide network of 2000+ stores in the UK.

Parcelly now, provides its networks for DHL. This initiative will provide DHL Express with delivery points to enable convenient consumer collections and returns of e-commerce parcels across the region. The partnership will drive operational and cost efficiencies for DHL, increase the range of consumer delivery options, whilst also contributing positively to environmental concerns associated with delivery vehicle mileage.

From marketing perspective, creating new solution driven by customers needs is a process of Value Creation. Creating and providing values that really matter for customers.

Delivery is one of the postal business value chain. Postal Operators need to be aware that customers needs of e-commerce customers have already changed. A new delivery platform need to be implemented to create new values that are needed by customers.

Reference:

  1. https://postandparcel.info/117963/news/e-commerce/shippit-almost-20-of-cyber-weekend-deliveries-in-australia-arrived-late/
  2. https://www.parcelandpostaltechnologyinternational.com/opinion/delivering-a-solution-to-delayed-and-damaged-post.html
  3. https://postandparcel.info/117945/news/e-commerce/1-million-parcels-delivered-through-swipbox-parcel-lockers-in-finland/
  4. https://postandparcel.info/117954/news/parcel/parcelly-expands-pudo-in-the-mena-region/

Commentary by Said Haryadi

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