The Future of PUDO Services
15th November 2023.
Here I talk about my thoughts on PUDO in 2023, in an ever changing logistics landscape.
In the 2020’s where we have a society dominated by Internet sales, e-commerce and fluid technological movement, along side the desire for a just in time sustainable future, the last-mile delivery space has become a challenge and therefore become a focus point for large, small and enterprise organisations seeking to enhance customer centricity and streamline their logistics operations.
Pick-up and drop-off (hereafter, PUDO) services have emerged as a solution to address these challenges. In the United Kingdom, PUDO services are gaining momentum, offering a range of benefits for both consumers and retailers. This was recently seen when I visited the Post and Parcel EXPO in Amsterdam, NL; where there were over 40 vendors displaying the technology and hardware that can be used for PUDO, this was markedly up on the previous years exhibitors and there was a lot of clamour and talk around these solutions.
Slipper Distance
Slipper Distance - slipper distance is defined as the 'the distance you would walk in your slippers' this is a current challenge that parcel delivery companies, especially in the last mile are trying to fix. Slipper distance is typically defined as within 400m, so the challenge is to put a pickup point within this distance.
Post and Parcel companies are very happy to use this type of model as a single drop can 'deliver' up to 100 deliveries per locker, if you compare that to 100 deliveries at door step level this is equal to 50% of a driver shift. The inverse also applies where up to 100 collections can also be fulfilled per locker stop, that allows drivers to be more productive.
This obviously has a beneficial from a financial perspective for post and parcel organisations, that has lead to a boom in the supply these lockers in the market space. Reducing the cost per shipment has a tangible benefit to both the profit of the postal / parcel organisation as well as the benefit to the end customer who pays less for their collection and delivery.
It also enables a C2C marketplace growth with companies like Vinted whom demonstrated a 51% profit increase last year, this diversifies demand in a market place that is saturated and suffering from a post COVID19 pandemic slump.
Location
There is also the ability to deploy these lockers in pretty much any location, with some of the vendors even offering mobile parcel lockers to deliver to where the demand is on that particular day. White label lockers have been deployed in office spaces, train stations and apartment blocks to enable the power of the slipper distance!
With the market place growing to an estimated £1.8bn (\\\$2.1bn, €2.06bn) there is a fantastic opportunity to harness this market with an optimised solution for parcel lockers, with regulation now enabling growth of the locker network world wide, this also has a sustainable benefit for organisations as they look to decarbonise the final mile. With the adoption of the ever more affordable RFID and NFC technologies at all of our finger tips is a growing trend in our market place, highlighted at Post+Parcel Expo 23.
The last mile of the delivery process is often the most complex and cost intense. PUDO services, by design, focus on mitigating these challenges. With strategically slipper distance located pick-up points across the world, customers can conveniently collect their packages at a time that suits them, eliminating the frustrations associated with missed deliveries and the need to rearrange drop-offs.
Customer flexibility & Centricity
PUDO services offer consumers the flexibility to choose their location and time that fits their schedule for parcel collection. Whether it's a local store, a dedicated PUDO hardware location, or even a apartment locker system, the options are multiple and varied. This flexibility not only enhances customer centricity once more but also reduces the carbon footprint associated with multiple delivery attempts and increases sustainability and capacity within a network.
Integration
For retailers and ecommerce vendors, integrating PUDO services can lead to big cost reductions. Reducing the number of bad delivery attempts and sub optimizing delivery routes can significantly cut down operational expenses. Additionally, consolidating deliveries to designated pick-up points promotes sustainability by minimizing CO2, along with Scope 1 and 3 emissions and congestion caused by multiple individual delivery attempts.
The success of PUDO services relies on a continuing collaboration between retailers, delivery companies, and PUDO service providers. Many retailers in are recognizing the benefits of collaborating with established PUDO networks. This collaborative approach fosters a more efficient and interconnected delivery ecosystem, benefiting all stakeholders involved.
Experiences
I would like to hear your thoughts on how we use this to our advantage in the market place; and leverage PUDO as a tool for good within our product portfolio; would like to hear you experiences on PUDO in your geography as well
All the best
AB
Take a look below at some of the examples of PUDO technology on display @ Post & Parcel 2023
