🖈 Standard / 👨 by Shipyaari / 📅 July 3rd, 2017 / 👨 CA Nayan Ratandhayara & Vishal Totla
How Parcel Lockers are changing the Courier-Express-Parcel (CEP) Market?
The logistics industry plays a significant role in the development of the country’s economy. India’s logistics sector has a long way to go in terms of infrastructural development so as to reach the farthest corners. In the meanwhile, the logistics companies are striving to better the situation in every way they can. The ultimate aim of their efforts is to increase the operating efficiency, cut down the cost, and ensure customer satisfaction, all at once. Parcel lockers are one such endeavor by the logistics companies that is on its way to revolutionize the Courier-Express-Parcel (CEP) market.
Parcel lockers are equipment installed at public places such as malls, community centers, bus stations, post offices. They are used as drop locations for packages by the crowd-shippers. They are used for time-specific last mile deliveries that may be B2B or B2C. Let’s see how parcel lockers are benefiting the entities in the CEP market.
Empowering the Consumers –
How many times have you been unavailable to receive the items that you had ordered online? Few times, if not a lot. Rescheduling a delivery is as much a pain for you as it is for the logistics company. It is an inevitable problem and through no one’s fault, you wouldn’t get your package in time. If you had an option to visit a parcel locker and collect your package at the time of your convenience, wouldn’t it be nicer? You would use the one-time-password issued by the logistics partner of the e-commerce store you shopped from, which you can use to access the contents of the locker. You could pay by debit card or credit card, and collect your package discretely and securely.
Saves on Cost
There are hundreds of customers in a city on any given day that might not be available to receive their package. Rescheduling the delivery costs the logistics company a lot of money, causing their bottom-line to diminish. Instead of door-to-door delivery, they opt for delivering the item to the nearest parcel lockers. There is no question of missed delivery and scope for rescheduling, which helps the logistics company bring down the cost of their operations.
Enhances Brand Visibility
The presence of parcel lockers in public places will increase the brand visibility of the logistics company. They would attract the attention of the general public towards their existence, sparking a curiosity of the public. Initially, the curiosity would cause the people to try the parcel locker service. Once they experience the streamlined process for themselves, the convenience would be the driving factor in the future.
As more and more logistics companies enter the parcel locker segment, the competition is bound to increase. Consequently, the companies would deploy strategic, competitive pricing. The ultimate benefit would be passed on to the customers who save on hefty delivery charges. Also, it helps the logistics companies examine the competition and strategize accordingly.
Economies of scale are an important function of the parcel lockers system. It is an established fact that higher volumes culminate into greater savings in terms of both monetary and non-monetary gains. The logistics companies are saving on fuel when it switches from the conventional delivery methods to the new and innovative parcel lockers. This means lesser emission and a cleaner environment.
We suppose this article gave you an insight into the most important benefits of the parcel locker system. It is a noteworthy fact that it benefits every entity participant in the supply chain, including the final consumer. The CEP market is soon going to witness a massive revolution once the parcel lockers gain popularity.