Implementing lockers in your delivery strategy: tips for entrepreneurs

Managing deliveries can be a complex task, especially for businesses with a high volume of shipments or customers located in remote areas. One solution that can streamline your delivery process and improve customer satisfaction is the implementation of lockers.

Lockers offer a convenient and secure way for customers to receive their packages, eliminating the need for someone to be home to accept delivery. By incorporating lockers into your delivery strategy, you can reduce delivery costs, improve customer satisfaction, and enhance the overall efficiency of your operations.

In this article, we will explore the benefits of implementing lockers in your delivery strategy and provide practical tips for entrepreneurs to get started.

Do parcel lockers reduce delivery time?

By offering parcel lockers as a delivery option, you can provide your customers with greater flexibility and convenience. You might be surprised to learn that delivery costs can account for up to 28% of total expenses when customers do not receive their goods successfully. However, the implementation of parcel lockers can significantly reduce these costs. This is because parcel lockers allow for secure, 24/7 access, which dramatically decreases the instances of unsuccessful deliveries. [1] 

Research has shown reductions in out-of-home delivery time and curbside vehicle dwell time. This translates to faster deliveries and less wasted time. In fact, the utilisation of parcel lockers can lead to improved operational efficiency and increased customer satisfaction. [2]

Different types of lockers available today

Today’s market offers a diverse range of lockers types designed to meet various needs.

Traditional lockers

There are numerous types of traditional lockers that you may come across in various environments:

• key lockers – employ a simple key and lock mechanism that is easy to use. However, they are vulnerable to lost keys and lock picking;
• combination lockers – require the user to remember a specific sequence of numbers or letters. While they eliminate the risk of lost keys, they introduce the possibility of forgotten combinations;
• padlocks – can be used interchangeably on different lockers, offering flexibility. But, they too are susceptible to theft and loss;
• coin-operated lockers – commonly found in public places, work on a pay-per-use basis. While they are cost-effective, the increasing shift towards a cashless society makes them less convenient.

Despite these challenges, traditional lockers have served us well for many years. But times are changing, and so are customers needs and expectations. The shift towards modern, digital locker systems is now becoming more apparent.

Smart lockers

The future of locker technology is here and it’s called Smart Lockers. These innovative storage solutions offer a seamless integration with other systems and are often connected to a central management system. In addition to providing secure storage, Smart Lockers are also integrated with other essential systems such as security and access control within a building.

Under the umbrella of smart lockers, you find the:

1. Digital Lockers. They are designed to eliminate the need for keys, padlocks, or manual tumblers. Instead, users can conveniently lock and unlock the locker by entering an alphanumeric PIN or scanning a QR code. The advantage of digital lockers is that they are cost-effective. 
2. RFID/Smartcard Lockers. These lockers are operated using a key fob or by waving a smart access card past a reader. This makes them a popular choice in places like college campuses. However, to fully utilize these lockers, they need to be integrated with an existing access control system. When combined with mobile credentials, their efficiency is significantly enhanced.

Benefits of using locker management systems

The use of locker management systems presents a myriad of benefits to businesses and their customers alike. When implemented correctly, these systems can revolutionize the delivery process, ensuring a secure, efficient, and convenient service.

Secure Storage, simplified

It does so by providing a centralized management platform that allows for the regulation of locker permissions and credentials. This means you have complete control over who can access which lockers, and when.

A notable feature of smart lockers is the ability to eliminate the need for physical keys, padlocks, or combination locks. These traditional methods are not only inconvenient but also pose significant security risks. With the digital nature of smart lockers, you can ensure that your packages are stored securely.

Boost productivity and reduce costs with smart lockers

One of the key strengths of smart lockers is their ability to seamlessly integrate with existing systems. With the use of RFID access cards or QR codes delivered by smartphones, managing lockers becomes a hassle-free process. This integration not only provides a high level of convenience but also boosts security and efficiency.

Every e-commerce business should consider shipping insurance, and smart lockers can play a significant role here. With their enhanced security features, smart lockers can reduce the risk of lost or stolen goods, potentially lowering insurance costs.

Locker management: a greener solution

The rise of e-commerce has led to a significant increase in the volume of deliveries, putting a strain on traditional delivery methods. Lockers offer a sustainable solution to this challenge by reducing the environmental impact of last-mile deliveries. 

Here are some ways lockers contribute to sustainability:

• fewer delivery attempts: lockers eliminate the need for multiple delivery attempts when customers are not home, reducing the distance traveled by delivery vehicles and consequently lowering carbon emissions;
• donsolidated deliveries: lockers can be used to consolidate deliveries from multiple carriers, reducing the number of vehicles on the road;
• fewer missed deliveries: lockers minimize the number of packages returned to sender due to unsuccessful deliveries, reducing packaging waste and the associated disposal costs;
• reduced packaging: lockers can be used to store items for extended periods, allowing for bulk shipments and reducing the need for individual packaging;
• optimized delivery routes: by using lockers, delivery companies can optimize their delivery routes, reducing fuel consumption and vehicle wear and tear.

Productivity and time-saving

Lockers offer significant benefits in terms of productivity and time-saving for both businesses and customers. By implementing lockers in your delivery strategy, you can:

1. Reduce delivery times – Lockers eliminate the need for multiple delivery attempts when customers are not home, speeding up the delivery process.
2. Optimize delivery routes – By using lockers, delivery companies can consolidate deliveries and optimize their routes, reducing travel time and fuel consumption.
3. Enhance Customer Satisfaction – Lockers provide customers with the flexibility to pick up their packages at a time that suits them, reducing wait times and improving overall satisfaction.
4. Reduced missed deliveries – Lockers minimize the number of missed deliveries, eliminating the frustration of customers having to reschedule deliveries or return packages.
5. Reduce administrative overhead – Lockers can help reduce administrative tasks such as scheduling redeliveries and handling package returns.

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Types of locker delivery

The two main types of delivery are express and standard. Express delivery services, such as those provided by DHL, are premium offerings that guarantee next-day delivery. They are fast, reliable, and perfect for time-sensitive deliveries. Standard delivery, on the other hand, usually takes 2-3 days and is a more cost-effective option.

Locker or post office delivery systems are particularly popular in Western countries. One reason for this is that offering only home delivery when shipping internationally can lead to higher return rates. Locker delivery systems can help to tackle this issue, reducing return rates and providing a more flexible solution for customers.

Innoship: your solution for global shipping

Innoship is designed to automate and simplify your shipping operations. Carrier eligibility, a key feature of Innoship, streamlines the process of identifying the most suitable carriers for each order. This is achieved by considering factors such as the specifics of the order, the pick-up location, the destination, and your preferences. The result is a seamless and efficient shipping operation that ensures the best possible delivery options.

With Innoship you will engage with clients at cart checkout by offering them multiple, detailed delivery options via one single API that aggregate over 350,000 delivery lockers/PUDOS from over 200 carriers. Find out more at https://innoship.com/en/benefits/multiple-delivery-options/ 

Shipping to non-EU countries can be fraught with complexities, but Innoship tackles this issue head-on. The platform enables you to generate air waybills (AWBs) for packages destined for these countries, thus eliminating potential hurdles or confusion in dealing with international shipping. 

Recognizing the importance of flexibility in delivery, Innoship provides multiple delivery options at the point of check-out. Whether it’s same day delivery, next day delivery, or the use of lockers or pick-up and drop-off (PuDo) points, these options enhance customer satisfaction and can potentially boost your conversion rate.

Sources

[1] Yu, Vincent F, et al. “A Simulated Annealing Algorithm for the Vehicle Routing Problem with Parcel Lockers.” IEEE Access, vol. 10, 1 Jan. 2022, pp. 20764–20782, ieeexplore.ieee.org/document/9714328, https://doi.org/10.1109/access.2022.3152062. Accessed 30 Aug. 2024.
[2] Ranjbari, Andisheh, et al. “Do Parcel Lockers Reduce Delivery Times? Evidence from the Field.” Transportation Research Part E: Logistics and Transportation Review, vol. 172, Apr. 2023, p. 103070, https://doi.org/10.1016/j.tre.2023.103070.