Imagine unlocking the formula to reduce last-mile delivery costs by up to 53% while increasing customer satisfaction and cutting carbon emissions.
Yes, it’s possible.
First, think back to pre-pandemic times. Canada was lagging the world in e-commerce adoption. The pandemic changed all of that. Out of necessity, Canadians turned to online shopping, and e-commerce usage exploded nationwide.
Today, more than ever, e-commerce is part of the fabric of most of our lives.
While this is a great, convenient solution for consumers, it poses logistics and operational cost challenges for retailers and couriers. You must keep up with demand and maintain and deliver great customer experiences.
Retailers and couriers are also feeling pressure from the operations side. Consider the following variables that are increasing pressures on the bottom line:
Labour Shortages: There’s a labour shortage across most industries, and parcel delivery is no exception. Finding available talent in this market is becoming increasingly difficult.
Labour Costs: Higher wages often entice people to join a company, impacting the bottom line. The minimum wage recently increased, directly impacting profitability by elevating overhead expenses and potentially leading to consumer price increases.
Scheduling: Most companies are back in the office full-time now. This means increased congestion on the roads, making delivery times challenging. Also, one-off deliveries from online retailers mean your trucks are deployed multiple times, which is inefficient.
Emissions Goals: Canada has set aggressive emission goals, directly challenging most companies to reduce their carbon footprint by 2030. Companies are making significant changes to their operations now to be ready. Consumers are making choices based on sustainability efforts, and companies that aren’t stepping up are being left behind.
Operating costs: Do we need to mention the price of gas? The carbon tax increased on April 1 this year, making it painful to go to the pumps. Until a more cost-effective solution is found, switching a fleet to electric is prohibitive; even hybrid electric vehicles require significant capital investment.
Customer Expectations: It’s no secret that consumers want more for less. They’re looking for more convenience, greater security, and lower costs. Passing operations costs onto the consumer won’t work for long; there’s always a more affordable option.
So, how can a retailer or courier company reduce operations costs and improve the customer experience?
Consolidate deliveries to parcel lockers.
Smart parcel Lockers streamline logistics by allowing consumers to receive and send packages at their convenience through a digital, user-friendly interface while providing real-time tracking and monitoring capabilities for both senders and recipients. It’s like having your own mini post office right around the corner. They save time and ensure parcels are safe until a customer is ready to grab them.
One Stop: Your delivery team won’t need to visit customer homes repeatedly if they’re not there to accept the delivery the first time. With parcels safe and secure in delivery lockers, consumers won’t feel pressure to be home when their parcel arrives.
Time in Motion: Centralizing deliveries requires less time than home deliveries. They make one stop for the neighbourhood and unload parcels into the lockers. They won’t need to park and drop off individual packages home by home. Reducing time in motion translates into lower pressures on your workforce.
Customer Experience: Customers are happier and more loyal when they can trust that their parcels are safe, secure, and conveniently available.
Smart parcel lockers can improve your bottom line and the customer experience. Penguin PickUp is a leading supplier of parcel lockers in Canada, with locations in urban centres in Quebec, Ontario, and British Columbia.
