11-10-2021, 02:41 AM
This study explores customer value in relation to parcel lockers, a self-service tool that reshapes the delivery and returns experience in the context of e-commerce last mile delivery. Parcel lockers offer a response to retail and last mile delivery challenges provoked by the rapid growth of e-commerce worldwide. Retailers, logistics service providers, communities, and other stakeholders now face issues due to increased volumes of goods sold online. The introduction of parcel lockers to service algorithms is intended to address these issues by involving consumers in the service process. However, the existing research fails to provide knowledge about the customer’s view on this new technological solution. This study followed a focus group design and built on grounded theory to provide insights into customer value in relation to parcel lockers. These insights can contribute to both research and practice.
We consider the problem of designing a outdoor parcel locker network as a solution to the Logistics Last Mile Problem: Choosing the optimal number, locations, and sizes of parcel locekers facilities. The objective is to maximize the total profit, consisting of the revenue from customers who use the service, minus the facilities’ fixed and operational setup costs, the discounts in the delivery costs for customers who need to travel in order to collect their parcels, and the loss of potential customers who are not willing to travel for service. The problem is expressed as a 0–1 integer linear program. We show that it is equivalent to the well-known Uncapacitated Facility Location Problem. We then solve the modified problem, and apply it to an industrial-sized network.
Parcel delivery lockers are fast becoming a familiar sight in malls, stores and train stations as the boom in online shopping leads retailers and logistics providers to look for new ways to deliver orders as quickly and efficiently as possible.
Global sports retailer Decathlon is rolling out indoor parcel locker in its 1,500 stores as part of its click-to-collect service, while Amazon has had lockers in supermarkets, post offices and transport hubs across Europe for the last few years.“A good location depends on retailer customer profiles – how frequently customers order and where they live. This is where big data can provide insight into the most effective locations,” says English.
“What’s key is that customers can pick up the parcel along their usual journey, without a detour. As soon as the convenience factor is lost, electronic locker become a less effective investment and potentially also a less sustainable solution.”
There are many last mile delivery innovations in the market. So why am I focusing on refrigerator locker and collection point networks as the innovation that will transform the last mile?
Imagine this scenario 50 years ago:The parcel locker system strengthens the global last mile delivery experience. In a recent analysis on the global parcel locker market by Belgium-based International Post Corporation, parcel lockers are already heavily used in Finland, Denmark and China – with a usage rate of up to 43% Consumers prefer the storage locker method citing the 24/7 availability, ability to select delivery locations and lower delivery prices as reasons.
We consider the problem of designing a outdoor parcel locker network as a solution to the Logistics Last Mile Problem: Choosing the optimal number, locations, and sizes of parcel locekers facilities. The objective is to maximize the total profit, consisting of the revenue from customers who use the service, minus the facilities’ fixed and operational setup costs, the discounts in the delivery costs for customers who need to travel in order to collect their parcels, and the loss of potential customers who are not willing to travel for service. The problem is expressed as a 0–1 integer linear program. We show that it is equivalent to the well-known Uncapacitated Facility Location Problem. We then solve the modified problem, and apply it to an industrial-sized network.
Parcel delivery lockers are fast becoming a familiar sight in malls, stores and train stations as the boom in online shopping leads retailers and logistics providers to look for new ways to deliver orders as quickly and efficiently as possible.
Global sports retailer Decathlon is rolling out indoor parcel locker in its 1,500 stores as part of its click-to-collect service, while Amazon has had lockers in supermarkets, post offices and transport hubs across Europe for the last few years.“A good location depends on retailer customer profiles – how frequently customers order and where they live. This is where big data can provide insight into the most effective locations,” says English.
“What’s key is that customers can pick up the parcel along their usual journey, without a detour. As soon as the convenience factor is lost, electronic locker become a less effective investment and potentially also a less sustainable solution.”
There are many last mile delivery innovations in the market. So why am I focusing on refrigerator locker and collection point networks as the innovation that will transform the last mile?
Imagine this scenario 50 years ago:The parcel locker system strengthens the global last mile delivery experience. In a recent analysis on the global parcel locker market by Belgium-based International Post Corporation, parcel lockers are already heavily used in Finland, Denmark and China – with a usage rate of up to 43% Consumers prefer the storage locker method citing the 24/7 availability, ability to select delivery locations and lower delivery prices as reasons.
