You’re in the market for parcel locker software. You’ve received a quotation, most likely based on the number of service points installed. However, a software solution’s Total Cost of Ownership goes far beyond the license fee alone. Parcel locker software can either reduce your overall costs by optimizing processes or increase your costs by introducing unnecessary complexities. Understanding the broader picture is crucial to ensure total parcel delivery costs, especially labor expenses (due to the physical presence of parcel lockers), are minimized, and operations remain streamlined.

In this article, we highlight key considerations to help you control the cost of running your APM (OOH) network, especially as it grows and more service points are rolled out.

Installation and Capacity Management Costs

How long does it take to install a parcel locker (APM)? Is it 30 minutes or 8 hours? 

How much preparation can be centralized, and how much must be done on-site? 

How long will the initial configuration take? 

As OOH networks mature, locations will require larger capacities—how easy is it to add or remove columns? 

Both hardware and software processes must be optimized under this category. What tools does your service provider offer to minimize the time technicians spend at APM locations?

Remote Hardware Support

Parcel lockers are significant investments (some cost as much as a second-hand car), and downtime delays ROI. Remote tools are essential to ensure access and functionality without frequent site visits. Automated options to restore internet connectivity are also critical. 

At CollabNET, we leverage modern IoT solutions to enable safe communication with APMs, reducing site visits to an absolute minimum.

Managing Misplaced or Lost Parcels

Imagine this scenario: a customer opens a compartment and is presented with the wrong parcel. What happens next? Where is the intended parcel? 

Smart technology can significantly reduce the cost of 1st- and 2nd-line support. Misplaced, lost, or found parcels—whether from customers or couriers—must be resolved quickly. This point is especially vital for multi-carrier (open network) models. 

Your technology partner should provide tools and workflows that allow support teams to identify misplaced parcels, correct their journeys, and guide users effectively within minutes.

Intuitive and Optimized Workflows

Time is money. 

Minimize the time and resources required for couriers and support teams to use the system. Reduce the time couriers spend at APM locations. Intuitive, logical parcel storage and collection workflows ensure couriers feel confident using the system and reduce training costs. 

At CollabNET, our processes are informed by extensive experience and a track record of delivering over 30 million parcels.

Hardware Costs

You’ve found a reliable parcel locker provider and received a competitive RFQ. As your business grows, you need to expand the network—but the pricing has changed. How flexible is your technology in accommodating new hardware vendors or solutions? 

According to CollabNET market research, capital expenditure can be reduced by 5-25% by choosing different solutions tailored to your network’s needs. For instance, opt for simple configurations for indoor lockers and premium solutions for outdoor locations exposed to weather conditions.

Capacity Management for Open Networks

Open network operators must maximize parcel throughput. In mature networks, demand may exceed capacity, particularly during seasonal peaks. 

Which capacity models does your software support? 

Can you rent compartments or modules to carriers? 

Can you prioritize capacity reservations beyond FIFO models? Are there forecasting tools for capacity planning?