You are on the market for parcel locker software. You received a quotation based, most likely, on a number of service points installed. A software solution’s Total Cost of Ownership extends far beyond mere license fee. Like any software, parcel locker software can either work for you by reducing your overall cost, or it can work against you by complicating related processes and therefore increasing your cost base. Understanding the broader picture is crucial for potential buyers to ensure total parcel delivery costs, especially labor costs (due to the physical existence of parcel lockers) are optimized, and unnecessary complexities avoided.
In this short article we will highlight some specific key points which require your attention to ensure the cost of running your APM (OOH) network will be under control. These points are especially pivotal as your network grows and extensive amounts of service points are being rolled out.
- Installation and capacity management cost. How long does it take to install a parcel locker (APM)? Does it take half an hour or 8 hours? How much APM preparation can be done centrally, and how much has to be done centrally on site? How long will the initial APM configuration take? As the OOH culture matures, locations will inevitably get larger and require more capacity – how easy is it to add (or remove) columns? Under this paragraph both hardware and software related processes must be considered and optimized. What tools does your service provider provide for technicians to spend less time @APM location?
- Remote hardware support – parcel lockers as infrastructure are expensive (you could buy a second-hand car for the price of some APM) and it’s not helping to return your investment by being offline. Much needed are the remote tools to ensure access to APM without a need to visit the locations. Similarly, automated options to restore internet connection are vital. @CollabNET we use modern IoT solutions, amongst other tools, which ensure safe communication to APM and enable us to bring site visits to absolute minimum.
- One of your customers was picking up a parcel but after opening the compartment the wrong parcel was presented to them. What do you do? Where is the actual parcel intended for your customer? Smart technology will significantly reduce the cost of your 1st and 2nd line support. Misplaced/lost/found parcels from customers or couriers. We can’t stress this point enough, especially for multi-carrier (open network) business models. Your technology partner must provide a set of tools and workflows designed for support teams to quickly identify misplaced parcels, correct their “journey” and guide customers and couriers on site in a matter of minutes.
- Intuitive and optimized workflow (closely related to previous point). Time is money. Limit the time and resources needed for couriers and support teams to use the system. Limit the time your couriers spend @APM location. Intuitive, logical parcel storage and collection processes ensure couriers are not “afraid” using APM and minimize training cost. @CollabNET our processes have been “built” based on extensive experience and a delivery of at least 30 million parcels.
- Cost of hardware. You found a reliable parcel locker provider. You send out an RFQ and get a competitive proposal. Your business grows and you need to expand the network. This time the pricing has changed. What do you do? Does your technology allow you to introduce new hardware vendors/solutions to your network? As per CollabNET market research for various projects it is possible to reduce capital expenditure on average by 5-25% by choosing different solutions depending on your network needs. As an example, you can choose a simple configuration for indoor lockers and a more premium solution which must withstand local weather conditions.
- Open network operators need to maximize parcel throughput. In mature networks and markets the demand might top available capacity especially during seasonal peaks. Which capacity models does your parcel locker software support? Are you able to rent compartments or entire modules to your carriers? Can you prioritize capacity reservations or is only the FIFO model supported? Are there any volume forecasting tools available for capacity planning?
Hope you found the above useful. Do you have any additional thoughts on how to reduce or optimize parcel delivery cost in a parcel locker network? Share your thoughts with us in the comments.
If you are in the market for parcel locker software, feel free to reach out to us to learn how CollabNET experience and technology will work for you, help to optimize infrastructure, and parcel delivery costs, and help to tackle future challenges together as a team.