HomePublicationsInsightsLockers: the retail bet to speed up deliveries

Lockers: the retail bet to speed up deliveries

In the previous post (Social pick up point: a new e-commerce delivery method), we show how the growth of e-commerce has encouraged companies that operate in the last mile to innovate to reach their consumers. This is because, in the omnichannel world, consumption increases and, consequently, the number of home delivery orders grows, challenging the efficiency and sustainability of the urban delivery system. The new possibilities aim to minimize the problems experienced by the operation, such as:

  • re-deliveries due to the absence of people to receive orders, which generates additional costs;
  • customers discouraged from buying online because they live in areas where deliveries are not made;
  • consumer dissatisfaction when their order is late.

An alternative already present in several places in the world and which has already started to walk in Brazil is the delivery model through lockers. Lockers are nothing more than cabinets of varying sizes and secured with passwords, where orders are deposited and wait until the buyer shows up to pick them up. Incidentally, lockers can also function as merchandise return points.

In the United States, this model gained strength with the giant Amazon making more than 2.800 stations available in large metropolitan areas across the country. One of the main advertisements of the model implemented by Amazon is the strategic location of the lockers in establishments such as supermarkets and convenience stores – “Places you already frequent”, according to the company's website.

How it works is simple:

  1. Before finalizing their purchase on the Amazon website, consumers choose which station they want to pick up their order from.
  2. As soon as the package is delivered, the customer receives an alert and a password that releases his order.
  3. The consumer has three days to go to the locker and withdraw his purchase. If you do not show up, the order will be returned and the purchase price will be refunded.

Figures 1 and 2 – Amazon Locker/Location of lockers in the Manhattan region – NY
Source: www.amazon.com/lockers

 

The locker pickup model offers consumers advantages that revolve around the convenience of choosing the most convenient location, whether close to their home or workplace, and the flexibility of being able to pick up their purchase or return products at any time, since stations can operate 24 hours a day. In addition, the locker becomes an option for consumers who live in areas with difficult access and who were previously not encouraged to buy online.

For the courier, the alternative presents an economic advantage, as deliveries are now consolidated and no longer diluted in individual addresses and the cases of deliveries not carried out are reduced considerably. The model also offers the delivery person the opportunity to fill the locker at night, when traffic is less intense.

In Brazil, delivery via lockers began to take its first steps in early 2018, when Via Varejo started a pilot project with four stations in São Paulo for customers of the Pontofrio, Casas Bahia and Extra brands. At the end of the year, the new service was already present in the city of Rio de Janeiro, in the neighborhoods of São Cristóvão, Jacarepaguá, Jardim Botânico, Botafogo and Barra da Tijuca, totaling six collection points. The retailer operated in partnership with the Ipiranga chain, enabling the lockers to be installed at gas stations that are open 24 hours a day.

Another important name that decided to take advantage of the versatility of this delivery model is iFood. In April 2019, the delivery platform inaugurated the iFood Box in buildings with a large concentration of people in the city of São Paulo. The boxes have thermal protection to maintain the temperature of the food and work in the same way as the Amazon locker: the customer receives a notification that his order has been delivered and goes to the station with the withdrawal code.

This was the solution found by the company to serve places with a high volume of orders in a short period, as happens in commercial buildings at lunchtime. The solution is beneficial not only for the delivery person and the customer, but also for the restaurant: by creating a more efficient chain, the consumer experience is more satisfactory and he will evaluate the establishment positively. For the future, the company plans that its lockers will also be present inside restaurants that use the platform, making it possible to serve customers through the takeaways.

For the implementation of this system in Brazil, some points deserve attention: the investment in the system is high, not only for installing the lockers but also for renting the collection points; it is possible that the capacity of the lockers is insufficient with the increase in demand, which would lead to consumer dissatisfaction; the size of the cabinets is limited, making it impossible to deliver bulky products; there is a risk of lockers being broken into, which makes it difficult to implement them in places with little security; the adoption of this model requires an adaptation period for Brazilian customers.

The advantages seem many and promise to transform the scenario of goods delivery in Brazil, which is marked by delays and customer dissatisfaction. Over time, it is expected that this alternative will also attract other sectors, such as pharmacies, jewelry stores, laundries, cosmetics stores and fashion in general.

What do you, as a consumer, think about picking up your orders from lockers?

Sources:

https://www.amazon.com/primeinsider/tips/amazon-locker-qa.html

https://epocanegocios.globo.com/Empresa/noticia/2018/01/varejo-brasileiro-comeca-usar-lockers-de-olho-em-seguranca-e-economia-no-frete.html

https://www.mundodomarketing.com.br/lancamentos/883/via-varejo-lockers-chegam-ao-rj.htmlhttps://vejasp.abril.com.br/comida-bebida/ifood-box/

https://www.mandae.com.br/blog/locker-pick-up-store-e-pick-up-point-o-que-sao-e-como-mudam-a-logistica/https://startupi.com.br/2019/04/ifood-cria-box-para-armazenamento-de-comida-para-facilitar-a-entrega/

 

Sign up and receive exclusive content and market updates

Stay informed about the latest trends and technologies in Logistics and Supply Chain

Rio de Janeiro

TV. do Ouvidor, 5, sl 1301
Centro, Rio de Janeiro - RJ
ZIP CODE: 20040-040
Phone: (21) 3445.3000

São Paulo

Alameda Santos, 200 – CJ 102
Cerqueira Cesar, Sao Paulo – SP
ZIP CODE: 01419-002
Phone: (11) 3847.1909

CNPJ: 07.639.095/0001-37 | Corporate name: ILOS/LGSC – INSTITUTO DE LOGISTICA E SUPPLY CHAIN ​​LTDA

© All rights reserved by ILOS – Developed by Design C22