One of the main problems faced by e-commerce delivery companies is the return due to delivery problems, such as a lack of people available to receive the order. This makes the transport operation more expensive for companies, since they need to make the same trip again to make at least one more attempt to deliver the order. At the same time, many customers stop shopping online precisely because they cannot be at home during business delivery hours and do not have another address as an option for delivery.
Due to these problems, some retailers are making use of new delivery alternatives, such as the option of picking up orders at the company's own physical stores (click&collect), picking up orders at convenience stores or other partner establishments of the company (pick up point ) or pick up orders from lockers around the city (alternative already commented on this blog earlier). With these initiatives, in addition to the lower chance of unsuccessful deliveries, the company is able to reduce transport costs by consolidating many orders at a single delivery point and the customer gains new delivery address alternatives, improving their sense of service level .
In the Netherlands, the startup homerr went further and in 2016 launched a service that can be defined as a social pick up point. In this service, people who usually stay at home during business hours (such as housewives, retirees and self-employed professionals) and have a reasonable space for storing products can apply to be an order delivery point for their neighbors who do not have this availability of time to wait for their orders to be delivered. Those enrolled in the program (also known as Homerrs) inform through the service's application what their time availability is for receiving packages and delivering orders to neighbors. In cases of travel or other reasons that prevent Homerr from being at home in the previously informed window of time, he just needs to notify in advance that, therefore, the delivery of packages will not occur during that period. It is also through the application that the customer chooses which location he wants to use as a delivery point and where he can track the order and receive notifications when the order arrives.
Figure 1 – Homerr application
Source: Homerr
Delivery can take place with the customer going to the house of the neighbor enrolled in the service to pick up the package or with Homerr himself going to the customer's house to make the delivery (for this last option, the final customer must pay a slightly higher fee to Homerr, which usually gets paid for incoming packets). Homerr can also be used for customer order returns.
In addition to individuals (collection points called Neighborhood Points), local establishments in the neighborhood, such as grocery stores, beauty salons, pharmacies and ice cream parlours, which generally have extended opening hours, can also apply to be pick up points (they are known as Service Points). Today the service already has more than 3.500 delivery points in the Netherlands and cooperates with the largest logistics operators in the country, such as PostNL, UPS, DHL, DPD and FedEx.
Another similar startup called Via Tim, was also created and operates in the Netherlands. The main difference between them, in addition to the operating regions (while Homerr is more focused on serving Amsterdam, ViaTim has its main focus on Rotterdam), is in the system for determining the pick up point. The Homerr delivery point can change every time the customer uses the service, as it depends on the availability of neighbors. The ViaTim point is a structural point close to the customer's home and is basically always available and accessible. In addition, ViaTim's service is not limited to delivering packages, it also offers other services, such as laundry and ironing.
Figure 2 – Dutch social pick up point startups
Source: Adapted from Silicon Canals
In addition to reducing delivery failure problems, these startups list as advantages the reduction of CO2 emitted into the atmosphere, due to the concentration of orders in fewer addresses and consequent reduction in vehicle travel, the increase in the relationship between neighbors, promoting a better environment for life in society, and opportunities to increase sales for businesses that sign up as a product collection point.
In Brazil, there are also the same problems of unsuccessful delivery due to the lack of people available during business hours to receive orders, which would be a reason for a similar service to emerge here. However, in order to bring this initiative from Europe to our country, a barrier related to the issue of insecurity would need to be overcome, especially in terms of home delivery for individuals. With the problems of violence in Brazil, it is to be expected that many people feel insecure about receiving unknown people in their home, even more so when the information is public that this person is storing many packages in their home, which may contain items of high added value. However, if service security is guaranteed (through a strict company registration, for example), this could be a valuable alternative to deal with delivery problems in risk areas, such as favelas and communities. Many companies do not deliver to certain locations in the city due to the high rate of vehicle theft in the region. If there was a neighbor who had a good relationship with the local people and who was responsible for receiving all deliveries in the area, the theft and delivery failure rates could be greatly reduced and the company could increase its scope of online operations.
And you? Do you think this service would be successful in Brazil?
References
<https://siliconcanals.com/news/startups/last-mile-startup-homerr-receives-e1m-growth-capital/>
<https://siliconcanals.com/news/startups/similar-startups-wuunder-viatim-homerr-compared/>
<https://ecommercenews.com.br/artigos/tendencias-artigos/pudo-o-futuro-do-last-mile/>
<https://www.b2ceurope.eu/social-delivery-solution-complex-last-mile/>
Fernanda Monteiro
More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.
