Neopost's parcel locker technology ensures the simple and secure delivery and retrieval of packages and online orders, a full solution with unique and powerful centralized back-end functionalities.
“By building a strong value proposition in Parcel Lockers solutions for all the verticals we address, we want Neopost to become a leader in every country we do business in.”
3 questions to Daniel Malouf, Chief Solution Officer Parcel Locker Solutions
What is your view on the parcel delivery market?
Daniel Malouf: Worldwide parcel volume has literally been booming over past years. It remains on an extremely dynamic trend, the largest driver of this growth being e-commerce. Some key figures: the market grew from 44 billion packages delivered in 2014 to 74 billion in 2017, and it is now expected to exceed 100 billion in 2020. The largest markets are China, the United States, Japan and, in Europe, Germany, UK and France.
E-commerce incredible expansion has made last mile delivery increasingly challenging. Today, most of these parcels are still being delivered by carriers and drivers directly to the end-user, at home or by the use of intermediate locations, such as retail stores or pick up points. While customers have significantly adopted online shopping and raised their expectations for more consumer-centric shipping services such as hyperlocal (1-3 hours), same-day and weekend or after-hours delivery, carriers and pick up points struggle with accrued workload organization and pressure on the workforce, increasing costs and jeopardizing quality of service. Today, the only mature automated solution being able to solve all of these issues at once is the Parcel Locker.
How do Parcel Lockers address these challenges?
DM: A parcel locker is an automated electronic locker system that ensures the simple and secure delivery and retrieval of packages and online orders. Unique and secure pickup codes allow to log into the terminal and collect a package in less than 30 seconds, at the most convenient time.
This solution brings true value for the modern consumer, used to buying online at any time and willing to find the same convenience when picking up its goods after purchase. It is a reliable and easy to use technology ensuring broad accessibility, 24/7 availability as well as confidentiality, which is another major requirement from end-users today. More specifically, we have identified five verticals where this solution can address pain points and challenges, and benefits vary by customer type.
At corporations -offices or universities for instance- and residential -home or condominiums- locations, Parcel Lockers simplify management of incoming packages and bring new services that are very much appreciated by the residents, students and employees. For carriers, the added value is tangible: a fully managed Parcel Locker solution reduces missed deliveries and allows to consolidate package deliveries in a single point.
For e-retailers, Parcel Lockers can replace physical locations they don't have, bringing their products closer to the consumer and providing an augmented customer experience, while reducing costs and facilitating returns. And, finally, for physical retailers, Parcel Lockers are the perfect fit for click-and-collect, a buy online and pickup in store service that is currently expanding in all countries. Click and collect drives traffic to the store and creates cross-selling opportunities.
What are Neopost's activities and perspectives in this business?
DM: To start with, it is a nascent market, one of its particularities being that operating parcel lockers is a local business. We already acquired a significant experience in two vertical segments, carriers and retail, and in two major countries, France and Japan. We have thus proven our ability to develop, manage and operate a network of parcel lockers, as well as to choose the right business model by country and by segment. With more than 4,400 units in the field, we manage today the third worldwide installed base, and we are the undisputable leaders in Japan.
We are now accelerating our development, and have determined three main pillars to support this ambition. First of all, we want to grow fast in North America where the potential is huge. Thanks to the recent acquisition of Parcel Pending, the market leader for the residential segment with an installed base of 2,500 units, we have made a strong entry in this market. It's a sizeable platform to address new verticals and we already see strong synergies with Neopost in the United States. Our ambition is to build a true market leadership in the country.
The second pillar is to continue to develop our existing verticals in Japan and France, but also in our other major countries.
The third pillar is to continue expanding our product portfolio. Our ambition is to address all market needs, from low end to high end, in the verticals we are targeting. In the retail segment for instance, this means covering from convenience stores to hypermarkets. And for the residential segment, we aim at serving the needs from individual homes to 200-plus apartments. By building a strong value proposition in Parcel Lockers solutions, we want Neopost to become a strong leader in every country we do business in.
with partners and customers
Parcel lockers are a winning deal in Retail
The automated parcel locker system helps organize, simplify and secure parcels being delivered and collected in retail stores. It also facilitates the day-to-day parcel management by the employees in charge of the pickup point. In the end, both customer and employee experience are improved.