How smart lockers are solving last mile delivery issues

This article is brought to you by Retail Technology Review: How smart lockers are solving last mile delivery issues.

By Jeff Broth, freelance writer.

The last mile has always posed challenges for logistics providers. Quickly changing delivery conditions, a relative lack of sophisticated storage technology, and high end-user expectations combine to make last-mile deliveries tricky to execute efficiently.

Technology has long sought to solve pressing last-mile issues. From GPS monitored delivery vehicles to real-time driver communication, logistics companies have employed sophisticated tech to deliver goods to consumers on time and in ideal conditions.

However, the pandemic has given rise to new challenges in last-mile ecommerce deliveries that innovative service providers such as Mileberry are addressing. Here are the challenges and the solutions these companies are developing.

Contactless deliveries, the new norm

The COVID-19 pandemic has changed the way people think of in-person interactions. A significant portion of the population remains at risk, and contactless interaction has become essential. Furthermore, contactless interaction is viewed as more efficient since service providers can quickly deliver goods without collecting signatures and other documents that delay delivery times.

Mileberry’s smart parcel lockers are offering a solution to the contactless delivery challenge. Instead of drivers leaving packages by doorsteps, they deposit them within smart lockers and notify customers. The customer collects their package upon receiving a notification, and the contactless chain is preserved.

IoT technology powers these smart lockers. Users scan a QR code from their smartphone to unlock the locker and register their information on an app. Thus, deliveries are seamless. Customers collect packages, and drivers deliver parcels on their respective schedules, eliminating the need to coordinate delivery times individually.

Optimal delivery conditions

Last-mile service providers have traditionally struggled to deliver goods in optimal conditions. When delivering food and medicine packages, storage conditions are extremely important, since the product will be unusable if spoiled. While delivery trucks can be equipped with storage technology, there's no allowing for delivery collection times and delays en-route.

Mileberry’s smart parcel lockers offer an elegant solution to this issue. Their parcel hubs will consist of multiple lockers, each designed for specific conditions. They are planning to create cold lockers and hot lockers, designed to preserve package conditions.

Thanks to the latest condition-monitoring technology embedded within lockers, consumers can track the state of their packages and collect them according to their schedules. In turn, delivery drivers do not have to worry about packages losing their integrity when left outside a consumer's delivery address.

Mileberry’s app will help consumers locate the closest hub to them. Delivery drivers, also via the app, can track the hub a consumer wishes to receive their goods at and deposit parcels in appropriate lockers. Thus, scheduling sensitive package deliveries is simple, and delivery efficiency is maintained at all times.

Stopping package theft

Nearly 2 million packages are stolen or lost every day in the United States. That equates to a loss of $9 billion annually. Package theft is a serious issue, and the rise of eCommerce has only fueled this unfortunate trend. Typically, delivery drivers leave packages in front of delivery addresses.

They cannot ensure packages are collected by the intended recipients due to tight delivery schedules. Thus, a window opens for package thieves. There have been many solutions that aim to deter thieves, but all of them fail to eliminate the central issue: The package lies out in the open.

Smart lockers elegantly eliminate this issue. Users must sign in to their apps to validate their identity, and only then can they collect their parcels. They cannot unlock other lockers in the hub, since the app contains order and delivery-related data that matches package information to customer IDs.

Thus, package theft is close to impossible. The high standards of security smart locker hubs install also deter malicious actors from trying to physically compromise hubs.

Affordable ecommerce

As more consumers have migrated online, local small businesses have expanded their Ecommerce footprint. Ecommerce is no longer the sole domain of the likes of Amazon and Walmart. Smaller businesses such as laundry shops, bakeries, and hardware stores have listed their product catalogs online.

Affordability is a challenge, however. Delivery services are expensive and inefficient. The result is the small business pays a ton of money and absorbs all the risk of poor delivery. For instance, if a local meal subscription box's packages arrive in poor condition, the company absorbs the blame, not the delivery service.

Smart lockers eliminate both challenges by specifying a fixed delivery point for customers and delivery drivers. Thus, each party can operate on their respective schedule, increasing efficiency. The last-mile service provider can pass those savings onto the small business.

Powering the new wave of ecommerce

As ecommerce expands, ancillary services have begun innovating to meet sophisticated consumer needs. Thanks to the combination of IoT and smart locker technology, ecommerce deliveries are now simple, and consumers can rest assured their packages are safe and in optimal condition.