51% online Consumers saying they prefer shopping on the internet instead of in a store. This has led to an increase in parcel delivery which saw nearly 2.5 billion packages delivered to households in Britain. UK in 2017-18, increasing by 11% over last year.
In the majority of cases the parcels successfully delivered. However, about 40 million delivery attempts to consumers do not succeed on the first attempt. And a large majority of shoppers online complain of delivery issues. This is a major issue for consumers as they lose out on deliveries. It makes the system more expensive since parcel delivery companies must wait longer to deliver the parcel. And may have to return the parcel again to deliver.
One solution is by promoting the utilization of pick up or drop-off (PUDO) locations. The PUDO points is an outside space typically one of the parcel lockers. A convenience store, or a designated parcel shops, which allows customers to send and receive parcels.
What is the PUDOs?
A local retail store that provides parcel pickup and drop off services within a larger collection that includes PUDO points is referred to as an area for pickup and drop-off. This allows parcels to be picked-up or dropped off at places that a trusted member of the network picks them up. Convenience stores, locker banks as well as parcel stores are great instances that are PUDOs locations.
The increased number of home deliveries following the the COVID-19 pandemic has placed more pressure on stocks as well as delivery capacities. PUDOs allow the delivery slots at home for people who need it. They permit retailers who are under pressure to let customers use online shopping with no long waiting times. Nowadays, many retailers are working to create places for PUDOs such as Buy Online Pick Up In Store pick-up points.
What problems does PUDOs help you with?
Yet, PUDO points are not utilized to their full potential. A lot of people have never been aware of them, not been offered the chance to make use of them by retailers, or have no access to the points.
We’ll try to tackle these issues during the upcoming year by looking to:
Enhance the promotion of PUDOs points for delivery and returns from online retailers, and incorporate PUDO points in our continuing consumer education programs
Continue to explore ways to resolve access issues related to the exclusive relationship that exists with parcel companies, PUDO operators and retailers
Enhance PUDO points accessibility to handicapped consumers.
How can driver shortages increase PUDO
The shortage of drivers is becoming more of a problem for delivery businesses. While at the same time parcel volumes are growing year-on-year.
This means that many drivers will have to work more hours. It could even lead some drivers to stop driving altogether.
The shortage of drivers isn’t the only problem. Delivery companies must also spend a lot of money on the onboarding process due to driver turnover.
- Driver shortages will continue to be an issue.
- Onboarding is crucial particularly for recruiting people who can be flexible.
- Deliveries of parcels are growing year-on year However, the delivery times are unpredictable for the near-term.
- PUDO helps ease the shortage of drivers by decreasing the amount of deliveries made to homes.
- Transferring load to PUDOs points and lockers has been and will continue to be – an essential method to address problems with capacity.
Racing Toward PUDO
PUDO is a great advantage for brick and mortar stores as they’ll experience an increase in the number of customers and sales. It’s been believed that one-third of PUDOs users will make an additional purchase when they’re buying their products. There are two main trends that are causing retailers to adopt PUDO:
- The price of home delivery is a major expense. As the cost of gas is increasing, the price is rapidly increasing. It is possible to reduce the additional cost for couriers associated with residential delivery will be the key to retailers saving money.
- The couriers are under pressure to deliver a limited amount of goods during peak seasons. Couriers are now putting limits on the volume of deliveries residential customers can make from retail stores. For instance, in October 2021 the U.S. Postal Service announced that it will reduce its delivery times by 30% between October. 3 through December. 26. Its U.S. slowdown notification was an alert for the holidays ahead of time because the previous year, they experienced an unprecedented increase of 25% in the volume of packages.
PUDO services enable retailers to efficiently manage its inventory while offering a superior customer experience for customers who stop by the shop to get their goods.