In the world of logistics, home delivery is very inefficient and is now a thing of the past.
With e-commerce booming and the increasing pressure for parcels to arrive at final destinations on the same day, new delivery options needed to emerge: PUDO delivery.
Let’s start this article by explaining what this acronym stands for: PUDO refers to Pickup and Drop-off points.
Why is PUDO Delivery More Efficient?
The PUDO delivery concept came into place to solve a market need.
PUDO points complement the traditional door-to-door delivery courier companies have been doing for decades.
In the early days of e-commerce, home delivery met all customers’ quality and speed requirements.
Still, this scenario is changing due to the high volume couriers have to handle and all the logistics and last-mile challenges that door-to-door deliveries bring.
PUDO delivery brings many advantages for clients, retailers, and logistics providers.
Let’s start by mentioning that failed delivery attempts are removed from the process, delivery times get exponentially reduced (thanks to batch delivery), last-mile emissions and costs are reduced, and reverse logistics get more flexible.
PUDO for Reverse Logistics – Returns
Another excellent use case and reason for PUDO counters and smart lockers gaining ground is their flexibility in terms of returns.
Consumers need choices, and PUDO locations release people from feeling the pressure to drop a package at a particular store and time constraints.
PUDO Formats and Reasons for Scaling
PUDO points come in different formats. They can range from third-party facilities, like local stores or Parcel lockers.
Whether talking about local stores or Smart Lockers, the vital point is to make PUDO points accessible to everyone.
Locations should preferably be in high-transit areas that allow people to retrieve and drop off their parcels, freeing them from restricted home delivery slots and helping retailers to comply with delivery dates.
This new delivery model has seen massive growth since mid-2019 and is expected to keep growing thanks to consumers’ demand. But what is driving the growth and quick adoption of alternative last-mile methods?
Below are some of the factors backing up PUDO delivery expansion:
- The insatiable demand for consumerism and the growth of e-commerce
- People returning to office and workspaces after the lockdown during the Covid pandemic
- Teens and young adults new consumer behavior patterns: 68% of consumers between 16-24 years old in the United Kingdom are more likely to use PUDO than the overall market – Verdict
PUDO Delivery Adoption Worldwide
PUDO delivery adoption is more successful in some regions than others. Let’s explore the scenario of some countries regarding Pickup and Drop-off points.
Europe is by far the region with the most PUDO locations. According to research (carried out in 27 countries around Europe), more than 336,000 PUDO locations are available across Europe, from which 43.000 are Parcel Lockers.
Germany, France, the UK, and Italy are taking the lead in PUDO points in this region. Nonetheless, regarding PUDO delivery points density (meaning PUDO points per habitant), Finland, Slovakia, and the Czech Republic are heading the list.
The previously mentioned countries refer to PUDO points in general, but when it comes to Parcel lockers alone, Poland and Spain come first with around 11.000 and 10.000 self-service lockers, respectively.
Great news for Spain as this is an alternative method to tackle all the delivery issues this country faces.
Let’s now go to the American continent and focus on the US. Based on research, the US has approximately more than 77.000 PUDO delivery points provided by giant courier companies (FedEx, Amazon, UPS, DHL, and USPS), a pretty small number considering the massive population and size of this nation.
The good news is that in the US, the number of parcels shipped to PUDO points steadily increased by 4% between 2019-2020.
This means that Americans are adapting to Smart Lockers and new delivery methods, and as you know, courier companies always react to people’s demands.
Moving to the APAC region ( Western + Pacific Ocean), Australia seems ahead of its neighboring countries. Australia counts on diverse public and private companies offering PUDO or electronic parcel lockers, like the Australian post or Amazon.
In countries like China or Japan, the story is different. In Asian countries, home delivery is still the norm.
Statistics show that China counts on a massive lockers network (350,000 locations), and even like that, this number accounts for 30% of the 50 billion parcels that are shipped yearly, meaning that 70% of packages are delivered to homes.
Bloq.it Smart Lockers for PUDO Delivery
At Bloq.it, we strive to develop the smartest application interface that adapts to delivery companies existing workflow, letting them gain full power over the service interface with 100% adaptability.
Our solutions are already being used by several companies across the world.
If you want to discuss more on how our technology can help your business optimize delivery operations.
Reach out to one of our industry specialists and let’s find the best solution for your business, together.