The impact of PUDO ('Pick-up and drop-off') has been part of an in-depth research piece by imrg. In fact, the 2018/2019 ‘Consumer Home Delivery Review’ highlighted the increasing importance of PUDOs and Click and Collect points, both solutions Parcelly has been reinventing since 2014.
The research shows that there has been a shift in the consumers’ attitudes towards Click and Collect points as they allow consumers to gain control over the flow of parcels. Consumers are able to exactly determine when, where and how their parcels will be delivered. "Knowing exactly the location has become as important as speed and costs", states the report.
Furthermore, 'delivery problems' are still a frequent challenge in the logistics industry and they continue to have negative consequences on online retailers and their brand image. In fact, many consumers channel their frustrations and anger on customer service calls and on social media, which can be very expensive for companies.
This is where PUDO locations intervene and resolve many issues for all stakeholders involved in the delivery process. PUDOs (‘Pick-up and Drop-off’) locations are physical places, such as convenience stores or supermarkets, where a parcel can be picked up when delivered and dropped off for returning. Furthermore, PUDO's represent "the most convenient and the most demanded delivery option in the UK".
For example, PUDO locations offer a local solution in case of failed deliveries, eliminating the personal travel of the consumer to remotely located parcel depots. According to Citizen Advice, 47% of online shoppers have chosen PUDO locations as "their first-choice delivery solution".
PUDOs main benefits are:
The research shows that 7 out of 10 consumers have experienced inconveniences with their parcel deliveries. Plus, a third of people had to skip work to receive their parcels.
With the help of PUDO solutions, consumers can collect their items at a time that fits their busy schedule without waiting for them all day. Given that many Parcelly locations are open 24/7, online shoppers do not need to rush.
Online shopping experience is not limited to the delivery stage, but it includes returns as well. The research paper demonstrates that 1 out of 5 consumers spend over 10 days to return items. Furthermore, "2 out of 5 shoppers do not return items faster because the available times are not convenient".
PUDO locations allow consumers to efficiently return their parcels. Parcelly's technology, for example, enables consumers to manage both parcel collection and reverse logistics. However, most importantly, the Parcelly return process does not require extra labelling but instead is based on a simple 6-digit code, Parcelly's 'non-labelled returns' process.
Research shows that 21% of shoppers aged 18-24 confirm that they take into account environmental impacts when they have to send a parcel. Clearly, home delivery is not sustainable as 1 out of 5 parcels frequently require rescheduling. Failed deliveries release a massive amount of carbon emissions in the atmosphere as they result from repeated journeys to a location.
As research shows, PUDO's are the most sustainable choice as the driver can drop off multiple parcels at one place rather than completing numerous journeys to a multitude of delivery destinations. PUDO, therefore, reduces the number of vehicles on the streets, reduces congestion and optimises urban logistics.
In conclusion, PUDO has made its mark by providing operational and cost-related efficiencies and optimises fast and efficient delivery cycles. At the same time, it does not only optimise the last-, but also the first-mile, particularly in the context of reverse logistics and e-commerce returns.
Finally, PUDO provides a measurable and positive ecological impact by reducing the environmental footprint of delivery as a whole. At Parcelly, we are proud to have added the operational efficiency of carrier-agnostic parcel processing to this equation.