Posti, the Finnish postal operator, is rapidly expanding its parcel locker network, aiming to deliver more parcels to lockers rather than residential addresses. Ian Kerr (Postal Hub Podcast) and Marek Różycki (Last Mile Experts) analyze how Posti is combining network density and fast delivery to enhance customer experience.
Posti is set to establish the densest network of automated parcel machines (APMs) in Europe, with 500 new lockers coming into service by the end of 2019, bringing the total to 1,500. Currently, there is one APM for every 5,000 inhabitants, but by the end of the year, this will improve to one per 4,000 residents. This means more customers will have easy access to parcel lockers, making them a more attractive and convenient delivery option.
While this network is carrier-specific, Posti’s rapid expansion underscores the importance of proximity for the success of a parcel locker network.
Increasing Volumes and Speedy Delivery
Parcel volumes at Posti’s lockers are on the rise, with deliveries increasing by 22% in 2018 compared to the previous year. This upward trend is expected to continue as more lockers are added to the network. Speed is also a key element of Posti’s strategy, as first-time deliveries to parcel lockers are nearly 100% successful, unlike home deliveries, which often require redelivery attempts.
In Turku, Finland, Posti has introduced same-day e-commerce deliveries through its Fast Track service, following a successful rollout in Helsinki in 2018. Customers can receive home deliveries between 6:00 pm and 8:00 pm, or collect parcels from lockers in supermarkets and shopping centers by 7:00 pm, available Monday through Saturday.
Posti is also piloting a new digital system in its sorting centers and terminals to enhance parcel distribution efficiency. This system automates parcel allocation to lockers or pick-up points based on availability and proximity to the customer, reducing travel time for consumers. Additionally, customers can use the OmaPosti app to select their preferred pick-up point, putting them in control of the delivery process.
Expanding Out-of-Home Delivery Options
Posti’s parcel locker network is supported by its extensive post office network. Customers can choose to have their e-commerce purchases delivered directly to a post office without attempting home delivery, offering greater convenience and control.
In one suburban area where Posti couldn’t secure a partner to operate a post office, they introduced automated post office services, including parcel lockers, ensuring continued service to the community while providing a modern parcel delivery solution.
A Win for the Customer
Amid declining letter volumes, Posti is focusing on expanding out-of-home delivery options, particularly through its parcel locker network. This approach not only enhances operational efficiency but also improves customer satisfaction by offering greater flexibility, speed, and cost-effectiveness in delivery options. Ultimately, customers benefit from a more convenient and tailored delivery experience.
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