KTSM Technologies

Category: On a mission

  • The Power of Agnostic Parcel Lockers and Smart Software

    The Power of Agnostic Parcel Lockers and Smart Software

    E-commerce has experienced insane growth, and this trend shows no signs of slowing down. Yet, with the boost in e-commerce comes the challenge of handling a truckload of packages. As a result, the traditional last-mile delivery system, involving delivery vans and couriers, has been strained to its limits. In major European cities, congested traffic, parking difficulties, and strict environmental regulations further complicate the timely delivery of packages and the current method of doing so. Cutting to the chase, the traditional way we deliver cannot continue as is. Luckily, new innovations such as agnostic parcel lockers made it to market. But what makes them succeed?

    Delivery Efficiency through Agnostic Parcel Lockers

    Agnostic parcel lockers entered the stage as an effective solution to optimize the last-mile delivery process in Europe. Lockers are designed to accept parcels from any courier, irrespective of the courier company. Their versatility and accessibility (aka 24/7) make them a practical alternative to traditional delivery methods, especially in urban areas with high population densities.

    The key advantage of agnostic parcel lockers is their ability to integrate multiple couriers into a single delivery point. With a unified platform, customers can receive packages from different e-commerce platforms and courier services in a single locker. This integration streamlines the delivery process, reducing the number of stops for delivery personnel and minimizing overall delivery time. The logic is simple: four orders could either be four visits to different PUDOs or just one to an agnostic locker. Agnostic lockers respect our complex lives, understanding that we have better things to do than wait around for our parcels to arrive. Placed at convenient spots like grocery stores and malls, these metal or wood wonders make your package pickup a smooth part of your shopping spree. Especially in mature markets, like Finland, where lockers are “normal,” customers prefer picking up everything at one location. To them, it does not matter whether there is an agnostic locker nearby or a PUDO that accepts multiple courier parcels. What matters is convenience, control and, for some, the environment. We expect that with increasing consumer awareness, similar behaviour will show across the globe.

    Lastly, and one of the reasons why we focus our software platform on limitless integration, truly agnostic parcel lockers can optimize delivery routes and minimize failed attempts, cutting costs for courier companies, especially if we develop technology to push the capacity of lockers. Fewer delivery trucks on the road mean a smaller carbon footprint. An efficient process also has a higher potential to reduce costs. Mother Earth approves!

    The must-haves agnostic parcel locker software providers should strive for

    While agnostic parcel lockers have great potential, their success heavily relies on implementing a sophisticated software solution behind the screens. The software is the locker system’s backbone, managing critical processes, machine operation, data, and user interactions. Let’s delve into the crucial aspects where great software could play a pivotal role:

    1. Lightning-fast user interfaces that even your three-year-old can navigate with ease, 
    2. Real-time tracking and notifications keep customers in the loop. This feature enhances transparency and lets recipients plan their pickups conveniently, increasing the ability to combine trips and reduce their footprint.
    3. System flexibility to be able to connect an endless amount of (courier) systems
    4. High-level security with encrypted data and rock-solid authentication is essential to protect both customers, partners, and packages.

    Besides its impact potential in e-commerce, we believe that agnostic lockers should play directly into emerging trends, like the new frontiers – Customer to Customer (C2C) retail and re-commerce. With the rise of platforms enabling individuals to sell and buy from each other, lockers are stepping up to create smooth and secure transactions. So, anyone developing locker software would have to extend its software capabilities to host services beyond parcel exchange. Imagine selling that vintage jacket you thrifted online, and instead of worrying about leaving it on your porch, you pop it into a nearby parcel locker. The buyer gets a unique code, and voilà – they grab their new statement piece from the locker without missing a beat. It’s the future of C2C retail and changing the game.

    A limited number of winners on stage

    But here is the deal: not every company out there has what it takes to nail the software game. It is a tough nut to crack! It requires a blend of tech wizardry, creative brilliance, and a deep understanding of customer needs to cook up the perfect software solution / secret sauce. The key to success is to have software able to connect any locker type, any delivery or commerce stakeholder, and have all touchpoints for OOH delivery and customer work together. Only a handful of trailblazing companies possess the software capabilities to succeed in this competitive arena. If you stumble upon an agnostic parcel locker system backed by killer software, we advise you not to hesitate and dive deeper into the software wizards behind it. If it comes with a team looking already beyond agnostic lockers into fixing the outdated technological base of delivery itself, you know you have hit the jackpot. 

    In a world where customer convenience is king, the pressure is on to deliver packages faster and more efficiently. Agnostic parcel lockers, empowered by advanced software, are a huge part of the secret sauce to this delivery revolution. With seamless integration of multiple couriers, 24/7 accessibility, cost-efficiency, and environmental benefits, these lockers are leading a new era of delivery convenience. As we look ahead, the potential of parcel lockers should be leveraged, especially in the realm of C2C retail, impact services, and re-commerce; however, the full solution of the last mile lies in the hands of companies that see agnostic lockers as the first step in their plan to change the world. By embracing the power of agnostic parcel lockers and staying ahead in the tech game, Europe can become a delivery ecosystem that can thrive and delight customers across the continent. Feel free to contact our team for an introduction to our software solution. 

    To end, we want to beg the question: Should we do more and fix delivery at its technological foundation? That is a read for next week. Follow our updates on Linkedin or read our past blog posts to bridge the time!

    TLTR

    • E-commerce has experienced insane growth over the past decade, and this trend shows no signs of slowing down.
    • Agnostic parcel lockers entered the stage as an effective solution to optimize the last-mile delivery process,
    • The key advantage of agnostic parcel lockers is their ability to integrate multiple carriers into a single delivery point, but they also have great potential in emerging trends like C2C and re-commerce if the software allows.
    • The success of agnostic systems stands and falls with the software behind the screens. Only a handful of trailblazing companies have quality software solutions and a future-oriented design.
    • We spark a new perspective to fix delivery at its foundation for next week’s read.
  • The story of the NL model and DHL parcel.

    The story of the NL model and DHL parcel.

    “DHL takes over the 85 parcel machines from Smartmile in the Netherlands.” 

    – Emerce.nl/ paketda.de & Duurzaam ondernemen

    You might have seen this title cross your screen in our newest press release. This release tells the tale of our renewed partnership with DHL Parcel. Of course, there might be some (or lots) of questions on your mind, so let’s dive into the finer details of this spectacular tale  and analyse why we’re taking on this new role. 

    To kick things off, let’s start with the base; Smartmile.

    1. Who or what is Smartmile?

    Since you are on our website, chances are you know Smartmile a little. We’re a start-up aiming to revolutionise the delivery industry by optimising the current infrastructure.

    In case you didn’t know us yet, a small summary to help you out.

    Smartmile is a software company that puts the focus on building sustainable and optimised infrastructures of parcel machines. We continue to place parcel machines at key locations, empowered with our smart software. This software allows every delivery service or partner in the area to connect at one clear place, forming a so called ‘ecosystem’. Building these ecosystems is the key to an optimised infrastructure. It decreases CO₂ by reducing the amount of unnecessary driven kilometres. It also saves time for consumer, retailer and courier. All while maintaining a user friendly experience for every party involved.

    By connecting companies around the same set of parcel machines, we can design truly sustainable services as one, covering the last mile, together.

     

    A realistic example from the future:
    You ordered your new favourite snuggy online; the perfect lazy item for which you had no intention to make any effort of getting it yourself from a store or other place far far away. So you select a parcel machine near you. It gets delivered by an electric car to the parcel machine, and you get the notification on your phone.

    Your snuggy is so close by, ready to be picked up. But you glance outside, to the rain and suddenly your snuggy doesn’t seem as close anymore. Are you going to take a car?

    Then you see the option to deliver it home by bike courier with just one click in the app. Immediately behind the scenes, our software connects your request to our partner, the local bike couriers start-up. You select your preferred delivery time, the doorbell rings, your friendly neighbourhood biker hands over your new snuggy, and you’re ready to slouch on the couch with your favourite show.

    And best of all, the whole process did not produce unnecessary CO2, and you could stay on your lazy a$$.

    To bring this example to life, you need a parcel machine, a courier, and a bike courier and their systems have to be able to communicate. That’s only possible with Smartmile.

    2. DHL and Smartmile

     Let’s start from the beginning; Smartmile entered the Dutch market about three years ago, ready to revolutionise the industry. We kicked off our open and shared network in the Netherlands with Lidl, and DHL Parcel as our launching partners. 

    To understand what happened next, first some background information. 

    The Dutch market is very different from the Finnish market, the market where Smartmile’s journey began. In the Netherlands, two players hold the majority of market share; PostNL (65%) and DHL (35%) (Statista, 2020). Since this market is mainly dominated by PostNL and DHL, there isn’t an equal division of delivery volumes. 
    When a market is mostly divided among two major- and a few smaller logistics players, it is necessary to work together with at least one of the big ones. 
    During one of our meetings with DHL Parcel in Q2, they shared their ambition to expand their own parcel locker network. Since they have been a long-term partner and with us from day one, we had to come up with a solution that would benefit all of the involved parties.

    At first, we saw only two obvious choices;

    First of all, working together with all the small players in the Netherlands to continue our open and shared network without DHL Parcel integrated. 
    But operating an open network with all the small players would have taken us too much time, money and resources. Offering a solution that didn’t show a strong enough guarantee for a sustainable business model to continue with.

    The second choice was to work together with DHL Parcel on a closed system. 
    With this option, we would get distracted from our mission to build open and shared networks. 


    Both of these choices would either be extremely time consuming and/or potentially spread our resources, all for a market that in its market shares does not reflect the split for an open and shared concept.
    So after thinking long and hard about our choices, we put on our innovative head, and found an unexpected option. 

    Introducing the unexpected; 
    A temporary experiment with DHL Parcel for 12 months.
    Offering us: 

    • Another 12 months of running our software with DHL in a different way, improving the product and taking the ultimate test.
    • Feedback and insights on the integration of our software, user interface and direct interaction. All from one of the biggest logistical players in Europe.
    • A temporary financial boost which would strengthen our market position, but even more importantly, providing us a head start for our German entry.
    • Keeping all our rights to our own magical software for ourselves, by licensing it to DHL for a matter of 12 months. 
    • Freeing up time in our herd, which we can refocus on the German entry. Because DHL parcel will takeover the operational management of the 85 parcel machines in the Netherlands.
     

    For DHL this meant that they would get:

    • All our 85 parcel machines in the Netherlands, so they could add this to their current infrastructure. Preventing unnecessary machines getting built at same locations.
    • A 12 month software license, to empower these 85 machines with our Smartmile software. Handing them all the flexibility and capabilities that we have designed for the ecosystems that we’ve built.
    • Extra preparation time (12 months) to ready their own closed network software, to run on these different types of machines after the experiment.
    • The partnership with Lidl. To maintain the 85 locations, DHL Parcel will continue our collaboration with Lidl, giving them access to al the connected machines.Second level consultancy and support from our operational unicorns in the Netherlands to keep everything smooth with our Smartmile parcel machines.


    Pretty cool solution, right?    

    3. What will the future bring?

    Since we’re an international company focused on building these ecosystems around the globe, one delivery at a time, we’ve expanded to several countries. We’ve got offices in Finland, Germany, The Netherlands and Kenya, filled with a team of passionate entrepreneurs with different backgrounds.

    Continuing our mission means focussing on launching the Smartmile ecosystems in more and more markets around the globe. Connecting partners, start-ups, consumers and other great companies together in one ecosystem.

    One of our next steps is to enter the German market. Here we’re already talking about possible cities to start up, different companies to work with, and durable partnerships. The German market is very suitable for our open and shared network, because the German market consist of many different players without an overwhelming monopoly. This means that the market is quite equally divided over several players, whom we’d like to connect together to optimise their current system. 

    For future content, you can follow our social media channels to stay updated with our developments. Topics that will be coming back in the upcoming time are our future plans, our amazing herd and some in-depth information about our magical software. Stay tuned!