ParcelXchange's "smart technology" puts customers in control of the last mile
The concept of a ‘virtual post office’ with fewer people, serviced at night when the roads in most global cities are not congested and driven by ‘smart card technology making the drop boxes as secure as ATM cash machines has to be the next supply chain solution in business to business (B2B) and business to consumer (B2C) collections and deliveries. Can this ever be a reality?
The reality – control of the last mile – is Business Direct’s ParcelXchanges, network with drop boxes now numbering 4000 all within 7kms of any UK resident. Originally developed for the service engineer sector, the ‘time critical parts’ are picked in a Business Direct or customer warehouse and sent through its in-night system for delivery into the appropriate ParcelXchange. The engineer is sent a text message to tell him/her that the parcel has arrived. The parcel can then be picked up with any returns put in the box. It is the ‘intelligent box’ that sets ParcelXchange apart, says Business Direct’s Chief Executive Paul Carvell. Each individual box is connected through Business Direct’s servers which have specially developed software and are fitted with barcode scanners. This gives the customer full visibility of the parcel throughout its journey from one end to the other end of the supply chain. Each individual engineer can be identified using similar technology and security levels as existing ATM machines. The exchanges are also fitted with a barcode level printer so that returns can be properly routed. The risk of ParcelXchanges being broken into is minimal as the technology is as good as it gets.
Having developed a successful operational model for the B2B sectors, ParcelXchange is being trialled in a B2C setting with a fashion and electronic equipment ‘e-tailer’ in the UK. “The service will be aimed at the ‘cash rich time poor’ who want to control the last mile themselves. ParcelXchange allows them to pick up their goods – usually high value, at a time that suits them. In this instance individual customer’s ID could be done through their credit card they bought the goods with. Very much like collecting fast tickets at airports or rail stations.
In future the face of Post Offices globally could be changing following Business Direct’s decision to licence its intelligent drop box system throughout the world. Business Direct believes that licensing ParcelXchange will help national post offices retain clients that will come under attack from local intelligent box operators without the need to invest in the substantial development costs for logistics service providers. ParcelXchange will enable ‘best-of-breed’ In Night operators to develop Pan European, and Global networks of drop boxes enabling them to win major contracts in the B2B sectors. In the B2C arena national post offices will have an opportunity at a low cost entry point to compete with other local B2C operations by retailers, manufacturers and logistics providers. For customer to customer (C2C) solutions it means that national Post Office and logistics providers can invest in marketing the services rather than finding substantial investment income to develop the drop box network.
Business Direct has produced a cost effective and sustainable solution for the ‘last mile’ in the delivery process including B2C, C2C mail, failed delivery, cash-on-delivery and the costly issue of returns. So confident in the future of ParcelXchange and Business Direct’s specialist courier services, Chief Executive Paul Carvell has raised 4.5m in the City of London to underpin the future of ParcelXchange. This will build the business from its current position to one where it is turning over £35m and making a 10% return within three years.
