As technology accelerates the customer online order experience, the final leg, or 'last mile' expectation of efficient and scheduled on-time delivery has become one of the defining measures of customer service. This in turn has triggered enormous study and investment into contactless delivery, which will considerably alter the competitive landscape of retailers and food/meal-kit outlets.
Broll Property Intel, the research division of Broll Property Group, in its latest report Navigating the New Normal – Contactless Deliveries looks at how this market has skyrocketed with the impacts of Covid-19, highlighting the value of contactless delivery systems.
Contactless delivery was in effect prior to the pandemic, but only a handful of third-party service providers had the required infrastructure. The Broll report notes that before Covid-19, shopping online was a slowly growing trend in South Africa, with online sales accounting for some 1.4% of national retail sales, according to World Wide Worx.
Shopping online and having products delivered to one’s home or workplace was mainly for the convenience of time-strapped individuals who didn’t necessarily have to try a product out before purchasing it. But now, online retail is attracting a broader demographic of consumers.
Click and collect
Click and collect is a system where customers can shop online and go in-store to collect their purchases, limiting their exposure time in shopping malls and. Many stores, especially fast food outlets, now have designated ‘click and collect’ stations so that customers can access their food order and limit interaction with staff.
It also highlights Pargo, which boasts over 2,500 collection points in South Africa. Instead of door-to-door deliveries, Pargo enables customers to choose where they can have their parcels delivered to in order for them to simply collect in-person from a predetermined partner pick-up point, like Clicks, The Body Shop or selected Caltex petrol stations, in a customer’s vicinity.
The V&A Waterfront is partnering with Pargo, a click and collect service provider, to offer an alternative for shoppers who want to avoid possible exposure to Covid-19 by queuing in shops, but who still want to collect their own goods...
15 Jun 2020
The report states that since the national lockdown, South Africans have become more interested in contactless deliveries, noting that online searches for contactless deliveries have peaked in the fourth week of every month since March.
One of the contactless leaders during this time, according to Broll Research Intel, has been The Courier Guy, with its Pudo (pick up/drop off) initiative. Pudo, a paperless process that is managed on a mobile app that requires zero human interaction, has simplified the process of package couriering and redefined last-leg logistics, with its provision of sleek collection lockers that boast video surveillance, anti-break locks, and innovative package detection technology.
The widespread shift to home deliveries is set to outlast the Covid-19 pandemic, making the last mile even more critical to customer satisfaction and repeat business.
19 Jun 2020
Looking ahead, the Broll report reveals that drones and other logistics technologies are going to play an important role in keeping people safe within all levels of the supply chain. With the rapid growth of artificial intelligence (AI) technology, drones can be programmed to autonomously deliver and collect parcels anywhere in the world, and to near pinpoint accuracy.
The report provides some examples. In Seoul, drones fitted with LED lights have been collectively used to light the night sky with motivational messages of hope during the pandemic. In Pakistan, drones are used to protect agricultural crops from locusts and other harmful pests. Arguably the drone’s most noble ability is in the health sector, such as in Ghana where medical supply companies are using the technology to deliver critical medications to otherwise inaccessible rural communities.
Drone retail deliveries are a reality for Americans making use of Amazon’s ‘Scout’ delivery service. The fully-electronic system has been so successful that Amazon is rapidly deploying overhead delivery robots across the United States. UPS, the leading global logistics company with a firm footprint in South Africa, is also embracing drone-based contactless delivery with its growing fleet of autonomous Wingcopter parcel delivery drones.
Other topics discussed in the Broll Intel report include the rising demand for same-day delivery, the popularity of Checkers’ Sixty60 initiative before and after lockdown, and costs of some of the contactless delivery services currently in operation.
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