Automated storage retrieval system for urban parcel distribution

An idea to solve urban parcel delivery problems

A typical problem with parcel delivery is that parcels are usually delivered during business hours, which is when most people are at work. With the ever-increasing amount of online shopping, the amount of parcels that have to be delivered but are being taken back to the logistics storage facilities are enormous. That means countless parcels are just driven unreasonably around in already over-crowded cities and create even more emissions.

Current solutions for microdistribution

In some cities, logistics companies as well as retailers like Amazon are testing various concepts on how to deliver better to customers.

1. Using local shops as pick-up places: Local shops are great to receive parcels for when you are not at home, since they may be more trustworthy than some neighbours. The downside is again opening hours.
2. Microdistribution via electric vehicles: Delivery with smaller and greener vehicles does not address the actual problem of delivery when people are at work.
3. Retailer-specific delivery boxes: Some retailers setup delivery boxes, such as Alza in the Czech Republic or Amazon in the US. These are convenient but only limited to one retailer and would not be able to accommodate larger amount of parcels.
4. Drone deliveries: This does simply not work in crowded spaces in large cities due to the density of housing and is not efficient either.

With modern urban lifestyle, people want greater flexibility when expecting parcel deliveries, such as picking it up after work on their way home.

Urban parcel pillars

One solution to the problem of delivery could be parcel pillars. The idea is to build (mostly underground) pillars that have larger capacities to receive and to retrieve parcels from various vendors and logistics companies.

When recipients are not able to receive the parcel, the logistics company could approach the next pillar and dispose the parcel there. The parcel is marked with a code and stored at random in the pillar. At the same time the recipient receives a message with the code and the location of the parcel. He can then come at any time of the day to receive the parcel from the parcel pillar.

Benefits

The system would bring several benefits:

• Customer satisfaction: It meets urban lifestyle better since people want greater flexibility.
• Cost reduction: It requires less personnel than bringing the parcel back to the storage facility. Moreover, it is fully automated and vendor-agnostic.
• Environment: It is better for the environment since it eliminates the need to drive the package several time to the recipient after delivery unsuccessful attempts.

Business model

There are two possible ways of revenue streams:

1. The cost is covered by the retailer or the logistics company which would in return add the cost to the freight cost.
2. The recipient could choose this type of delivery and pay from the app directly. That is the more just way, since only those recipients pay who are unable to receive the parcel in person.

What do you think? Would such a system help solve the parcel delivery problem in a growing online shopping market space? Feel free to comment below.