Smart lockers, new logistics solutions for ecommerce
Estimated reading time: 9 Min
Lockers intelligent Have you heard of them? Evolution in the area logistics It doesn't stop, every day we find new solutions for the ecommerce who seek to make the online sales, a much more efficient and satisfying shopping experience.
To talk about the topic, we interviewed in EcommerceAlCubbo to Jorge Chávez, expert in logistics solutions for ecommerce and Co-Founder of Lok, a technology company focused on redefining the logistics landscape of last mile in Mexico, through the network of lockers largest smart home in the country.
Don't miss this article! Learn how the smart lockers, challenges of ecommerce in Mexico and Latin America, the benefits of being customer centric, what is I ecommerce, the future of logistics in e-commerce and much more.
Let's start...
What do you consider to be the biggest challenges of ecommerce in Latin America?
"The main challenge is bankarization, in Mexico we are among the lowest percentages in all of Latin America (37%), comparing ourselves to countries with similar growth and industries, this is one of our main limitations (in Colombia, for example, bankarization exceeds 80%). In addition to this, another aspect that impacts me is the percentage of the population that has its credit card saturated or at its limit."
"We not only have people who are not banked but a large number of cardholders who, even having this means of payment, cannot use it; which represents an enormous limitation for the ecommerce, leading many online stores to diversify their payment methods, considering cash as an option.”
"The second challenge is the Mexican culture. We come from a culture where we like to see things, touch them, measure them, go to the store, because we distrust the quality of the product; something that during 2020 had to change overnight, since we find ourselves in front of closed shopping centers and stores, where, in many cases, the only channel enabled to buy was the on-line".
“This is how the common denominator of buyers, who were between 20 and 40 years old, began to include populations between 60 and 70 years old, who began to buy in ecommerce from supermarket products to purchases of all categories. 2020 was that boost that the e-commerce "To have greater reach, we hope that this growth will be maintained in the coming years."
Speaking of temporality, what is the biggest challenge when facing a peak of high demand in ecommerce?
“Within the ecosystem of ecommerceFor me the biggest challenge is logistics chain, where the last mile It is usually the most complicated. In Latin America and especially in Mexico, we have a logistics chain important and robust, it is an industry that has been in the market for a long time, however, it is not as flexible compared to sectors such as ecommerce, and not being able to match the growth speed that the e-commerce, is starting to be an obstacle. In seasons of high demand, operations are generally saturated and for this reason, delivery times become much longer than what is offered.”
“70% of shipments in Mexico arrive in 2 to 5 days, even so, most of ecommerce They offer 24 and 48 hour shipping, therefore, it is the customer who has a bad shopping experience, by not receiving their product in the promised time.”
“One of the main areas of opportunity for high demand seasons is the logistics, where for several years, new solutions with a technological DNA have been appearing, which are much more flexible and can adapt to these types of peaks, such as on-demand companies, dedicated transport companies or fulfillment as Cubbo, which are that solution that the industry needs to satisfy consumer demand.”
What can we say today about the customer experience?
"Currently, it is the buyer who decides where, when and how they want things, if you are not at their level, you are left out. In this case, something that is happening is that the consumer who wants everything quickly is being segregated and they are not realizing that, in reality, what is needed is a range of options for the buyer."
"You can have customers for everything: you have those who want their product to arrive today, those who expect their product tomorrow, those who do not care if it arrives in 3 days and those who do not care if they receive it 8 days later. What factors influence these preferences? The price."
"You can have a user who is buying a product for $200 pesos, if you deliver it to them in 8 days but the shipping is free, they will buy it from you, you can also find the customer who purchases a product for $300 pesos, who needs it for today and will pay you whatever they have to pay to have the product in that time."
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“The problem lies in the customer who wants everything fast and with free shipping, but the ecommerce It is so diverse that there is something for everyone. What happens if you offer the buyer a range of possibilities? I consider that this is the future, not the fastest everything, but having options for everyone, because fortunately we are not the same and everyone has different needs, tastes and ways of buying, this, I think, is the root of everything."
What is I ecommerce and how is it related to Lok?
“It is a term that I basically use to describe what we are experiencing on the consumer side, where we are all customer centric, we are focused on the client and everything revolves around the client, which is very positive, but it makes the user increasingly more demanding, having both the ecommerce like the industry logistics "We have to adapt to their demands."
“Based on this, Lok was born to address those needs that both ecommerce such as retail to satisfy user demands, contemplating aspects such as omnichannel strategies that are becoming increasingly stronger and thanks to which, it is possible to offer the consumer different possibilities that did not exist before.
"Today you can buy a product online and it can arrive at your home in
“This is where Lok intervenes, replacing the traditional click and collect (where there were people serving at a counter and you had to wait while they looked for your order with a ticket) with the automated one, where basically a QR code on your cell phone notifies you when the product is already inside a locker, you arrive at the place, you scan, you pick up your order and you leave.”
“These types of mechanisms mean that the collection process is generated in seconds and avoid the issue of interaction between people, something that has taken on great importance in the new normal.”
What percentage of buyers prefer this delivery method?
"Between 30 and 35% of customers who buy online, request in-store pickup, due to issues of time, costs, etc., a figure that is increasing; the end user is looking for, out of necessity or pleasure, the delivery of their product in different locations, those that are on the way to their work, or where they are going to buy their food. In addition, being in a network of smart lockers, "You know that your purchase will be safe, protected and will not be damaged while you pick it up."
"In these places the user can also make their returns, helping to make the issue of reverse logistics more efficient, a headache that has always arisen in the ecommerce, where generally the buyer usually has very few options to return the product.”
"The lockers They are not only a smart delivery point but also a smart return point, where the user has different options that fit their needs and make the process more comfortable. This is the solution that Lok provides to retail channels and ecommerce full players”.
What are the benefits of being within a smart locker system like Lok?
* “In the retail part, in automated click and collect, 49% of customers who request to pick up in store, buy something else when they go for the product, that is, purchasing in stores increases.”
* “When the customer picks up their product, a reduction in operating costs in retail of almost 30% is generated; by not shipping, last mile distribution costs are saved.”
* “Both for him ecommerce As for retailers, the cart abandonment rate decreases by 18% when they provide the customer with different delivery options.”
* "In it ecommerce, offering a delivery point reduces the distribution cost by 10 to 15%.”
* “It allows carriers to make consolidated deliveries, taking 6 orders to different houses is not the same as delivering this same number of products in a single location. A route of lockers “It can move 3 times as many packages in half as many kilometers, increasing operational efficiency.”
* “In environmental matters, reductions of 35 to 70% in CO2 emissions are achieved by having more efficient distribution routes.”
How has the implementation of smart lockers been in Mexico and other countries?
"This system was established in Asia and Europe 10 years ago, in Mexico it is relatively new; here we have a mixed network: on the one hand, a network of lockers private for clients who use them for the delivery and departure of their products only; and networks of shared lockers, installed in different locations so that any ecommerce or carrier can use them as a delivery and return point.”
"There are European companies that have more than 10,000 points installed in countries whose size is 1/4 that of Mexico and have half of its population. In places like China, we find companies that have more than 100,000 lockers installed throughout its territory, where this solution emerged to avoid the saturation of logistics operations.”
“The system of smart lockers In Mexico it is growing, we are in a process of evangelization, of making known how its implementation occurs and the support towards the end user, where so far, we have obtained very good results. Within the data we have, the use of smart lockers “It has improved the purchasing experience of the customers of our allied companies by 20%.”
How has Lok's collaboration with carriers been?
“At Lok we began to make alliances with carriers that had the same technological DNA as us, to offer not only delivery points, but also the collection of the product in the warehouse to take it to the locker, it was there where he was born Lok Logistics, a more complete solution for the “ecommerce”.
How do you see the future of logistics?
“In the medium and long term we are going to find more technological-logistics solutions in the market, delivery with drones, with autonomous vehicles, personal lockers, artificial intelligence, more advanced geolocation, etc., initiatives with a greater technological component, where the industry logistics In general, it does not advance in its digital transformation, it will not be able to compete.”
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What are those 3 winning tips that generate a high impact in ecommerce?
* “Implement technological solutions in the part logistics, where you can have cost efficiency and operational processes.”
* “In the customer experience, have a range of possibilities for customers, both in product and shipping and payment options.”
* “Have a robust platform that meets the needs, from which you can get the most out of it.”
3 things that happen today that won't happen in the future?
* “Whether the product arrives before or after what was promised, logistics companies and ecommerce They fight to have more and more exact delivery times.”
* "You don't know where exactly the product is. Today you know that it is en route or left the warehouse, but in the future, you will be able to see in real time where it is."
* “Not having a single product or shipping option but rather multiple alternatives.”
One of the main areas of opportunity for high demand seasons is logistics, where for several years new solutions with a technological DNA have been appearing, which are much more flexible and can adapt to this type of peaks, such as on-demand companies, dedicated transport companies or fulfillment in Mexico City, which are that solution that the industry needs to satisfy consumer demand
Being at the forefront and evolving as the sector does, must be an objective in your ecommerce, where one of the key points is the optimization of your delivery service. If you are looking for an ally to help you manage your inventory, improve your shipping process, enhance your compliance and customer satisfaction, do not hesitate to contact us, we are the best fulfillment center for ecommerce in Mexico and Colombia, you just have to click here.
