The impact of locker & convenience store deliveries on the courier industry - Cornel Morcov

This talk focuses on the shifting landscape of delivery methods in the e-commerce sector, emphasizing the rising importance of out-of-home solutions. The speaker, responsible for international expansion at a courier company, highlights the transformation in consumer behavior, with a particular look at the Romanian market where out-of-home deliveries have gained traction. They explain how out-of-home solutions promote efficiency and reduce delivery costs while addressing the issues of undelivered shipments and returns. The talk also touches on the impact of remote work on delivery predictability and stresses the sustainability benefits of out-of-home logistics. With expectations that such solutions will become the standard in European deliveries, the speaker concludes by emphasizing the growing reliance on lockers and drop-off points as integral components of delivery systems.

Good. U in few words about me. I'm managing for funer international expansion. I'm managing funurer molda and also I'm in charge with um uh the strategy and the business development on group level. The reason that funurer is present here as a company is to promote its crossber activities. But the reason that uh me personally I am present on this stage is uh to convince um the e

shoppers to use much more the out of home solutions because if we are looking to some comparison between uh eastern Europe or central Europe or western Europe we will see a lot of differences. So u uh we feel that together in our industry we should work more for convincing uh sellers and consumers to use autoome solutions and in my next slides I will explain uh why from

our point of view. So um I'd like to see who has from here uh who is uh ehopper who owns a eh shopper here or there is somebody here who owns a eshop okay thank you thank you very much okay if you don't have an uh ehop most probably all of us we are consumers for um for e-commerce and for uh for out of Um what we'll

see in our industry is that in last years uh the full structure of deliveries has been changed a lot. In Romania four or five years ago 100% of the business was home delivery. I know that Bulgarian market was not uh too different uh from uh from this. Um right now uh Romanian market has around 25% of the business out of home and it's just the beginning. Romania

is still a home delivery country and most probably will be for the next couple of years but our expectations are that in less than 3 to 5 years most of the deliveries will be done out of home. Of course this is uh due to the investment that uh most of the suppliers uh did into this uh direction but very important is that the behavior of the consumer

is completely uh transforming. Uh also from operational point of view the uh efficiency of our operational structure is um much more uh increased. What does mean does mean that we are able as a courier company we are able to convince and to offer a cheaper solution for our consumers and for our customers because we see that the market also is changing into this direction because most of

the people and most of the sellers are looking not only for a good service but they are looking only for a cheap service. Of course, doing home delivery with the driver in the city chasing the consumer to deliver uh it's not so easy to decrease the cost. But with an out of home solution, it's much easier to decrease the cost. And uh we see on our own

u uh operational structure that a courier that delivers out of home has um an efficiency between four and 10 times. A regular driver who is delivering uh uh home delivery is uh has the possibility to deliver around 100 120 shipments uh per day. But a driver for out of home has the possibility to deliver between 5 to 1,000 um shipments depend about the area that u this

uh driver has. Also in the courier industry, one of the biggest pain that the sellers and not only the sellers, the couer companies also has is the undelivered uh shipments, the returns. And this is why uh we um did a structure and this solution for out of home makes the possibility to have uh um less number of shipments not delivered into our own structure. We see that

all the goods going to out of home by different reason there is no only one reason by different reasons are uh reduced with 35% comp uh comp compared with the uh home delivery solutions. Um also very important is the fact that the behavior consumer is changing. um you now we see that um work from home um it's part of our daily activities. Not everybody is going to

the office every day but not everybody is working only from home. people um are changing their working locations and um this is why uh is very hard to predict the location where the consumer will be in um the day when the the the courier is able to deliver um a home delivery. This is why the out of home solution increased the flexibility for uh for the consumer.

And uh uh since the moment when um we introduced this out of home solution, we saw that the net promoter score of our increased with 10 to 15% just because it's easier for the consumer to take the goods under his uh possession. uh not the less important is the fact the local solution is much more sustainable and uh we see that here in the European community we

are looking much more for a sustainable um solution for deliveries in order to reduce the carbon footprint and uh not only and the efficiency that those lockers has for the city and for the for the community is very high if we compare with the regular uh home delivery uh solution. In conclusion uh for us we consider that the future of deliveries in Europe will be the out

of home solution. The home delivery will become a premium. The home delivery will become um non-standard. the standard into our industry will be the out of home. Somehow we will be we will uh came back to the history when most of the deliveries have been done from the postal um uh offices out of home by fan kurier. Right now we are running uh 2,100 lockers till June

this year we will run around 2,700 700 lockers. But not only the locals are the direction where the out of home solution is going also uh we are um running a solution for pickup and drop off points which are becoming also very popular in Romania as well. We know that in central Europe uh out of home solution with pick up and drop off points are um one

of the most reliable solution for the consumers. This will be a kind of gamecher for Romania as well. We see that Bulgaria also has its own out of home model a little bit different than our pick up and drop off points but is very good that the consumers uh are having a dispondability to uh take the goods not from the hands of the drivers but uh from

an office or proximity uh store. This was uh for today. You have here uh also my contacts and uh we are really grateful that you participated for this presentation. We really hope to help you uh even you are not a e-commerce player minimum consumer you could be in order to react to this kind of um uh shopping with delivery for out of home solution. Thank you very

much.