Itella has started deployment of parcel delivery solution provider Cleveron’s most recent model of parcel terminals called PackRobot that promise major space savings for retail store operators and superior ergonomics for consumers.
The first terminal was launched in Itella’s parcel terminal network in Estonia (photos: http://bit.ly/1cBxUEF). Itella is Cleveron’s largest customer to date and operates a parcel terminal network that covers Finland and Estonia.
Riding the wave of e-commerce
In Europe, the amount of goods purchased online is growing 10-15% annually. “Compared to a traditional delivery service, parcel terminals enable customers
to manage their parcel delivery significantly faster and at a location that is convenient for them. In 2020 the market will be dominated by the symbiosis of supermarkets and e-stores, with parcel terminals as common as ATMs or mobile phones today,” says Cleveron’s sales director Ardo Mardisoo.
“Logistics services are undergoing a huge shift towards e-commerce. By 2020, Itella’s main focus will shift from letter, publication and advertisement distribution to the management of e-commerce parcel flows, warehousing and goods distribution. This is a major source of growth for Itella, so we are actively looking for ways to support the strategy, one of them being the implementation of automated parcel terminals,” says Itella’s e-commerce unit director Aku Happo.
Behind PackRobot’s conception are the explosive growth in e-commerce and increasing consumer demand for self-service parcel terminals. To accommodate
the growth and make the best use of floor space, Cleveron’s mission in designing the new terminals was to increase terminal capacity per square meter.
The new type of parcel terminal has a single sliding door for both incoming and outgoing parcels. It uses up to four times less floor space than ist predecessor and automatically delivers the parcel to a vacant section in the terminal. The parcel terminal can hold up to 720 parcels on only 4 square meters.
From a consumer’s point of view, the new PackRobot is more ergonomic as the door is located at the optimal height for all customers, including children, the elderly and people with disabilities.
Cleveron expanding internationally
Cleveron expects the launch of PackRobot to further accelerate the growth of automated cross-border parcel delivery and attract the interest of Major players in the field of e-commerce.
“We have prospective customers all over the world, on every continent. Although currently we are primarily focused in building up our network in the Nordic countries and Western Europe, the next Cleveron-powered parcel terminal network will be set up in Brazil,” Cleveron’s sales director Ardo Mardisoo explains.
All global e-commerce giants are potential customers for Cleveron’s new product. “This specific part of the delivery chain is still in ist developmental stages, and Cleveron’s parcel terminal networks are one of the few in the world that have proven to be profitable,” Mardisoo emphasizes.
Outdoor solutions not profitable despite the trend
Cleveron’s network is profitable for several reasons. One of these is the extremely high reliability of the terminals due to their robust build Quality and software-centric approach in implementing the terminal’s functionality.
“Outdoor parcel terminals available 24/7 are getting a lot of attention right now, while indoor terminals are actually the ones that are profitable, mainly because their service costs are significantly lower. With the outdoor terminals, you need to manage extreme temperature, humidity, sun, dust and security issues. Altogether, during 10 years of operation, the operator of outdoor terminals needs to invest twice as much, compared to indoor ones,” Mardisoo explains.
Cleveron also claims that 24/7 availability is a flawed argument for setting up outdoor terminals. The number of consumers that prefer to use the terminals during very late or early hours make up just a small percentage of the overall amount. Operators are virtually doubling their costs to accommodate the needs of a few rare customers.
According to Happo, Itella is using Cleveron’s technology for its reliability and customer-friendliness. “It is also important to note the cost effectiveness and smaller environmental footprint of the terminals compared to home delivery,” Happo comments.
Cleveron offers fully automated parcel delivery solutions. In addition to the development of parcel delivery solutions, Cleveron has set up a successful business of providing logistics services using the same parcel delivery solution in its own operations. The company was founded in 2007 in Estonia.
Itella Group provides solutions for managing information and product flows. Itella operates in the fields of mail communications, logistics and financial management in Europe and Russia.