LOCKER SYSTEMS While lockers are not new technology, they’re starting to be deployed in new ways to help with the last inch of delivery. Lockers “separate the customer from the carrier, but in a secure way,” Goodchild says. What’s less clear is how much demand exists for lockers. As Abeson notes, if a consumer can order online and receive their shipment in one or two days, or get it at the store—to which they may already be going—how much benefit do lockers add? Lockers tend to be most useful when they’re located near where people are biking, bussing, or walking, says Spencer Shute, principal consultant with Proxima, a supply chain consulting firm. Then, they can stop by the lockers when they’re already out and about. What about lockers at consumers’ homes? “We’ve seen a lot of misses about what a porch locker can look like,” Twiningdavis says. However, the idea might come back around. Software already exists that allows some drivers to open the boxes by scanning a QR code. The main hurdle is cost, as the boxes operating the software cost several hundred dollars. CROWDSOURCED DELIVERY Crowdsourced delivery models, which use networks of local, non-professional couriers to deliver packages to customers’
for quite a while,” says Ryan Walsh, founder and CEO with Valqari, which makes drone landing stations, among other products. Valqari’s stations have been deployed in golf courses, stadiums, and campuses. What has lagged are regulations, Walsh says. With limited exceptions, most drones in the United States currently must fly within the pilot’s line of sight. That eliminates a good portion of the market. However, a few drones are in
operation. In mid-2022, Amazon announced it would begin drone
deliveries in Lockeford, California, and College Station, Texas. More recently, Amazon launched the next generation of its drones. In February 2023, Senator Mark
How do you define the “final inch”? The experts weigh in: “It’s getting the shipment to the final customer,” says Spencer Shute of Proxima. This won’t necessarily be through a distribution network, but could be through third-party carriers or other solutions. “It’s the actual package hand off,” says Jeremy Tancredi, partner with West Monroe, noting that it’s enough to get it to the front porch. The final inch means “the delivery is in your hands,” says Melissa Twiningdavis of Accenture. It’s “delivering a package to an end customer conveniently, efficiently, and safely,” says Raj Vaughn-Patel of Clarkston Consulting. This includes value-added services, like signature capture or identity verification that are promised as part of the delivery service, he says. WHAT IS THE FINAL INCH?
Warner (D.VA) introduced the Increasing Competitiveness for
American Drones Act of 2023, which has gained bipartisan support. Among other provisions, the bill requires the Federal Aviation Administration to establish a regulatory pathway for certification or approval of unmanned aircraft systems to enable commercial operations that are beyond visual line of sight. Drones tend to make the most sense as the delivery distance increases, Walsh says. For example, it’s likely more efficient to have a drone deliver a burger to a consumer who’s five miles away, than to have the consumer drive to get it.
2022 PARCEL VOLUMES A full year ahead of pre-pandemic predictions
US Actual Parcel Volumes vs. Pre-Pandemic Forecast, in Billions
30bn
20bn
10bn
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Pitney Bowes 2019 Forecast
2019-2022 Actuals
Pitney Bowes 2023-2028 Forecast
Source: Pitney Bowes 2023 Parcel Shipping Index
August 2023 • Inbound Logistics 35
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