Sharp drop in the rate of using logistics lockers in Singapore

The logistics enterprise intends to increase the number of lockers nationwide despite the significant decrease in the use of this form after a year of application.

The network of smart lockers is implemented, owned and operated by Pick Network, a subsidiary of the Infocomm Media Development Authority (IMDA). The initiative was officially launched and applied widely across Singapore at the end of April last year.

However, after one year of operation, Pick Network recorded that only 13% of lockers were used between January and March 2022. The data was released by this company on Tuesday, July 26. However, logistics service providers said that since the application, their average parcel handling capacity has increased by 3-19 times.

Mr. Ray Chou, regional manager of Ninja Van Singapore, said that Pick Network’s island-wide coverage provides greater convenience and accessibility for the group of users who wish to pick up their own parcels. Such service also allows couriers like Ninja Van to increase last-mile efficiency when it is necessary to deliver more parcels in less time. “Ninja Van has been with Pick since the beginning and will continue to work closely,” said Ray Chou.

According to Mr. Kooh Wee Hou, the Head of Commercial Department of Ninja Van Singapore, for delivery enterprises, bringing more than 20 parcels to a single destination in one delivery shows that they are optimizing the delivery location and route very well. With such enterprise, Pick Network’s network of lockers has help them save significant time.

CEO of Pick Network, Mr. New Soon Tee said the staffing team was then focused on expanding the network of lockers in the first year of operation. At the same time, they were also considering promoting cooperation and communication on the benefits of this service to people across the country.

“13% of utilization rate is not a small starting number because the infrastructure needs to be built at least 7-10 years. We have demonstrated the benefits and productivity gained from this form of transportation. User feedback about the convenience of the service is also quite positive. It is only a matter of time before it is widely applied and used by the people,” said Mr. New Soon Tee.

In addition, the CEO also pointed out that Pick Network’s network of lockers helped to minimize the environmental impact of delivery services. Fuel consumption and the number of trips back and forth due to failed deliveries are also reduced.

Mr. New said that Pick Network wished to contribute in reducing the carbon dioxide emissions of service providers by 600 tons per year. Their challenge is to raise awareness among Singaporeans about this new form of service.

“We did a lot of communication to help the public raise their awareness about the convenience and security of Pick Network. Many young people are currently interested in the field of carbon waste. Therefore, communication campaigns about the service and its benefits will resonate with them,” said Pick Network’s CEO.

In addition, Mr. New Soon Tee also revealed that the company would aim for development, calling on the public to change their behavior. There are now more than 1,000 lockers to be deployed across Singapore, located mainly at community clubs, residential areas and public transport junctions.

The Senior Minister of Communications and Information, Mr. Tan Kiat How said the network of lockers was available to serve 80% of Singapore residents, allowing them to receive or pick up their parcels at any time. “By consolidating parcels in the same area, delivering them to a single drop-off point instead of going to the door and placing them on the doorstep of consumers, Pick lockers can help reduce staffing pressure and reduce costs,” he added.

On the other hand, individual drivers also receive benefits from the network. Some say that Pick lockers allow them to operate more efficiently by reducing the time of waiting elevators and contacting customers. The OTP (One Time Password) system also enhances the security of recipients.

Shippers can also easily find the right sized lockers for the parcel thanks to the available information. A Pick Network station of delivering and receiving goods typically has 40-50 lockers in 6 sizes that can fit a shoebox and a 21-inch medium suitcase.

Over the next three years, Pick plans to deploy another 150 lockers in new residential areas and spots with high utilization rate. The company also plans to introduce more about forms of parcel return.

Dr. Seshan Ramaswami, Associate Professor of Marketing Education at Singapore Management University said locker services across the island nation should be promoted more. In addition to helping reduce carbon emissions, they also bring convenience to users when lockers are always available to receive or remit money, goods 24/7.

Thy An (Theo Straits Times)