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Optimizing Distribution Channel Results by Eliminating Human Errors with Smart Lockers

. Reading time: 4 min.

Barbara Alvarado
Barbara Alvarado
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Distribution Channel

The logistics process involved when a product is delivered to the end customer is pretty extensive. This process is just possible with a good set of organizations working together to create the right distribution channel.

Whether these channels are short or long or whether we are talking about a direct or an indirect distribution type, inevitably, human interaction is required to ensure that products/items are delivered.

Human Errors Data in Distribution Channels

With human interaction, errors come along. The list of errors is countless and the most common errors are found in the delivery phase (when the items are on transit), specifically during the last-mile distribution. Errors such as drivers getting lost, car breakdowns/accidents, incorrect product delivery, or in compromised conditions, and even lost packages.

These examples show how human errors do not just represent extra costs and monetary losses for companies, but also a huge risk of losing customers’ loyalty. In fact, research carried out by Voxware gives us two very interesting insights into customers loyalty and delivery inaccuracy.

According to this study, 69% of respondents are less likely to shop with a retailer in the future if an item they purchased is not delivered within two days of the date promised.

Taken as a base this same sample of respondents 16% stated to abandon shopping with a retailer altogether if they receive an incorrect delivery just one time, these figures just reinforce the main idea of this blog: companies need to align with advanced technology to streamline their distribution operations eliminating human errors.

Distribution Channel - Bloq.it
Delivery man confirming customer’s address (Photo by Kindel Media – Pexels)

Human Errors in Last-Mile Costs

Hence, putting the previous figure into monetary perspective, we can say that delivery issues could cost retailers $333 million and an additional $1.5 billion in potential lost revenue from shoppers who won’t return if they experienced a bad delivery experience.

How Can Human Errors Be Reduced in Distribution channels?

The end goal for businesses is to incorporate the gift of technology to achieve a free-flowing delivery by eliminating as many intermediaries as possible because no matter how experienced delivery employees may be, there is always room for error and not all of them meet the quality or speed standards.

Small actions can be applied depending on the product category. However, in general terms, most businesses have room for warehouses and fulfillment centers optimization.

By improving operations for easier stock and allocations, opting for direct shipping, speeding up deliveries, skipping the warehouse storage, or incorporating a network of smart lockers to ship all products to one centralized location.

Distribution Channel - Bloq.it
Warehouse operations (Photo by Tima Miroshnichenko – Pexels)

Perks of Smart Parcel Sorting

When companies (whether they are online or brick and mortar) deny embracing the gifts that technology has to offer, they fail to improve their employees’ jobs and possibilities of reducing costs. Below are some of the reasons why Smart Lockers represent a logistics solution when companies want to reduce human error.

Smart Parcel Lockers allow companies not just to drop parcels at accurate geo coordinated locations (saving time and fuel costs by trying to find unidentifiable addresses), but also allow first-hand management and data collection, and personalized delivery methods with broader time-frame parcel collection resulting in a pleasant customer experience and boosting customers’ loyalty.

In conclusion, companies’ success relies not just on the products’ quality, low price, or marketing efforts. It was been proven that with the fast-paced growth of e-retail counting with the last-mile logistics is paramount.

Therefore, eliminating one single intermediary out of the last leg stretch of the distribution channel can translate into a major revenue source for companies and increase customer retention capacity.

Distribution Channel - Bloq.it
Customers lining up to retrieve parcel

How can Bloq.it help you and your business?

At Bloq.it we supply customer-made smart lockers for several uses, build with tech-savvy system integration and development. Many companies in more than 10 countries have already improved their distribution channel operations with our solutions.

Want to discuss more how Bloq.it can help you and your business? Reach out to one of our specialists