S'pore-wide parcel locker usage low after a year

While usage of the nationwide locker service for parcel delivery has been low, logistics partners have reported productivity gains with the one-year-old initiative.

The locker network is deployed, owned and operated by Pick Network, a wholly owned subsidiary of the Infocomm Media Development Authority, and was launched at the end of April last year.

On average, only 13 per cent of the lockers were used between January and March, said Pick yesterday.

However, logistics providers have seen their average productivity increase by three to 19 times, said the network operator.

Mr Ray Chou, country head of Ninja Van Singapore, said: "Pick Network's islandwide coverage provides increased convenience and accessibility for consumers who prefer to self-collect.

"It also allows logistics players... to increase our last-mile efficiency by enabling us to deliver more parcels within a shorter period."

Mr Kooh Wee Hou, Ninja Van Singapore's head of commercial, said: "As long as you can have more than 20 parcels to one location, you are optimising the location very well... It saves us a lot of time."

Pick chief executive New Soon Tee said his team has been focusing on expanding the network of lockers in the first year of operations and will now look at boosting its partnerships and educating the public on the benefits of its service.

Mr New said: "It (the utilisation rate of 13 per cent) is not a small number to start with because the infrastructure is built to last seven to 10 years. We have demonstrated the benefits, the productivity gain and the convenience, and the consumer feedback has been positive. The adoption is a matter of time."

He added that Pick's network of lockers helps to minimise the environmental impact from delivery services as fuel consumption and the number of repeated trips due to failed deliveries are reduced.

Pick was giving an update on its performance during a celebration and networking event for logistics providers yesterday. There are over 1,000 Pick lockers in community clubs, Housing Board estates and public transport nodes.

Senior Minister of State for Communications and Information Tan Kiat How, who was the guest of honour at the event, said the network is ready to serve 80 per cent of Singapore's residents, allowing them to "pick (up their parcels), any time, anywhere".

He said Pick has provided convenience to consumers and improved the logistics sector's productivity.

"By aggregating deliveries to a single locker station instead of consumers' doorsteps, Pick's lockers are able to reduce the strain of manpower crunch and increase cost savings," he said.

"Drivers say Pick lockers have allowed them to be more efficient by reducing time spent waiting at lifts and contacting customers."

A Pick locker station usually has between 40 and 50 lockers in six sizes, from extra small, which can contain one shoebox, to extra large, which can contain a 53cm medium-sized suitcase.

Over the next three years, Pick intends to deploy another 150 lockers. It is also looking to introduce parcel returns.

Singapore Management University's associate professor of marketing education Seshan Ramaswami said locker services throughout the island need more promotion.

He said: "Many Singaporeans have a helper or a family member at home throughout the day, so the increased convenience of off-office hours delivery may not be that critical a pull factor in switching to the lockers.

"Also, not every e-commerce site offers locker deliveries, although some e-commerce operators offer free delivery to pickup locations."