The survey also found that two-thirds think all webshops should offer both climate-friendly delivery and return options.
The finding chimes with a recent DHL report based on surveys carried out in nine major European countries, which revealed that over half of online shoppers are prepared to pay more for green delivery options.
But what about the shoppers who value sustainability but don’t want to pay extra? Are CEP operators overlooking options that would enable them to make deliveries more sustainable and cheaper for their end-consumers?
Knowing customers’ Slipper Distances
CEP operators need to ask their customers how far they’re prepared to conveniently walk to pick up their parcel.
The industry is increasingly referring to this as the ‘Slipper Distance’ – how far end-consumers are prepared to walk in their slippers.
The answer might not necessarily reflect how sustainably-minded the end-consumer is. A remotely-located organic farmer might say zero metres based on the emissions they might produce on the journey to the delivery point, whereas a climate sceptic in the city might say 200 metres – figuring they pass by their local shops on a daily basis.
The Slipper Distance is just as much about practicality than attitude – for example, in city centres it might be impractical or expensive to drive or park vehicles, points out Elmar Toime, Postal and Logistics Strategic Advisory and Non-Executive Director at Qatar Post:
“Green initiatives that may limit multiple vehicle entry into congested areas will favour centralised delivery points such as lockers.”
Lowering the Cost of Drop
Knowing the Slipper Distances of their end-consumers can enable CEP operators to hugely cut the ‘Cost of Drop’ – the number of parcels delivered per location.
Delivering parcels on a route made up of 30 different addresses – requiring drivers to figure out 30 different ways of parking legally and conveniently, along with 30 different ways of obtaining access to the end-consumers – is both time-consuming and costly.
Compare that to making just one delivery of 30 parcels – the guarantee the driver is using every minute of their route productively, which makes good financial sense, says Toime:
“Different labour models are emerging that allow flexible hours, payment according to delivery productivity, and reduced capital expenditure from the overseeing delivery organisation.”
Heading into 2024, CEP operators need to prioritise knowing end-consumers’ Slipper Distances and reducing the Cost of Drop in order to make the Last Mile more viable, contends Christian Østergaard, Lead Visionary – Senior Group Strategist of IT Production/IoT/AI at PostNord:
“Moving away from a delivery service that drops one parcel per stop to one that drops multiple parcels – at a PUDO or lockers, for example. Near-home deliveries like these will not only drive down the cost per drop, but offer a far more sustainable way of working, along with certainty the parcel can be delivered at the first time of asking.”