Why are we talking about PUDO “neighborhood delivery points”?
Since 2020, with the movement restrictions, the imposed social distancing, and the temporary closure of shops, we have witnessed a substantial change in our shopping habits.
Consumers have started to rely on e-commerce as the main channel for making their purchases, both for food and for consumer goods.
This new trend, which has had a rapid and exponential increase, has seen all the players involved in the process undergo a rapid evolution of their organization, as well as their technological and infrastructural systems.
Consumers preferred choosing retailers with guaranteed quick and daily deliveries, and logistics and transport services became a fundamental node of the process in terms of competitive advantage in customer acquisition and loyalty.
The new role of logistics and transport
Logistics and transport services now have a new fundamental role that directly impacts all aspects related to pollution and the environment.
In terms of its environmental impact, and consequently on our health and well-being, it is an important aspect that requires a fast and thorough response because the inadequacy of logistics and transport systems is causing a rapid increase in emissions harmful to the environment and traffic congestion.
According to the most recent analyses in “The Future of the Last-Mile Ecosystem,” published by the World Economic Forum, there are many interventions that could be implemented to improve the distribution chain in terms of CO2 emissions containment, reducing traffic, lowering costs, and better customer service, which translates to having a competitive advantage for the retailer and subsequent development of the micro-economy.
LESS, a non-profit environmental organization, supports this moment of transition for the logistics and transport sector, proposing specific solutions to contain pollution and reduce costs. It works alongside all the players involved in the entire distribution chain, supporting them to implement the necessary interventions for the innovation of last mile deliveries with an aim of environmental sustainability.
One of the main projects of LESS is the creation of innovative “Neighborhood delivery points” PUDO (Pick-Up Drop-Off)
The PUDO are physical pick-up and collection points that are easily accessible and set up extensively throughout urban areas.
What are the main advantages of PUDO: convenience and savings for people, growth of the micro-economy in neighborhoods and cities, and environmental protection.
How do they work?
Once the purchase has been made, one chooses a convenient PUDO location for the pick-up – on the way to children’s school, area where you go to shop, near the gym, or the local bar – thus not bound to a certain place for a time slot, and therefore without having to change one’s commitments or habits.
Getting a delivery at a PUDO location allows substantial savings on delivery costs that are normally applied.
The PUDO are perfectly integrated into the social fabric of the area as a service to the citizen, of the citizen for the citizen, with lots of benefits.
In particular, the points of sale and businesses have the possibility to provide a service to their customers, as well as the opportunity for customer development and loyalty based on the service.
In a PUDO it is possible to take advantage of the customer base to promote one’s own business.
Even for public entities such as municipalities, libraries, and schools, the competitive advantage is the possibility of providing a service with great added value.
PUDO points, by concentrating deliveries to a single location, produce a substantial reduction in transport costs in the last mile; just consider the total reduction of non-delivery and subsequent re-delivery to the recipient, an added benefit of an increase in margin of profit.
What are the aspects of innovation and the advantages of the “LESS’ PUDO”?
LESS provides a free mobile application platform allowing direct contact between the user’s demand for service and the available local businesses.
In order to achieve great impact, it is necessary to disintermediate the formal relationship between the business and the user by eliminating the factors that limit the growth of the system such as cash flow management, surcharges, mediations, taxes, and insurance.
The LESS app manages the service flow that is advantageous for the user and the merchant
The user can use the service for free; the merchant will be able to sell their products / services, completely eliminating the costs to provide the service and increase their earnings.
Premium services such as home delivery by appointment or after-hour delivery are available for an additional cost or combined with the purchase of other products and services.
The absence of economic and contractual intermediation will allow a viral expansion of the use of the app, with an advantage both in terms of environmental impact (aggregation of deliveries leading to fewer stops, LESS’ key mission) and to support the local economic fabric.
Another important aspect is how the use of PUDO is one of the key points in leading a positive effect on sustainability.
The major impact factor on the CO2 emissions of the LESS’ PUDO network is the fewer number of courier stops made for the same number of deliveries, with subsequent reduction of road congestion and travel.
What are the green contributions of LESS? The PUDO network
LESS’ PUDO network that allows people to choose for the delivery, the app that allows the use of LESS’ PUDO service, the social involvement that raises awareness of a completely green delivery system that provides the same service at no additional cost, but above all, the monitorable and vertificable reduction in carbon footprint through objective and public data.
50% of the consumers who make online purchases are sensitive to issues related to the environmental impact, climate, energy savings, and ethics in general. Therefore, the use of a green service such as the PUDO of LESS corresponds to the possibility of concretely increasing the brand value by making retailers the preferred choice for purchases.