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Ninja Van rolled out their first collection point/parcel locker in 2015. Prior to this, they had already established a set of reliable processes for doorstep deliveries, so this was a natural progression for them. The launch of this delivery option was also something Ninja Van did in response to the trend that they were seeing coming through from more mature markets like Europe.
“Investing in a collection point network has provided us with added options when it comes to the last mile fulfilment process. Combining our tech systems and scalable processes, we’ve developed an established network of parcel collection points across Southeast Asia, enabling us to offer customers a choice while at the same time, creating more efficient ways of delivering a hassle-free experience.” said Mr Eugene Huang, Regional Head of Retail.
What were the initial challenges Ninja Van faced when setting up collection point networks ?
Eugene Huang : Part of building up our network involves finding the right mix in terms of both retail partners and parcel lockers, with both options presenting their own unique challenges.
Acquiring retail partners involves a change management process to persuade partners on the benefits of signing up to offer parcel pick up and drop off services. With parcel lockers, each standalone system could potentially cost tens of thousands of dollars to purchase and operate, making them a costly investment.
Speaking of retail partners, how does Ninja Van collaborate with retailers and marketplaces in offering collection points to consumers ?
Eugene Huang : There are two ways we collaborate with retailers and marketplaces: 1. offering manned retail points as a collection point option, and 2. working with marketplace platforms to see what kinds of incentives we can offer to encourage their consumers to opt for delivery via a collection point.
As for the first point, manned retail points are a strong alternative to lockers because they offer lower fixed costs and are a quick-to-scale solution. The additional foot traffic to these retail points generated by parcel pickups also makes these types of partnerships a win-win solution for retailers.