The eCommerce boom has brought a lot of challenges for retailers, especially when it comes to last-yard deliveries. As the package delivery volume skyrockets, retailers and shipping companies find it hard to meet customer expectations. Consumers nowadays expect on-time deliveries with good communication and cheaper rates.
Here, pick-up and drop-off (PUDOs) have emerged as a potential solution to the last-yard delivery problems as it allows convenient, efficient, and cost-effective deliveries for both retailers and consumers. After all, delivering 100 packages to one PUDO location is more efficient than delivering 100 parcels to 100 different addresses. Moreover, it gives the customer more control and choice, reducing the pressure on last-mile delivery.
What is a PUDO, and how can it transform the last-yard future? In this blog, we will explore this parcel delivery option in detail.
What Does Pick-Up and Drop-Off (PUDO) Mean?
Just like BOPIS (Buy online, pick-up in store) and BOPIL (buy online pick-up in locker), PUDO is another acronym that you should add to your retail vocabulary. PUDO point is the designated area where customers can pick-up their orders or drop-off returns. Some common PUDO locations include parcel lockers, local stores, and retailers.
The Benefits of PUDO
PUDOs have numerous benefits for retailers, eCommerce business owners, and customers. Some notable benefits include:
- Retailers with PUDO zones or smart lockers within the stores can increase their sales and customers. One in three PUDO users makes an incremental purchase while picking their items.
- Online retailers can earn customer loyalty as they offer multiple delivery options to the customers.
- Consumers can easily pick-up or return their items without any hassle.
- Retailers can save money by avoiding the extra courier cost of home delivery and missed or failed delivery.
- PUDO can help you increase revenue by streamlining the delivery and returns process.
How Is PUDO Transforming Last-Yard Delivery?
Redirecting deliveries to PUDOs improves last-yard delivery efficiency and convenience. Mentioned below are some of the ways PUDOs boost last-mile and last-yard efficiency.
No Waiting Time
Consumers nowadays hate to wait for their deliveries and every missed delivery results in customer loss. With pick-up and drop-off (PUDO), customers can pick-up their items conveniently at their preferred time slots. It reduces the waiting time to zero and eliminates the risk of a missed delivery.
Higher Flexibility and Convenience
Pandemic has changed customer expectations considerably. They demand various fulfillment options, a safe shopping experience, and high delivery efficiency. Therefore, retailers must enhance flexibility in their supply chain and meet the varying consumer demands. PUDOs help customers retrieve or return parcels at their convenience.
Safe and Secure Package Storage
The customer's experience in last-yard delivery is determined by safe and secure package storage. Leaving the package outside the recipient's door when they are not available is not safe and can lead to parcel theft. PUDO ensures a safe location for package storage.
Simplified Reverse Logistics
Reverse logistics management for huge delivery volumes makes last-yard logistics ineffective. As the number of missed deliveries increases, the reverse logistics cost increases. With the PUDO network, customers get an option to return the item to the seller, which reduces the reverse logistics cost and provides free return services. In this way, you can simplify your reverse logistics operations.
How to Maintain a Successful PUDO Network?
Retailers can build an effective PUDO network by deploying modern PUDO technology that helps them manage inventory and locate the correct item when a customer comes for package retrieval. Here, the PackageX platform can help you.
How?
Let's find out!
You can activate any physical and retail location for modern logistics fulfillment through PackageX apps and APIs for Pick-up and Drop-off (PUDO), Buy Online Pick-up in Store (BOPIS), and Ship from Store Operations.
How Can PackageX Help PUDO Locations?
PUDO locations can seamlessly integrate PackageX Receive into their existing systems to provide self-service package pick-up. Recipients can pick up their packages from any PUDO point while maintaining a complete chain of custody that ensures the safety of the packages and reduces the chances of lost or misplaced packages.
With PackageX Inventory, you can streamline inventory workflows for your PUDOs to increase productivity, efficiency, and visibility. It helps you keep a log of all the parcels entering or leaving your PUDO points.
Similarly, PackageX Ship will assist you in generating shipping labels from national carriers and on-demand couriers within seconds. Moreover, you can build custom apps for your PUDO logistics operations using our APIs.
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Frequently Asked Questions
Some frequently asked questions about PUDO can further help you understand the phenomenon better. These questions include the following:
What is PUDO delivery?
Pick-up and drop-off (PUDO) is any area designated for customers to pick-up packages or leave parcels. PUDOs are typically used for receiving eCommerce orders and dropping off returns. PUDO delivery service is often provided by local stores, supermarkets, retailers, and smart lockers.
What is a PUDO zone?
PUDO zones are curbside locations solely used for loading and unloading goods. They can be staffed counters at an existing business or unstaffed lockers located anywhere. A PUDO zone can serve one or more businesses, and a vehicle can only stay at a PUDO point for as long as it takes to load or unload the packages.
Can I track PUDO parcel?
Yes, you can track PUDO parcels just like other parcels that are out for delivery using our real-time parcel tracking app.
Conclusion
Pick-up and drop-off (PUDOs) are an efficient way to ensure successful last-yard delivery. Customers nowadays prefer to click-and-collect, which has resulted in the establishment of new PUDO locations in small stores and supermarkets. However, digital support is critical to maintaining PUDOs infrastructure. You must adopt a modern and intuitive technology that offers real-time visibility, automated notifications, and inventory management solutions to scale your PUDO operations.
