Outlook for parcel delivery future: rise of OOH solutions

Gary Winter, Vice President of Global Strategic Initiatives at Parcel Pending by Quadient, has outlined predictions for the year 2025, emphasising significant shifts in last-mile delivery influenced by changes in logistics, retail, and real estate sectors.

Winter predicts that the rise in low-cost imported goods and second-hand resale markets will exert increased pressure on shipping costs and out-of-home (OOH) delivery systems. "In 2025, rising package volumes from low-cost retailers such as Shein, Temu and TikTok shop, alongside increased activity on resale platforms like Vinted, will push carriers to adapt to shifting consumer needs in last-mile delivery," he noted. Winter anticipates that carriers will gravitate towards more cost-effective alternatives to traditional home delivery to meet the growing demands of both buyers and sellers.

He elaborates that as demand for affordable goods continues to rise, OOH delivery options such as parcel lockers or pick-up points will become integral components of the delivery infrastructure. "These OOH options will offer buyers and sellers convenient alternatives to avoid porch pirates, missed deliveries, and inconvenient post office queues," Winter stated. He also highlighted the potential growth in consumer awareness regarding the convenience of parcel lockers, foreseeing an expansion in locker networks and possibly new roles such as 'Out-of-Home Directors' to manage these expansions.

Winter further discusses the potential impact of new government homebuilding targets on OOH delivery systems, particularly as the government plans to construct 1.5 million homes over the next five years. He argues that increasing the number of homes must be matched by strategies that enhance their attractiveness to buyers. "Simply increasing the number of homes won't be enough – these developments must include desirable features and amenities to create the best possible environment for residents," Winter asserted.

He suggests that the government incorporate OOH delivery options, such as parcel lockers, into new housing developments, especially affordable flats, to enrich the residential living experience. "Houses should include features like parcel collection and drop-off points, which could significantly reduce the number of delivery vehicles entering residential areas, resulting in quieter, safer streets," he proposed. This feature has the additional benefit of providing convenience and security for residents collecting and dropping off packages, without needing to worry about parcel theft, which is a particular concern in blocks of flats.

Winter believes these OOH delivery systems will not only serve the residents but also benefit carriers by streamlining their operations and reducing logistical challenges in complex residential environments. This approach, he suggests, could support the creation of family-friendly neighbourhoods where children can safely play, aligning the developments with modern living demands.