Inside Logistics

PUDO launches London, Ontario pilot

Intended to consolidate regional parcel distribution and staging and reduce costs, friction, and last mile inefficiencies

February 26, 2018

TORONTO – PUDO Inc., North America’s first carrier-neutral Pick-Up Drop-Off Network, is launching what it call a “disruptive” pilot project designed to shave cost and time from the typical delivery cycle.

“In this pilot, one of our London, Ontario, PUDO Points acts as a 24/7/365 community staging hub for the 3PL partners of popular online retailers, connecting them with local delivery companies,” says PUDO CEO Kurtis Arnold.

“What this does in effect is turn the conventional parcel delivery model on its head. It enables local delivery companies to quickly and efficiently manage last-mile logistics, and when necessary return first-attempt-failed deliveries to the PUDO Point for customer pick-up, or cost-efficient re-delivery.”

The efficient and secure delivery of merchandise purchased on-line has not kept pace with the explosive growth of e-commerce in North America, and online retailers, 3PL and fulfillment warehouses, logistics and courier companies, and consumers are paying the price – in both time and money.

Courier and logistics companies competing for e-commerce delivery market share are running a race to the bottom in an environment where up to 35 per cent of residential consumers don’t answer the door; the costs of re-delivery crush any profit potential; and porch piracy of unauthorized doorstep dropped parcels exceeds $33M million dollars per year.

Retailers and consumers are re-considering the benefits of free or low-cost shipping, when the price has to include the costs associated with product replacement, not to mention the lost time and inconvenience.

“The parcel delivery model that challenges North Americans today is the natural evolution of standard mail, and until very recently, it worked just fine. But now it is breaking in several places along the supply chain, causing crippling friction and bottlenecks. PUDO is simply the necessary next generation in the inevitable evolution of parcel delivery and also now, returns – driven by e-commerce, changing demographics, consumer expectations, and economics,” concludes Arnold.

PUDO uses plug and play technology to link existing bricks-and-mortar locations like community-based convenience stores, with consumers and retailers, to form a network. By becoming part of the company’s network, merchants act as Pick-Up, Drop-Off (PUDO) locations for e-commerce shipments.

PUDO software provides consumers with a ‘clickable’ option to ship their e-commerce parcels to an ‘at-home away from home’ PUDO Point, so they can pick up at their convenience, and if return shipment is necessary for any reason, both the consumer and the retailer can be assured of a quick and frictionless transaction.