Efficiency Unlocked: 6 Ways Locker Automation Transforms Industrial Distribution

Manual order fulfillment is resource-intensive and time-consuming, impacting both labor costs and productivity.

Full Parcel Locker125
Quadient

Distributors face intense competition within a fluctuating economy. Rather than focusing solely on product variety, distributors are now prioritizing exceptional services that offer speed, convenience and efficiency. Customers expect faster omnichannel services, which represents a challenge for distributors that are already grappling with increased labor costs and outdated manual systems. Automating the distribution counter with smart lockers offers an innovative solution to streamline order fulfillment and returns, providing on-demand access to critical materials.

Smart lockers: an overview

While most people think of smart lockers as a place where consumers pick up an Amazon purchase, distributors are finding out that smart package lockers have broad applications that benefit their operations and customer experience. The use of automated locker solutions, featuring oversized, customizable configurations, has accelerated in recent years—and is meeting the growing demands for always-on pickup and returns. 

Smart lockers offer secure, 24/7 delivery of extra-large and bulky goods that increase operational efficiency for distributors. Composed of both intelligent hardware and software, lockers are equipped with advanced technologies such as barcode scanners and tracking systems to provide a contact-free experience. They offer a range of benefits, including real-time pickup notifications, enhanced security through access codes or mobile app integration and adjustable compartments to fit various product sizes. Speed is a key advantage. Customers can retrieve or return a package in less than 30 seconds. Purpose-built for warehouses and distribution centers, smart lockers enhance operational efficiency by allowing customer service associates to attend to matters that require a human touch, minimizing lost items or orders and enabling seamless and contactless delivery of industrial goods.

Who’s using smart lockers?

Leading global distributors, with product offerings in the millions, are already driving ingenuity by integrating locker automation. Serving verticals like HVACR, plumbing, electrical and building supply, successful distributors play a critical role in helping trade professionals avoid glitches and stay on schedule with their projects. Manual processes, which currently dominate fulfillment counter staff, are no longer adequate for meeting the needs of contractors. In the quest for enhanced customer experiences, distributors are seeking ways to improve the end-to-end process with new measures like expanded business hours and hassle-free pickup and returns.

Driven by the explosive growth of e-commerce, research indicates that a distributor’s best option for remaining competitive is through the greater use of technology. In a study from Boston Consulting Group, investing in digital self-service tools for customers was cited among the top five ways distributors are reinforcing their market share. And growth is on the horizon for distributors who embrace new technologies: The global market size is projected to reach $12.39 trillion by 2033, growing at a CAGR of 4.39% from 2024 to 2033.

Locker technology is transforming operations for industrial distributors in these six ways:

1. Delivering around-the-clock accessibility

Industrial distributors face competition from digital entrants and big-box retailers who offer extensive product ranges and convenient, automated order collections. Customers often need access to supplies outside of standard hours due to the nature of emergency repairs, shifting project deadlines and after-hours projects. Smart lockers equipped with 24/7 access are a game-changer, allowing customers to collect materials whenever needed, preventing business bleed. 

Locker automation addresses this gap, strengthening distributor relationships with contractors by exceeding their expectations for availability and speed. Automated lockers allow contractors to place orders online, receive notifications when their items are ready and retrieve their materials any time, day or night.

2. Strengthening customer loyalty with automated fulfillment and returns

For industrial distributors, maintaining customer loyalty is paramount. The flexibility offered by automated lockers keeps contractors engaged by providing a streamlined workflow for their projects and unparalleled access to materials. Manual order fulfillment is resource-intensive and time-consuming, impacting both labor costs and productivity. By integrating locker technology, distributors automate the fulfillment process. The workflow is seamless, freeing up staff and reducing long wait times at the counter. Once an order is placed online, staff places it directly in a locker, the customer receives an order-ready notice and quickly retrieves it, bypassing checkout lines.

On the return side, the process is equally efficient. A customer initiates a return online and receives a return barcode. The customer simply scans the barcode at the locker, places the item inside and leaves—all without ever waiting at a counter or burning through staff time. A smart locker solution eliminates multiple steps, cuts labor costs and expedites returns processing.

3. Meeting industry-specific needs with customization

Automated lockers cater to the specific demands of industries like HVACR, plumbing and electrical supplies by providing customizable configurations. Oversized lockers can handle everything from small parts to large, bulky items like water heaters, sheets of drywall or up to 11-foot lengths of pipe and conduit, giving distributors an edge over systems primarily designed for smaller consumer packages. The lockers’ versatility extends to weather-resistant outdoor configurations, allowing for 24/7 access in a secure and convenient format.

4. Fortifying security measures without compromising flexibility

High-value items like building materials and equipment may raise security concerns, especially in areas with higher crime rates. However, advancements in locker technology address these challenges, with features like encrypted digital codes, timestamped proof of delivery and integration with enterprise resource planning (ERP) systems for real-time tracking. Additionally, reinforced steel construction, UV-rated screen technology, programmable lighting and cloud-based video surveillance add to security in outdoor locations. These robust security measures provide peace of mind for distributors, allowing them to extend flexible services without compromising the safety of stored items.

5. Bolstering return on investment

Industrial distributors operate on thin margins and are pressed for ways to improve processes. Smart lockers provide a two-fold ROI by reducing delivery costs and freeing internal resources for other roles, enhancing efficiency beyond mere cost-neutrality. Additionally, distributors can reduce inventory downtime through quick returns facilitated by locker systems.

6. Leveraging existing ERP systems

Smart locker software can integrate seamlessly with existing ERP software. The most advanced locker options offer extensive infrastructure maintenance support and control. Integrating lockers with ERP software not only streamlines the fulfillment and returns processes, but it also generates powerful business intelligence. Data from locker transactions provide insights into peak usage times, customer preferences and inventory turnover. This invaluable data helps distributors optimize stock levels, predict demand trends and improve supply chain efficiency, ensuring a high level of service that benefits both the distributor and the customer.

Smart locker automation is becoming indispensable for tech-savvy industrial distributors, providing the flexibility, efficiency and convenience needed to meet evolving customer expectations for on-demand service and transparency. Through a streamlined pickup and returns process, distributors can enhance customer loyalty, reduce operational costs and maintain a competitive edge.

Joe Barbagallo is a distributor/wholesale enterprise executive at Quadient. Learn more at parcelpending.com.

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