According to Konstantinas Fedorcovas, the Head of Technology at Venipak, spending a long time standing at the parcel terminal while entering the recipient’s address and other data by hand is an outdated practice, although still common in the market. As explained by Mr Fedorcovas, an expert in his field, this practice is being replaced by QR codes and other solutions and technologies that improve the user experience and make the process of sending a parcel easier, more modern and more user-friendly.
Mr Fedorcovas has noticed that e-commerce is growing every year and the number of parcels being sent is increasing. With the growing popularity of picking up parcels at a parcel terminal without being tied to a specific time and location, a combination of different technology solutions can improve the customer experience and save time.
Minimising steps in the user experience
Speaking about the increasing popularity of artificial intelligence today, Mr Fedorcovas revealed that most of the artificial intelligence solutions and algorithms that optimise various processes, such as delivery times or calculating the route of a courier, have been used in the logistics industry for a long time.
“In a busy period like last November, when we had to deliver more than one million parcels, efficient automation solutions in logistics help to simplify and facilitate the whole process,” he explains.
Mr Fedorcovas emphasises that managing expectations is crucial for customers today: “They need to know how long it will take for the parcel to arrive and be delivered, which is not always clear when shopping online. The timing of the delivery is particularly important for those who opt for home delivery and adjust their schedules accordingly.”
Mr Fedorcovas stresses that the consumer’s shopping process must have as few steps as possible. “It’s frustrating for people to have to re-enter their contact details every time they shop. Platforms that collect key information and use it for future shopping, while meeting all data security requirements, have potential,” he notes.
Mobile apps – the way to a better user experience
Mr Fedorcovas believes that a unified solution from phone manufacturers that allows users to make a payment at all e-shops once they have entered their details could improve the user experience. Mobile apps could also provide such functionality since their popularity continues to grow rapidly – according to TechReport, the average smartphone user uses at least 10 apps per day and 30 apps per month. “I think in the future there could be an integration that allows the user to create their own profile once so that they can easily shop in any e-shop. This would make it possible to provide all the information in one step, which would save time for the user,” he says.
As for mobile apps, Mr Fedorcovas notes that they are not very popular among Lithuanian parcel companies. “The reason is probably that we have more than one parcel company and our customers don’t want to have every company’s app on their phone. The shopper wants convenience and speed,” he notes. “The popularity of apps could be driven by brand loyalty or additional functionality.”
When naming these functionalities, Mr Fedorcovas mentions the possibility of sending a parcel without a label, automatically setting its size, reserving a parcel terminal for several hours, paying for a parcel via the app using a bank card, selecting a saved address or checking the status of a parcel, among others.
According to Mr Fedorcovas, such solutions would be useful for consumers who frequently send parcels to the same place: “In this case, it would be just a matter of clicking a few buttons to choose the recipient, taking the parcel to the parcel terminal and scanning the QR code, eliminating the inconvenient experience of pressing the screen of the parcel terminal with frozen fingers while entering the address and other data. I think it’s an archaic, obsolete process.”
Same-day delivery: very popular in the US, less popular in Lithuania
Speaking about the habits of shoppers in different countries, Mr Fedorcovas notes that same-day delivery is very popular in the United States, while in the Baltic region, it is growing in popularity, but not so much.
“I think it’s something to do with our online shopping habits – for example, we buy our food online from the big supermarket chains, which take care of delivery themselves. As for other goods, there is no massive demand from our customers to get them here and now,” he says. Mr Fedorcovas notes that Lithuanian shoppers calculate delivery costs and are reluctant to buy single, low-cost items online, as the delivery costs are added to everything.
Another reason why same-day delivery is so popular in the United States is that there are large e-commerce players that can offer a wide range of products in one place, and shoppers often choose to pay a subscription fee that guarantees free delivery.
“There are no large e-shops in Lithuania where a critical mass of shoppers would agree to pay a subscription fee to save on shipping costs,” he explains. “However, looking ahead, I believe that same-day delivery will grow in popularity and relevance in the Baltic region.”
Strategic directions – optimising costs and improving customer experience
Summing up the past year at the company, Mr Fedorcovas notes that a new customer self-service system was launched, a service for sending parcels without labels was introduced and a number of improvements were made to the logistics system. It also includes parcel management functionality and several other new features coming soon.
One of the most important achievements within the company is the optimisation and centralisation of projects, products and processes. “Whereas in the past, each department had its own person working on a specific process, now we have all the professionals in one place. This allows for a more efficient sharing of experience by centralising the process when it involves all departments,” he says.
This year, the international parcel company will focus on the integration of self-service, which allows convenient parcel management with e-shops, the integration of international carriers, and, according to Mr Fedorcovas, one of the strategic directions will be the optimisation of costs and the improvement of customer experience. “Cost optimisation will be relevant, from informing the consumer through various channels about the progress of the shipment to optimising the logistics processes so that the delivery is faster, cheaper and the consumer’s experience is better because all the solutions are primarily focused on them,” Mr Fedorcovas says.