The ever-increasing demand for e-commerce deliveries pushed UPS and FedEx to invest billions into upgrading their networks. A big part of that upgrade is overcoming the challenges of “last-mile delivery.”

UPS recently announced an initiative to test “smart lock” technology to automate package delivery in hundreds of apartment buildings in New York City. It allows landlords to create worry-free package deliveries and decreases repeat delivery attempts for UPS.

Smart lock allows delivery drivers to drop multiple packages at secure locations—like business and apartment lobbies, front desks and package rooms—inside multi-family buildings. The goal is to reduce package theft, decrease repeated delivery attempts and make the last-mile cost-effective and convenient for the carrier while honoring their business commitments and customer satisfaction.

Using a handheld device, UPS delivery drivers receive unique access credentials for each building on their route and  smart lock creates a traceable record every time a driver enters a building. There are several clear advantages:

  • The shipper saves money by turning a residential delivery into a commercial one (perhaps avoiding  residential surcharges).
  • The carrier makes more money delivering more packages to one stop, and avoids repeat attempts if someone isn’t home.
  • The customer can get their package at their convenience and without worrying about theft!
  • The business hosting the locker drives more foot traffic to their business increasing local small business exposure.

Though this provides some relief for UPS and the pains they experience with last-mile – as well as peace of mind for customers and business shippers, it wouldn’t be shocking if UPS added a smart lock delivery fee to help meet their revenue goals. The data collected will show their time and money savings and guide their strategy on how to generate more revenue by adding another surcharge to your invoice. Don’t let surcharges, fees and rate increases weigh-in on your profitability. Let Refund Logistics handle the heavy lifting so you’re free to focus on your continued success.

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Do you want tailored insights into your business on how you can start saving money and ensuring high-quality shipping for your business? Contact Refund Logistics so we can carry the load of your business’ shipping needs and  secure your well-deserved refunds!