Out-of-home deliveries solve logistical problems for retailers, carriers and consumers, and will soon make up a significant component of last-mile, Marek Rozycki, managing partner of consultancy group, Last Mile Experts said in his keynote presentation at the Future of PUDO Conference in Sydney last week.

“Many consumers feel that home delivery methods are outdated and in turn, there has been growth in parcel collection point networks as they guarantee successful first-time deliveries and increase delivery density, reducing costs for carriers,” he said.

The expense of last-mile logistics can account for up to 41% of supply chain costs for retailers, according to a recent survey from Capgemini Research Institute.

“Out-of-home delivery is becoming crucial because it offers a virtually guaranteed first-time delivery solution and is currently the only way to manage massive volume growth without excessive service failures and costs,” Rozycki said.

He expects lockers, collection point networks and click-and-collect to see the most growth in Australia. Currently, lockers are facing potential IT and physical security issues such as power outages and vulnerability to hackers, intrusion, vandalism and robbery, but this could be overcome with video cameras, as well as movement and vibration sensors.

Collection point networks offer proximity to consumers, familiarity and simplicity. Hubbed has grown to 2,000 locations around the country since launch in 2014, has recently launched in New Zealand and is set to expand into Asian markets this year. Rozycki said a significant part of the success is its carrier agnostic approach and easy-to-use processes, systems and tools.

Hubbed founder and CEO, David McLean said customers expect higher levels of service and choice when it comes to e-commerce. “They are demanding more control post-purchase, and this includes delivery and collection. This coupled with demand for more environmentally friendly options means sustainable shopping extends to sustainable shipping.”

In-store click and collect offerings also have space to grow as consumers become increasingly environmentally conscious and embrace greater control and convenience. A recent UBS report found that 62% of consumers spend more when they use click and collect.