A standard European parcel label should make the last mile in e-commerce more efficient. GS1 Netherlands argues that. Carriers now use their own system of labelling and identification. This is inflexible and inefficient. GS1 therefore gives four reasons to work with a standard parcel label in online delivery.
- Improved traceability of cross-border deliveries.
A label ensures that all parties in the supply chain – from manufacturer to consumer – can track and trace the parcels. “That works fine in itself if a carrier is involved in both delivery and return shipments. However, things go wrong when multiple carriers are involved; in such cases, it’s often no longer clear where the parcel is,” says innovation manager Frits van den Bos. “By standardising the label used in parcel delivery, the parties involved can more easily ensure that it remains clear to the consumer where a parcel is, regardless of who is transporting it.” - Companies can more easily expand their services, for example by engaging specific carriers separately for items such as washing machines (which need to be installed) without this requiring any changes to the parcel’s coding.
- Logistics costs weigh heavily for online retailers, especially crossborder. Now, when parcels are transferred between carriers, new labels often have to be stuck as well. This means extra handling with extra costs and extra risk of errors. This is a shame because Asian competitors - despite the long distances - can deliver for free, and thus have an edge. "Companies like Alibaba can deliver for free to European consumers. Why can it be free from China and not from Hoofddorp, consumers will ask. Ultimately, consumers want free delivery or minimal delivery costs. Well, that is only possible with a standard parcel label," Van den Bos argues.
- As an online retailer, you want to be able to choose from the best range of carriers without having to worry about the additional IT costs involved in switching. A standard parcel label and the accompanying data interface make this possible.
Parcel label available in early 2017
The European Commission has asked postal operators to reach new agreements within the European standardisation body on the use of standards in the parcel delivery market. The EC sees it as a prerequisite for achieving a European market for e-commerce. The standards must be in line with the standards used by parcel shippers. A draft of the parcel label is currently before the CEN and national authorities. Van den Bos expects the label to be available in early 2017.
Carriers still hesitant
GS1 expects carriers to be cautious about the new label. This is because they will have to adapt their systems, which costs money and takes time. Many carriers also believe they benefit from having their own system, as a way of defining their market territory. “It’s only natural that they’re still a bit wary,” says Van den Bos. According to GS1 Netherlands, the benefits for their customers – the consumer and the online retailer – more than make up for this.
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