The Definitive Guide to Smart Lockers
In our definitive guide to smart lockers, you will learn everything you need to know about these state-of-art IoT devices. From how they work to the problems they solve, we leave no stone unturned so you can move forward confidently in selecting the right solution for your needs.
Topics
- Introduction
- What is a smart locker?
- Who are smart lockers designed for?
- How do smart lockers work?
- Smart locker hardware
- Smart locker peripherals
- Smart locker software
- Smart locker wraps
- 15 smart locker benefits
Introduction
We’ve all used a locker at some point during our lives. As teenagers, we would gather around our high school locker to get the latest gossip. When we visit the local gym, our clothes and personal effects are kept safe while we burn some calories. And when at a mall, amusement park, or other public location we might spend a couple bucks to hold our belongings for a few hours.
Most lockers we are familiar with use a traditional lock-and-key, padlock, or other mechanical devices to open or lock a compartment. But like many other devices, today’s lockers are SMART! Through innovation and technology, smart lockers are taking the logistics world by storm and revolutionizing how we send, store, and retrieve goods of all shapes and sizes.
What is a smart locker, and how do smart lockers work? We answer these questions and many more in our Definitive Guide to Smart Lockers.
What is a Smart Locker?
We’ve all used a locker at some point during our lives. As teenagers, we would gather around our high school locker to get the latest gossip. When we visit the local gym, our clothes and personal effects are kept safe while we burn some calories. And when at a mall, amusement park, or other public location we might spend a couple bucks to hold our belongings for a few hours.
Most lockers we are familiar with use a traditional lock-and-key, padlock, or other mechanical devices to open or lock a compartment. But like many other devices, today’s lockers are SMART! Through innovation and technology, smart lockers are taking the logistics world by storm and revolutionizing how we send, store, and retrieve goods of all shapes and sizes.
What is a smart locker, and how do smart lockers work? We answer these questions and many more in our Definitive Guide to Smart Lockers.
Who Are Smart Lockers Designed For?
There are an endless number of ways smart lockers can be deployed. But, generally speaking, smart lockers are owned and operated by four types of organizations: retailers, property managers, logistics companies, and commercial & non-profit entities. Each organization may use its smart locker to achieve a singular objective or tackle various challenges.
Retailers & eCommerce
BOPIS
Returns
Last-Mile
Property Management
Condominiums
Apartments
Office Buildings
Commercial & Non-Profits
Asset Management
Parts Exchange
Rentals
Logistics & Cargo Companies
Couriers
Airlines
Post Offices
Retailers & eCommerce
Smart lockers afford retailers, both online and traditional brick-and-mortar stores, the ability to vastly improve the customer experience while lowering their own operations costs. For example, traditional retailers can install smart lockers near the front of their store to make the process of product pickup and returns faster than visiting the service counter. E-commerce retailers are placing branded smart lockers strategically in publicly accessible locations to increase brand awareness, move their products closer to their customers, and facilitate last-mile deliveries and product returns.
Property Management
Apartment and condominium complexes, universities, and office buildings suffer from a staggering number of daily package deliveries. And the volume of deliveries is only expected to increase. For example, according to a U.C. Irvine study, every parcel received results in 10 minutes of lost productivity by on-site staff. Today, smart lockers are installed to automate the entire parcel management process. Smart lockers eliminate lost packages, prevent couriers from wandering buildings, save cost, and add an amenity that users love!
Commercial & Non-Profits
Many organizations have employees reliant on expensive equipment or who regularly move valuable assets between departments. Additionally, there are locations with many visitors, such as volunteers for a non-profit. Here, personal items are stored safely during the visitors’ time on the property. Organizations can deploy smart lockers for any situation to safely store things like electronics, photography equipment, or time-sensitive materials. When connected to a database, an item’s location records are recorded in detail.
Logistics & Cargo Companies
Whether a local courier or an international airline, smart lockers solve many of the ilks logistics companies face in today’s ever-changing market. Installing smart lockers reduce the cost of missed deliveries, extend a courier’s reach into the last mile, can capture business now sent to your competitors, or provide pickup points for your fleet. With first and last-mile costs continually increasing with no signs of letting up, smart lockers are quickly becoming cost-efficient and environmentally friendly solutions.
How Do Smart Lockers Work?
Smart Lockers can manage parcel deliveries in a residential building, assist in moving assets across an organization, or provide the convenience of anytime-pickup for retail customers.
Regardless of the use case, the process in which items are deposited, stored and retrieved from a smart locker remains largely the same.
Using a PIN code or scannable barcode recognizable by the software, the appropriate locker slot is made accessible and the item deposited.
Then, iImmediately after the slot door closes, the smart locker’s software sends an email and/or text message with a pickup code to the intended recipient. The recipient simply scans or enters their code and the slot automatically opens allowing the item to be retrieved.
The above graphic represents a typical residential use case in which a courier deposits a parcel into a smart locker for a resident to retrieve later. This is only one of the dozens of potential ways smart lockers receive and store parcels securely. RFID and Bluetooth technology are also becoming popular communication methods with smart lockers. In addition, more advanced systems, such as facial recognition, are coming online for smart lockers storing high-value or restricted items.
Smart Locker Hardware – Safe & Secure
Much more than just a box, smart lockers are robust pieces of equipment. Each is designed for one goal: safely storing items between the time they are deposited and retrieved. While how items are deposited or retrieved varies depending on the specific use case, smart lockers are built using similar components.
Cabinets – Smart locker shells are manufactured from steel, plastic, and even bamboo. Choose a material that works best for the environment the locker will be located in.
Electrical – Most smart lockers today require only a 110V connection. Solar and battery-powered systems are also becoming more popular, serving remote or unpowered locations.
Coating – Most manufacturers offer dozens of standard colors. For added protection, coatings are applied to lockers, such as anti-graffiti, anti-microbial and anti-corrosive sprays.
Electrical – Most smart lockers today require only a 110V connection. Solar and battery-powered systems are also becoming more popular, serving remote or unpowered locations.
Smart Locker Peripherals – Tools & Tech
Smart lockers can include a variety of peripherals to improve the customer experience, collect additional information, or meet unique use case requirements. The options are almost limitless in regards to what type of add-on equipment you can include. Here are the most commonly requested peripherals on today’s best smart lockers.
1. Security cameras – Deter tampering and vandalism with top-mounted security cameras that record events at the locker 24/7 using an internal NVR.
2. Display screens – Promote your brand and products by tapping into advertising networks to generate additional revenue.
3. Touchscreen display – Initiate at the locker with the push of a digital button. Flash ads can also be displayed to increase revenues.
4. Barcode scanner – Read codes on packages, emails, or text messages to initiate deposits or retrieve packages.
5. Commercial keypad – Manually enter barcodes while also providing tactile functionality for the visually impaired.
6. Thermal label printer – Produce a courier shipping label or a physical receipt to confirm deposits, retrievals or purchasesr.
7. Battery backup – Add peace of mind by adding battery backupto provide continue operations during power outages or spikes.
Available but not shown in image:
RFID Reader – Organizations can link identifiable information within RFID tags to items or personnel to seamlessly allow access to smart lockers and track the movement of assets.
Credit card reader – Accept payment for services offered at the locker.
Front-facing camera – For products requiring visual personal identification or added security, cameras can be mounted above the touchscreen monitor to record anyone trying to access the locker.
Building access scanner – Eliminate the need to contact a resident or tenant with smart technology that can identify couriers outside and automatically open the building door to allow entry.
Smart Locker Software – Brains & Brawn
The software powering today’s smart lockers supports their ability to meet a wide range of use cases and today’s logistical challenges. While every vendor is different, those whose software is customizable and malleable can keep their locker’s functionality up to date. More importantly, solutions can be designed to meet a customer’s exacting needs, eliminating the need to make compromises on their chosen smart locker system.
The Application Programming Interface (API)
APIs act as an intermediary that allows two applications to talk to one another. This means smart lockers can connect with most any external system including property management software, inventory management programs, and point-of-sale systems.
With connectivity comes the ability to do amazing things. From automating parcel management in residential buildings, to reducing the environmental impact of last-mile logistics, smart lockers and their APIs are revolutionizing logistics in unimaginable ways.
Smart Locker Wraps – Looking Good
Any person involved in marketing will immediately see the smart locker as a potential giant billboard. The white space available is a blank canvas for anyone looking to promote their brand – or someone else’s, for that matter. In addition, publicaly installed smart lockers, such as those located in malls and transportation hubs, offer the opportunity to drive additional revenue by leasing advertising space on the smart locker.
Retailers have the option of promoting their brand with beautifully created wraps. Additionally, retailers are selling advertising space on their smart lockers to brands that they carry in their stores. For example, a pet store can offset some of the smart locker’s cost by selling advertising space to a major pet food brand.
Branding isn’t restricted to retailers and brands either. Residential, universities, and offices can have customized wraps applied to match the aesthetics of their location. In addition, public entities can use the white space to promote their city or as a means to communicate community information to passers-by.
15 Benefits of ParcelPort Smart Lockers
The advantages of deploying smart lockers are numerous. While many of the benefits are obvious, there are many more that smart locker owners and operators come to appreciate after their systems begin serving their intended audience. From the workplace to Park Place, and everywhere in between, here are 15 benefits of smart lockers that make them a fantastic option for parcel and asset management.
#1 Contactless – Locker slots can open automatically, while smart locker technology allows most actions to happen via mobile phone and the onboard barcode scanner,, preventing the transference of pathogens.
#2 Cleanliness – Not only does a contactless smart locker reduce the number of touchpoints, but the build material is easy to clean and sanitize.
#3 Convenience – Residents, tenants, managers, online shoppers, and even couriers love the 24/7 convenience smart lockers provide for both making deposits and retrieving delivered packages.
#4 Security – Say goodbye to porch pirates taking packages left in the open or parcels being damaged from the elements. Smart lockers are built tough and are able to protect even the most valuable items from theft or damage.
#5 Space saving – Smart lockers require a much smaller footprint compared to parcel rooms and other alternatives. And with active parcel management, slot usage can be optimized to reduce the overall size of a parcel storage device than a traditional analog system.
#6 Time saving – Anyone using a smart locker will save time. Couriers no longer need to visit every floor in a building and property managers do not need to manage parcels. Instead, residents can pickup their deliveries 24/7, while asset managers do not have to be onsite to deliver or collect items. And the list goes on!
#7 Automated – Once an event occurs at the locker, the software can automatically notify the appropriate parties to take action. The most common example in a residential setting is when a deposit is made. Once the locker slot is closed, an automated email and SMS text is sent to the recipient as notification their parcel has arrived and is ready for pickup.
#8 Customizable – Whether you require all large slots, or software needs to be modified to deliver specific features, smart lockers can be designed and manufactured to meet your specific use case.
#9 Money saving – Property managers save upwards of 10 minutes per parcel by automating the management of deliveries with smart lockers, significantly reducing labor costs.
#10 Compliance – Specially designed software and various peripherals, such as front-facing cameras, allow for the delivery of highly regulated products without worrying about being out of compliance.
#11 Tracking – Asset managers love the smart locker’s ability to track the movement of assets in and out of the locker with real-time event management.
#12 API Integration – Seamlessly integrate with most third-party software such as property management software, point of sales systems, and inventory management programs.
#13 Accountability – In asset management use cases, all movement is tracked and tagged in real-time. This makes it difficult for employees, contractors, or vendors to “forget” returning an item or, even worse, think about stealing equipment.
#14 Productivity – Smart lockers can be deployed to streamline the repair of equipment, manage asset deployment, or facilitate the exchange of items across large geographic locations boosting productivity across an organization.
#15 Accessibility – Because of their small footprint, smart lockers can be placed almost anywhere. And since smart lockers are automated, they can accept deposits and allow pickups 24 hours a day, 365 days a year.
Configuring Your Smart Locker
Using off-the-shelf smart lockers is a fast and inexpensive solution. Still, in many cases, the device will not live up to expectations and could cost more in the long run.
Central to any smart locker design is estimating the expected turnover. In other words, how long are items expected to remain inside a locker slot before they are picked up and another deposit is made. This is true for residential parcel solutions, asset management, and retail BOPIS.
Optimizing your smart locker maximizes the turnover rate and, by extension, increases profitability and boosts the ROI. In addition, for residential and non-profit installations, proper configuration lowers the number of slots required, thus reducing the required capital investment and monthly service fee.
How Much Do Smart Lockers Cost?
Like any asset purchase, several factors determine the cost associated with purchasing. For smart lockers, costs can be broken down into three phases. First, when comparing one smart locker quotation against another, it is important to evaluate how each factor impacts the cost. Cheaper materials, for example, will lower the overall cost but at the expense of reducing the smart locker’s strength and ability to ward off tampering or adverse weather conditions.
1. Design and configuration: Smart lockers can be purchased “off-the-shelf” or be highly customized. For standardized use cases, such as residential parcel management, little to no additional cost is required to prepare a locker before installation. However, many retail applications or customer logistics solutions often require design considerations. For example, a retailer may wish to invest in creating beautifully designed custom wraps to promote their brand. While a regional courier may need customized software to meet the specialized nature of the products they move. The costs associated with design and configuration can range from $0 to thousands of dollars.
2. Production and manufacturing: This is the cost of the smart locker shell and all its components. The final pricing for a smart locker takes into account the following characteristics:
- Number of slots
- Number of columns
- Number and types of peripherals
- Application of any special finishes
- Type and strength of materials used
- Where the smart lockers are manufactured
The final pricing will be wholly dependent on the combination of these factors. Where the simplest smart lockers can begin at less than $5,000, some of the largest and most complex systems can quickly exceed $100,000.
3. Installation, maintenance, and support: The shipping cost will depend on where the smart lockers are manufactured and need to be delivered. On-site installations typically begin at about $1,000 for the average size smart locker. To ensure the software remains updated, provide 1-800 and/or email support, and a warranty, many smart locker vendors will charge a modest monthly service fee, usually beginning at $100 per month and increasing based on the total number of locker slots managed.
The Installation Process
Most smart locker cabinets are shipped preassembled. On site, service technicians are responsible for:
- Connecting the columns together
- Running and securing electrical components
- Installing any peripherals (cameras, scanners, etc.)
- Securing the system to the floor or wall
Testing all components and software
Average-sized smart locker systems typically take half a day to set up, test and initialize. Because there is limited need for any drilling or cutting, there is no need to worry about dust or extensive cleanup.
Smart Locker Maintenance
Although smart lockers are tough devices, they do require occasional maintenance. Where the system is located has a significant impact on how often and what type of maintenance will be necessary.
Smart lockers located indoors, such as those located inside residential buildings, will benefit from a thorough annual cleaning and testing of the individual components.
Outdoor smart lockers, especially those exposed to the elements, require close examination of the device’s fasteners and coating. Semi-annual inspections will help prevent corrosionfrom taking hold and potentially undermining the smart locker’s integrity.
Staying Compliant with Smart Lockers
One of the benefits smart lockers offer is their ability to help retailers and couriers comply with the various regulations surrounding the shipment of goods. But the smart lockers themselves also need to meet regulatory guidelines. The two most prominent compliance regulations in North America to be aware of are accessibility and safety. Before purchasing any smart locker system, ensure it meets all regulatory requirements in your area.
America Disabilities Act
Civil rights laws originally passed in 1990 prohibiting disability discrimination and setting standards for accessibility.
Accessible Canada Act
Passed in 2019, the act requires businesses to create accessibility plans and aims for a barrier-free country by 2040.
Underwriter Laboratories
Global safety certification company for products, facilities, processes or systems based on industry-wide standards.
Electrical Safety Authority
Regulates and promotes safety by working towards an Ontario where people can live, work and play safe from electrical harm.
Customized Smart Locker Solutions
With the right smart locker vendor, anything is possible! Smart lockers are helping airlines extend their cargo service offering, couriers eliminate second and third delivery attempts, and retailers create a unique and engaging experience for their customers. Whatever you can imagine, a customized smart locker can be designed to meet your goals. Here are just a few customizations businesses have implemented:
Rear fill – Increase deposit efficiency with rear access to locker slots, eliminating employees needing to individually scan and place items one at a time.
Pop-up lockers – Make an impact with a unique display using smart lockers where shoppers can interact with on-locker displays and pick up purchases in an instant.
Temperature control – Insulated, heated, and refrigerated smart locker options to keep food, pharmaceuticals, and other goods at the ideal temperature.
Two-factor authentication – Highly regulated or high-value item retrievals at a smart locker can be secured using two-factor authentication measures, including facial recognition, biometric scans, and multiple identification protocols.
Service company portals – Technicians don’t always have the equipment or parts needed to complete a job in their truck. Smart lockers placed throughout a community can securely store items and prevent trips back to the warehouse.
Battery and solar power – There has been a limited deployment of smart lockers relying solely on battery or solar power. However, the future is bright for these technologies to push forward and extend parcel service in the most remote locations.
Smart Locker Networks
The success of the smart locker in other parts of the world has often been supported by large investments by governmental entities or courier-specific service offerings.
For a smart locker network to become feasible across the vastness of North America, two critical components must be added to the mix.
#1 Smart lockers must be agnostic and provide for usage by dozens of couriers and other logistical partners.
#2 Smart lockers must offer multiple services to the community to drive revenue and maximize their utilization.
Fortunately, companies like ParcelPort are building such networks in metropolitan areas across North America. Soon, your nearby smart locker will be used to pick up online orders, submit product returns, store parts for service personnel, and for dozens of other services.
Smart Locker Around the World
Smart lockers have become commonplace in many countries around the world. Poland, with the backing of its federal government, has successfully implemented one of the densest smart locker networks in the world. With over 16,000 systems nationwide, there is a smart locker for every 2,375 residents in the country.
Other countries, like China, boast similar success in the deployment of smart lockers. But not all smart lockers are specifically designed for parcel delivery. Worldwide, smart parcel lockers account for less than 40% of all installed systems. Combined, laundry, fresh food, and modular smart lockers make up most smart lockers currently installed across the globe.
North America has lagged behind the rest of the world in adopting smart locker technology. But that is quickly changing. Increasing labor and fuel costs, environmentally conscious consumers, and improving the customer experience are driving smart locker technology to the forefront. It won’t be long before smart lockers become as ubiquitous as the ATM machine.
Branding isn’t restricted to retailers and brands either. Residential, universities, and offices can have customized wraps applied to match the aesthetics of their location. In addition, public entities can use the white space to promote their city or as a means to communicate community information to passers-by.
How to Choose the Right Smart Locker Solution
Smart lockers combine high-tech hardware with today’s latest smart technology. As such, selecting a partner to design, manufacture, and install a smart locker solution will be one of the most important decisions you make. The right partner will take a consultative approach to help you meet your specific needs and assist in evaluating the right combination of design, hardware, software, and support, including:
Design:
- Number of slots
- On-screen branding
- Paint/vinyl wrap design
- Anti-graffiti / corrosion coatings
Software:
- Email & SMS messaging
- Touchscreen configuration
- API integraion capabilities
- Cloud storage and management
Hardware:
- Peripherals
- In slot sensors
- Slot door locks
- Construction material
Support:
- Installation support
- 1-800 and email support
- Maintenance and repairs
- Onsite and virtual training
The Future of Smart Lockers
Only our imagination will limit what is possible with smart lockers. From universities to high-tech logistics companies, innovators are exploring the possibilities smart lockers hold.
The idea of mobile smart lockers is already being considered in countries where the infrastructure and addressing to support traditional logistics is lacking.
For leading retailers, smart lockers will be designed in a way that will break the standard box-shaped mold. Curved lockers with beautiful displays will one day attract shoppers to learn more about their products and make purchases at the locker.
And for the logistics companies moving trillions of dollars of goods across the globe, the smart locker will become an integral part of their transportation network.
A few countries have already embraced the smart locker. Will yours be next?
Michael Trueman, President & Co-Founder
Why ParcelPort?
Connecting people, places, & parcels is our business.
“In the end, it’s the people who are curious that change the world.” – Neal deGrasse Tyson. At ParcelPort Solutions, we’re curious to learn if there is a more economical and environmentally friendly way to move the goods we love from point A to point B.
We believe there is, and we’ve dedicated ourselves to the pursuit of building the world’s premier, Smart Locker network. By taking a collaborative approach with our partners, customers, and couriers, together we will change the world of logistics for the better.
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