The Importance of Out-of-Home Delivery Software on the Courier, Express and Parcel (CEP) Market

Ever since the global pandemic fueled the parcel shipping market, as consumers were more inclined toward ordering online compared to purchasing from physical stores, the global courier, express and parcel (CEP) market size has been only growing, with $600 billion USD in 2024 projected to grow to $988.15 billion USD by 2033, at a CAGR of 5.7% during the forecast period. To maintain their momentum, companies must address not only the expanding market but also the evolving expectations of customers. There is increasing pressure for affordable shipping that includes better service and real-time tracking applications. Additionally, companies must meet changing sustainability requirements, such as adopting eco-friendly fleets and adhering to mandatory carbon footprint tracking and reduction measures. This article will showcase how custom courier, express, and parcel software, with an emphasis on out-of-home (OOH) delivery software, can help organizations like courier companies, ecommerce businesses and pickup networks overcome those challenges and grow their firms.

What is courier, express and parcel (CEP) software?

Courier, express, and parcel (CEP) software is a collection of digital tools logistics companies use to manage and optimize their package delivery operations. This software supports the entire process, from package pickup to final delivery, by offering features such as real-time tracking and tracing, route optimization, warehouse management, and delivery management. It enables efficient handling of large volumes of packages, ensuring both accuracy and speed. CEP software is essential in modern logistics, as it helps companies meet customer expectations for fast and reliable delivery. Additionally, many CEP solutions include data analysis capabilities, which assist businesses in identifying areas for improvement and enhancing overall performance.

Tech issues the CEP industry is facing today

CEOs, CTOs, and software delivery managers in logistics companies face significant technology-related challenges, including:

• System reliability: Concerns about whether legacy systems can handle the demands of the upcoming peak season.
• Development speed: Improvements often take too long and exceed budget constraints.
• Security risks: Data breaches and system outages could disrupt operations.

Current tech solutions often fall short due to various interconnected reasons that hinder their effectiveness in addressing modern challenges. One significant factor is the role of internal IT departments. While knowledgeable, these departments can inadvertently perpetuate existing problems by lacking fresh perspectives and innovative approaches. This results in a cycle where outdated practices continue to prevail.

Additionally, vendors have developed systems that were once cutting-edge but have since become obsolete, making it difficult to meet contemporary demands and expectations. Off-the-shelf software and software-as-a-service (SaaS) solutions also pose challenges as they frequently fail to integrate seamlessly with unique business processes, leading to complications and inefficiencies. Furthermore, these solutions can create vendor lock-in issues, making it hard for organizations to switch to alternative platforms when their needs change.

Lastly, generic software providers often lack specialized industry expertise. This deficiency means they take time to understand industry-specific requirements, leading to compromised outcomes that can be costly for clients who bear the burden of these learning phases.

What can be done to address both the current market challenges and issues related to technology? Let’s start with solutions regarding the market.

The era of out-of-home delivery (OOH) networks

Taking advantage of an OOH network is one of the most effective ways to address current market demands. According to a report by McKinsey, the number of OOH points per 10,000 residents is significantly higher in Eastern Europe and Scandinavia – approximately 15 in Poland and the Czech Republic and around 16 in Finland – compared to Western European countries, where the figures are around 8 in Germany and 9 in France. However, growth in this sector is inevitable. OOH volume in Germany, France, Poland, and Italy is projected to increase by 1.3 billion parcels by 2027, while home deliveries are expected to rise by only 200 million parcels during the same period. This growth is expected to generate around €9 billion EUR in OOH revenues, 70% higher than current levels. OOH delivery solutions consist of automated parcel machines (APM) and PUDO (pick-up/drop-off) networks.

Out-of-home delivery solutions are gaining popularity for several reasons. They effectively manage high volumes of parcels while reducing congestion during the last mile of delivery. This robust approach helps lower logistics costs by consolidating deliveries, minimizing failed deliveries, and optimizing the workloads of couriers. Furthermore, they support free or low-cost shipping models, reduce the carbon footprint and urban congestion, and adapt to e-commerce trends to alleviate seasonal bottlenecks.

You can address CEP market challenges with a robust OOH delivery network, but companies cannot implement these solutions without the right technology and an experienced software partner.

The role of OOH delivery software development consulting

Addressing industry challenges requires customized, technology-based solutions designed specifically for each situation by experienced professionals. OOH software development involves more than just coding at a computer; team members must also gain firsthand experience. This may involve working as a courier or a warehouse employee for a day to learn the ropes. Combining development expertise with some practical experience is essential for creating effective software and solutions for the courier, express, and parcel market.

With the knowledge that an OOH team needs to consist of industry experts who bring a wealth of knowledge and experience to the development process, let’s focus on the crucial elements of the OOH delivery software development.

• Customizable solutions: providing tailor-made software that meets your OOH delivery operations’ unique needs, ensuring that it aligns perfectly with your business goals.
• Process optimization: Specializing in analyzing and enhancing delivery processes, ensuring that your operations are efficient, timely, and cost-effective.
• Integration capabilities: Seamlessly integrating with existing systems and technologies, ensuring a smooth flow of information and improving overall operational efficiency.
• Scalability: Introducing solutions that can scale to accommodate increased demand and expanding service areas.
• User-friendly interface: Designing intuitive interfaces that make it easy for users to manage deliveries, track progress, and communicate with team members.
• Analytics and reporting: Incorporating robust analytics tools that help you analyze performance data, identify trends, and make informed decisions to improve your delivery service.

Delivering software for the delivering businesses

A Last Mile Experts report forecasts a substantial growth in OOH delivery services by 2025-2026, predicting that business-to-consumer (B2C) shipments could surpass $20 billion USD annually. Additionally, they expect that nearly all consumer-to-consumer (C2C) parcels sent and received by individual consumers will be managed through OOH points. Missing out on such an opportunity would be a grave business mistake.

If you are interested in building or expanding your out-of-home delivery software capabilities, leveraging your APM software development or utilizing your PUDO experience to grow your business, contact one of our experts using this form.