Prompting pickup from parcel lockers: A reward-punishment strategy

Abstract

Parcel lockers can effectively enhance last-mile delivery by providing carriers and posts automation and parcel consolidation in the face of growing parcel volumes. However, a backlog can develop when parcels remain in lockers for extended periods. To address this issue, we propose a reward-punishment strategy to incentivize prompt parcel collection. A survey was conducted to evaluate incentives in the form of monetary rewards and overtime charges. Using the survey data, a Cox Proportional Hazard Regression model was developed to analyze parcel survival in lockers over time. Results indicate that the proposed strategy significantly encourages prompt collection of parcels. However, overtime charges can act as a double-edged sword, prompting early collection yet potentially dissuading some customers. To model customer retention while considering the impact of overtime charges, a Binary Logit choice model was developed. Additionally, a two-step clustering method was employed to categorize customers based on their sensitivity to the proposed strategy. Elderly retired customers purchasing daily necessities were the most responsive, while young non-regular employees and students showed minimal response. These models and associated findings can facilitate the development of more practical incentive implementations.