Package Glut: Global problem

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Cyber Monday hit a client’s office block with a vengeance. Over 1500 parcels hit the front desk in reception. And all of those parcels then had to be signed for and delivered to the tenants.

But typically they now receive 100 packages a day.

This is a new postal trend. Given Amazon and e-commerce we are sending and receiving more and more parcels and packages. This has created a package glut. A lot of parcels fit in a normal letterbox but a lot don’t.

And package glut is a growing worldwide problem.

One managed apartment complex in Virginia USA received over 300,000 parcels last year and this has created untold logistical headaches.

Here in the UK, a resident director said:

“Packages have to be sorted and delivered. This means that people we pay to man reception are busy delivering parcels to our tenants. If we get our maintenance guy to do it, maintenance doesn’t get done. If we ask the security guy to do it, we breach our obligations with security. We recently received a hike in insurance as well because the security guy who got relegated into being a postman neglected his duties.”

“Our tenants expect their mail to be delivered but they do not want to pay for what has become a full time job. We’ve looked at setting up a locker room for each tenant but it will still be time intensive and tenants do not want their body corporate fees to increase to cover that cost. And they complain if there is no security.”

“Royal Mail gets paid 100% for postage and delivery, but we don’t. We are expected to absorb that cost.”

“In addition our waste disposal costs have increased. We now have to pay for cardboard recycling of the increase in cardboard packaging and our tipping costs have skyrocketed.”

My client says that the increase in packages has had a significant knock-on effect in time, money and logistics.

 

 

 

 

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