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Most cost and time efficient EU-wide cross-border automated parcel delivery solution

Periodic Reporting for period 1 - CLEV (Most cost and time efficient EU-wide cross-border automated parcel delivery solution)

Reporting period: 2015-05-01 to 2015-08-31

Cleveron has explored the technical feasibility and commercial potential of Cleveron’s latest innovation project: development of most cost and time efficient EU-wide cross-border automated parcel delivery solution (APDS). The goal of the innovation project is to develop and scale up the most cost efficient (cost drop 50% compared to alternative solutions) and convenient last mile solution in the parcel delivery industry sector. Cleveron’s approach is to cover the whole value chain, incl. processes of all stakeholders.

The feasibility study demonstrated that the innovation project carries considerable novelty in the industry sector and possesses a huge market potential. As in previous successful and highly efficient developments, Cleveron makes use of the latest technologies to satisfy each element of the value chain, from checkout to final delivery. Cleveron has analysed each element of the value chain during the Phase I and understands the way each element integrates into the value creation.

As a result of the feasibility study, an elaborated business and project plan was developed, addressing the technological specifics and commercialization of the product. The strategic business plan, specific objectives and tasks of Phase II were developed in cooperation with EU based carriers and post services, who will be implementing (in Phase II) developed PackRobot (PR) prototypes and APDS solution on 10 test sites in Europe.

After proven performance in the EU (Phase II), APDS could be applied worldwide and/or to more value chains where efficiency can be improved. Phase II will involve the implementation of EU-wide APDS pilot. By the end of Phase II, early adopters will become a part of the business model (partners) or paying customers. Outcome of the innovation project is a business model and solution that can serve interests of all stakeholders in seamless and most efficient way, decreasing cost of delivery by 50%, increasing vehicle and APT network loads, and increasing satisfaction of all stakeholders.

The feasibility project was contributed by the EU with the help of a € 50,000 grant.
Cleveron’s team has assessed the technological, practical and economic viability of an innovative business idea, determined the actions and resources needed to implement it along with the risks involved. As a result of the feasibility study, Cleveron has:
1) developed elaborated business plan, envisaging Cleveron’s innovation and commercialization strategy;
2) developed a project plan for Phase II of the innovation project (including technological specifications along with resources needed to implement it);
3) made preliminary agreements with different European stakeholders to set up test sites in 9 countries (in Phase II): Germany, Denmark, Finland, Spain, Hungary, Norway, UK, Sweden and Estonia.
After achieving the goal of the Project, APDS will be implemented in 8 EU countries and is ready for full scale implementation EU-wide, which is the goal of the overall plan to reach the market.

This project will drive revenue growth in e-commerce and drastic improvement in efficiency and load rate of vehicles in the EU logistics sector. As a result, new high value added jobs in transportation sector will be created. After proven performance in the EU, APDS technologies can be exploited and exported to the countries outside the EU, which will increase the export of high value added services. Fostering efficiency improvement in transportation and limiting the pollution is a global challenge.

This project will increase global demand for the new service and will create new high value added jobs (4000 in the EU) in European transport sector. Crowdsourcing of the carrier service will add 30 000 jobs/individuals to the sector. Due to the high level of cooperation and the need for local partners for running the APDS in every country, the project will enhance the emergence of new high-tech start-ups in European transport sector (at least 1 in every EU country). With an emphasis on international deliveries, APDS will increase drastically (+100%) flow of parcels of local players as a last mile solution.
PackRobot