Online shopping and home delivery have been among the best developments of the digital age. However, this rising trend in e-commerce has also birthed significant challenges in the real estate sector.

In offices, apartment buildings, and universities, staff plays a pivotal role in ensuring tenant satisfaction, with responsibilities like maintenance, security, and parcel management.

Now, imagine processing packages for 50 people every day. How about 500 or more? It may seem impossible, but with a package room or parcel locker system, it can be easier.

Both solutions can help make parcel management easier, but which is better? In this article, we do a deep dive into the pros and cons of each so you can decide which is best for you. Read on to learn more.

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Should I Invest in Parcel Lockers or a Package Room?

Parcel lockers and package rooms are game-changing solutions to the challenges of parcel management. For smaller buildings, parcel lockers are an efficient, space-saving option. Package rooms are best for large organizations with hundreds or thousands of recipients.

One organization is Vita Group, a student accommodation dedicated to creating environments where people can thrive. Vita Group was able to streamline its package management for over six thousand recipients with the help of Parcel Tracker.

“Parcel Tracker has transformed our operation, enabling students to collect parcels at their convenience 24/7, safe in the knowledge that they are being handled securely upon arrival. Not only does it improve our residents’ experience, it has also saved us over 28 weekly hours of operational time, which has enabled our staff to focus their time on other areas.”

—Matt Withers from Vita Group, Head of IT

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Parcel Locker or Package Room

How do you decide which solution is right for you? A parcel locker is better if your business or building:

• Has limited space for package delivery and collections.
• Doesn’t have many recipients.
• Primarily handles small packages, as large items won’t fit in parcel lockers.
• Isn’t looking for a scalable option.
• Has the budget for a high-quality automated parcel locker system.

Package rooms are better if your business or building:

• Wants an affordable solution that is easily scalable for package management.
• Requires controlled access for enhanced security and monitoring
• Has an existing space of any size, like an old supply room.
• Needs a solution that is easier to maintain and adjust based on delivery trends.
• Prefers a high-level security infrastructure.
• Is an established organization that wants to manage package delivery and collection for many recipients without disrupting traffic.

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What is a Parcel Locker?

Recipients usually need to be physically present to receive a parcel. Alternatively, couriers may leave the package with an authorized representative, such as a concierge, receptionist, or security guard. However, in many cases, this is not available.

Parcel lockers can address this issue.

Parcel lockers are hardware storage units designed to accommodate parcel drop-off and storage. Lockers are usually placed in a communal area so tenants can pick up their parcels and be on their merry way. Many retail stores use parcel lockers to let customers pick up their online deliveries hassle-free.

The courier can deposit the parcel in a locker, allowing the recipient to collect it later. This eliminates clutter and the need to reschedule courier services, which might otherwise be pushed out by days or weeks.

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How Does a Parcel Locker Work?

Parcel locker solutions vary by type and integration. Some are electronic, while others use the traditional lock and key system. However, they all generally have the same function.

1. The courier will access the locker via a one-time access code.
2. They deposit the parcel into the locker.
3. The recipient is notified of their parcel’s delivery.
   1. Electronic Parcel Lockers: Recipients receive an automated email, text, or locker app notification. This notification provides instructions on how to collect a delivery.
   2. Traditional Lockers: The courier leaves a key in the designated recipient’s mailbox.
4. The recipient follows the instructions to open the locker and collects their delivery.

Instructions for collecting vary between different electronic parcel locker systems. Recipients can either scan a QR code, input a unique alpha-numerical code, or use the locker’s integrated mobile app.

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What is a Package Room?

Package rooms are centralized locations within a building where couriers can drop off parcels for recipients to collect them at a later time. Like parcel lockers, package rooms enable self-service collections for recipients. Couriers may also self-serve delivery drop-offs if a building has Amazon Key, but otherwise, they need to request access from building management.

Their functionality is similar to that of parcel lockers, but with the key advantage that it can accommodate larger volumes of deliveries.

You get all the benefits of a parcel locker but with more storage flexibility. Instead of small individual compartments, you get a big room with shelves and bins. This enables you to maximize the space used for deliveries.

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How Does It Work?

Package room operations can differ depending on its established protocols, but typically, they are self-service for collection. Access control is essential to maintain security and ease of tracking.

1. The courier brings the parcel to the package room or the reception desk for log-in. This can be done manually or by scanning the package label. Amazon Key for Business allows couriers into the building for a limited time to drop off parcels.
2. Once the label is matched to a recipient, the recipient will receive a notification via email, text, or app with instructions on how to collect their parcel.
3. The package is sorted based on the recipient’s information and stored in a designated area within the package room.
4. The recipient follows the instructions to collect their delivery. Depending on the software used, they can:
   1. Use a one-time code to access the package room.
   2. Use the Parcel Tracker Kiosk app to electronically sign for their deliveries.
   3. Use a radio frequency identification (RFID) card.

In the case of Vita students, parcels are given to the receptionist and then stored in a package room.

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Advantages

It’s essential to understand how each system addresses specific needs in package management. Let’s unpack these advantages together.

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24/7 Availability

With unlimited access, recipients can collect their packages at any time. Parcel lockers are easier to operate 24/7 because they don’t need maintenance staff. Package rooms are also available 24/7 but often require staff to manage them.

With Parcel Tracker, you can turn your package room into a fully functional self-service station. This allows your package room to operate around the clock so that recipients can collect their parcels anytime.

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Efficiency

Package rooms and parcel lockers give property managers the opportunity to create a more systematic approach to parcel management. Both maintain high standards of organization, so you never have to worry about where you’re going to put the next package. This not only lightens the burden but also allows you to focus on more important matters.

Security

Unattended packages, especially those containing valuables or sensitive information, should not be left anywhere for everyone to see. Parcels left in plain sight or on an open shelf create a huge security risk.

Modern parcel lockers have unique access codes that can only be used by authorized representatives, such as couriers or receptionists. Package rooms are inherently less secure as multiple people have access to the space, so building managers must implement access control and CCTV systems to deter theft and monitor activity. In our experience this reduces lost parcels to zero.

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Challenges

The best solutions don’t come without a few added challenges. Understanding the difficulties in implementing these solutions will help you address potential issues to better meet the needs of everyone involved.

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Space

Space is an obvious challenge for parcel lockers and package rooms. Parcel lockers are bulky and often need to take up space in a hallway or lobby. They also lack scalability.

For example, a new business moves into an office building with only ten members. As the business grows, so will its staff, and it will have to add new lockers to accommodate new recipients.

It’s also worth mentioning that parcel lockers can have limitations when it comes to storing larger packages. Oversized items may require additional handling, increasing the time and labor involved with package management.

If you don’t have enough lockers, you will need a second storage area for excess parcels. On the other hand, a package room would only require an existing room of any size. Adding more shelves to expand a package room’s capacity is more straightforward than upgrading or adding more lockers.

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Software and API Integration

Modern parcel lockers require sophisticated software to seamlessly integrate with different couriers and protocols. If a parcel locker system uses proprietary software, it may present compatibility issues with other tools or systems used in the building.

Package rooms are more flexible with software integrations. Building managers have the freedom to choose the tools that best accommodate their needs. However, it’s crucial to ensure that each software you implement is compatible with each other.

Parcel Tracker’s enterprise features enable building managers to unify their package management efforts and security protocols. In addition to core functionalities such as mobile scanning, automated notifications, and custom labeling, our software is compatible with LDAP, SAML, Okta, and Auth0. You can also use our API to make custom integrations with your internal systems and SAP and ERP platforms.

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Streamline Parcel Management Today

Both parcel lockers and package rooms offer security, efficiency, and 24/7 availability, but they cater to different needs. Parcel lockers are ideal for organizations with a smaller number of recipients and smaller packages. A package room might be a better fit for businesses that handle packages of various sizes and a larger volume.

Looking to adopt a package room system? Consider investing in package management software to streamline the process and ensure accurate delivery. Try out Parcel Tracker for free and find out how it can support your parcel management process.