Empathy Idea: Apartment Logistics Center
Apartment Logistics Center: An Innovative Solution to Courier Conflicts and Theft Problems
Conflicts within apartment complexes continue due to delivery issues. Recently, in a 2,500-household apartment in Suwon, Gyeonggi Province, ground access was prohibited, and delivery workers refused to deliver to the front door and piled up numerous packages at the front door, causing a 'delivery chaos'. This has been repeated in many areas, including Namyangju in 2018, Songdo in Incheon in 2020, and Gangdong-gu in Seoul in 2021. In addition, as non-face-to-face delivery becomes routine, the number of cases of packages being stolen from apartment doors is increasing, becoming a major social problem. Against this backdrop, we would like to propose an innovative idea called an apartment logistics center.
Apartment conflicts related to delivery, is there no solution?
Currently, many apartment complexes are restricting ground-level entry of delivery vehicles for the safety of children. The manager of Apartment A explained the reason for restricting the entry of delivery vehicles, saying, “Our apartment complex started as a ‘car-free apartment complex’ and many residents moved in for the safety of their young children.” On the other hand, delivery drivers are protesting, saying, “The height of the top vehicle is over 2.5m, so they cannot enter the underground parking lot or there is a risk of accidents.”
A more serious problem is that some apartments demand 100,000 won from delivery workers for the purpose of issuing an access card. In one apartment in Hwasun, delivery workers are protesting, saying that it is "bullying" because they demand a deposit of 80,000 won in addition to the 20,000 won card issuance fee. In such a situation, delivery workers are reluctantly paying the fee and delivering the goods.
Meanwhile, as the number of dual-income couples increases, it is becoming difficult to receive packages in person, and the number of cases of packages being stolen from the front door is also increasing. In particular, small boxes and light packages that are easy to move are often stolen. A resident of an apartment in Muan-eup complained of theft, saying, "I asked the delivery person to leave the package in front of the front door, but when I got home, it was gone."
Apartment Logistics Center: Innovative Solutions for Everyone
As a solution to these complex problems at once, we propose an ‘apartment logistics center.’ This center is located within or near an apartment complex and serves the role of receiving and managing all parcels for the complex in a batch.
The core functions of the apartment logistics center are as follows:
First, all parcels are received in bulk at the center. The courier does not need to enter the apartment complex; he just delivers the parcels to the logistics center. This eliminates the risk of safety accidents caused by vehicles entering and exiting the complex, and naturally resolves parking problems and conflicts over entry and exit.
Second, all items brought into the center are safely stored after undergoing sanitary management such as disinfection. You can receive items with peace of mind even in an infectious disease situation such as COVID-19.
Third, the products are classified through an automated system utilizing the latest technology, and robot-based unmanned management is carried out. Residents receive notifications of the arrival of products through a smartphone app, and can pick them up in person or request robot delivery.
Fourth, there is a space within the center where you can remove packaging materials and separate them for recycling, so you don’t have to take unnecessary waste home. This is a system that can also contribute to environmental protection.
Fifth, it can be expanded into a service that allows you to receive not only parcels but also mail that needs to be received in person, such as registered mail from the post office.
Conditions and Cases for Successful Implementation
There are several prerequisites for the successful implementation of an apartment logistics center.
The most important thing is the consent of the apartment residents. After the consent of the residents, the business operator should be selected, and the selected business operator should negotiate with the courier company. Ideally, it is recommended to plan the logistics center space from the design stage of the new apartment.
In the case of existing apartments, you can secure space within the complex with the consent of residents, or induce investment by guaranteeing long-term business rights to business operators. There are cases like E Apartment in Boram-dong, Sejong City, where electric carts were purchased to solve the problem of parcel delivery, and you can consider expanding this into a systematic logistics center.
In addition, if we introduce a system in which elderly deliverymen re-deliver packages from the logistics center to each household, such as the 'Silver Delivery' system currently being implemented in an apartment complex in Gangdong-gu, Seoul, it can also contribute to creating jobs for the elderly.
There are also cases where dedicated spaces for delivery vehicles and unmanned delivery boxes are installed in public parking lots. As a delivery driver said, "It took a long time because there was no space to park, but now that there is a dedicated space, the time has been greatly reduced," logistics centers can also improve the work efficiency of delivery drivers.
A win-win solution for all stakeholders
Apartment logistics centers provide benefits to all stakeholders.
Residents can safely receive items without worrying about parcel theft and use convenient delivery services. In particular, it can effectively solve the problem of lost parcels that occurs as non-face-to-face delivery increases.
Delivery drivers can deliver efficiently without conflicts due to restrictions on apartment access, which greatly reduces their workload. CJ Korea Express Team Leader Kim Young-wook emphasized that “more government support is needed to secure logistics centers,” and these apartment-level logistics centers can also help reduce the burden on logistics infrastructure for delivery companies.
In terms of apartment management, safety issues are resolved by reducing vehicle traffic within the complex, and it becomes easier to secure parking spaces. In addition, the burden of handling complaints related to delivery is reduced.
Logistics center operators can secure a stable business foundation and create new business models through innovative services such as robot delivery.
First Steps to the Future
In the current era where logistics trends and living environments are rapidly changing, apartment logistics centers will become essential infrastructure beyond mere convenience facilities. In particular, with the continued increase in online shopping, the volume of parcels is expected to continue to increase in the future. In fact, there is a report that while parcels increased by 64%, logistics centers increased by only 15%, indicating that the expansion of logistics infrastructure is urgent.
Apartment logistics centers are an innovative solution that can solve various social issues at once, such as conflicts between delivery workers and residents, safety issues, theft issues, and environmental issues. I hope that this idea will spread widely and make a small contribution to creating a better living environment and logistics system.
Why not consider introducing this logistics center to your apartment? Small starts can make a big difference. Let's create a better future together.
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Apartment Logistics Center: Latest Technology and Practical Solutions
In addition to the apartment logistics center idea introduced earlier, we would like to further concretize this innovative concept through rapidly changing logistics technology trends and real-life cases. Let’s take a look at the vision of a more complete apartment logistics center that reflects the latest technology and market trends.
Smart logistics system armed with cutting-edge AI technology
The core competitiveness of apartment logistics centers lies in the introduction of the latest logistics technology. Like the system that POSCO DX built in Hanjin Daejeon Smart Mega Hub, the efficiency and accuracy of the product classification work can be greatly improved by utilizing artificial intelligence (AI) and image recognition technology. In particular, the '3-classification system' that automatically recognizes and classifies irregularly shaped cargo is a technology that can be applied to apartment logistics centers. The introduction of such technology can dramatically improve the accuracy of product management and reduce manpower operating costs.
The global smart logistics center market is expected to grow at an average annual rate of 14.6% from approximately KRW 27 trillion in 2023 to approximately KRW 53 trillion in 2028. Korea is expected to show an even steeper growth rate, suggesting that the introduction of innovative systems such as apartment logistics centers could be well-received in the market.
Making autonomous robot delivery a reality
Robot delivery, one of the most innovative elements of apartment logistics centers, is already being realized domestically. In September 2024, Seongnam City, Gyeonggi Province, launched the nation's first 'urban autonomous robot service'. This robot performs deliveries by avoiding pedestrians and obstacles and crossing roads and crosswalks using technology that combines GPS, cameras, and sensors.
If this technology is introduced to apartment logistics centers, residents will be able to experience fast and convenient services, as in the case of Seongnam City, where the process from ordering to receiving was completed in just 13 minutes. When the robot arrives, the system that provides a voice message saying, “Here we are. Press the button and take it out,” and informs you of how to receive the item via text message can also be applied to the robot delivery service of apartment logistics centers.
The severity of the parcel theft problem and solutions
The problem of parcel theft is much more serious than we think. Since COVID-19, the number of domestic parcels has increased significantly to 3.62967 billion compared to 2019, which is 125.4 per economically active person per year. As so many parcels are delivered in a non-face-to-face manner, the number of theft incidents has skyrocketed.
What is particularly shocking is the reality that delivery drivers are responsible for the damage caused by theft of packages. One delivery driver said, "I get dozens of text messages a day about lost or stolen packages," and in April 2022 alone, he paid about 1 million won in lost or stolen packages. There are also statistics that show that among the theft cases that occurred in northern Gyeonggi Province, non-intrusive theft, including package theft, accounts for a whopping 80-90%.
Apartment logistics centers can prevent these theft problems at the source. The problem of parcel theft, which is especially vulnerable in multi-family housing without CCTV, can also be solved through safe storage at logistics centers.
Introduction of an efficient inventory management system
An efficient inventory management system is essential for the smooth operation of an apartment logistics center. Among the various inventory replenishment methods utilized in the logistics field, the automated replenishment system is a method that automatically replenishes based on sales or consumption data using an IT system, and can be optimized for the operation of an apartment logistics center.
In addition, if you introduce a delivery zone optimization system used by large e-commerce companies, you can establish an efficient delivery plan according to the order density of the apartment complex. For example, if 400 boxes are delivered to an apartment complex with 180 households, the system can manage it by dividing the complex zone into several areas and assigning each to a different delivery person.
Addressing safety and liability issues
Safety accidents and liability issues that may occur during the apartment delivery process can also be greatly improved by introducing a logistics center. In accordance with strengthened safety-related laws such as the Serious Disaster Punishment Act, the business owner’s responsibility is increasing in the event of an accident during delivery. Apartment logistics centers can reduce the risk of traffic accidents by reducing the number of delivery vehicles entering the complex, and ensure a safe working environment for delivery drivers.
Especially in a situation where apartment complexes are increasingly restricting the entry of delivery vehicles due to safety concerns for children within the complex, logistics centers can be a safe and efficient alternative for both residents and delivery drivers. Conflicts and cost burdens that arise when delivery drivers enter and leave apartments will also be resolved.
Building a sustainable operating model
In order to operate the apartment logistics center sustainably, it is important to establish an appropriate profit model. Just as Seongnam City’s robot delivery service charges a fee of 500 won per unit after a trial period, apartment logistics centers also need to establish a reasonable fee system.
In addition, you can secure various revenue sources, such as generating advertising revenue through kiosks installed in logistics centers or operating premium rates for robot delivery services. Job creation through direct delivery part-time jobs for residents can also contribute to the revitalization of apartment communities.
Scalability for the future
Apartment logistics centers can expand beyond simple parcel receiving spaces to include a variety of services. They are likely to evolve into platforms that can provide integrated services closely related to residents’ lives, such as laundry pickup, food delivery, and shared item storage.
Especially in modern society where single-person households are increasing, apartment logistics centers can also play an important role in protecting personal information and safety, as in the case of Mr. Hwang, who said, "I reported it to the police, but I am anxious that I could become a target of a bigger crime because I am a single-person household."
It takes a lot of effort and cooperation to make the idea of solving the problems around us a reality. However, looking at the advanced logistics technology and robot delivery services that are already being realized, the feasibility of apartment logistics centers is very high. I hope that with the active interest and participation of residents, we can create a safer and more convenient living environment.
What delivery problems are you experiencing in your apartment? Let’s talk about how an apartment logistics center can change your daily life.
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Apartment Logistics Center Business Plan
This is a comprehensive plan for the innovative 'Apartment Logistics Center' project that solves the problem of parcel delivery within apartment complexes and improves the convenience of residents. This center provides a service where residents can receive parcel items in bulk and pick them up in person or have them delivered via robots, thereby creating a safe and efficient living environment.
Business Background and Current Status
Problems with current courier delivery
Recently, due to the rapid growth of the e-commerce market, the number of parcels has skyrocketed, causing various problems in apartment complexes. Since COVID-19, the number of domestic parcels has increased significantly to 3.62967 billion compared to 2019, which is 125.4 per economically active person per year. This increase in delivery volume is causing various conflicts in apartment complexes.
In one apartment in Hwasun, there was a case where a delivery man was asked to pay 100,000 won for an access card, and in some apartments, a ‘delivery chaos’ occurred where delivery men refused to deliver to the door after ground access was prohibited. This conflict has been repeated in various regions, including Namyangju in 2018, Incheon Songdo in 2020, and Seoul Gangdong-gu in 2021.
In addition, the increase in non-face-to-face delivery is also leading to an increase in theft of parcels. In particular, as the number of dual-income couples increases, it is becoming difficult to receive parcels in person, and theft of parcels left in front of doors is rapidly increasing. In the northern Gyeonggi region, non-invasive theft, including parcel theft, accounts for a whopping 80-90% of theft cases.
Logistics Market Status
The global smart logistics center market is expected to grow at an average annual rate of 14.6% from approximately KRW 27 trillion in 2023 to approximately KRW 53 trillion in 2028. In particular, demand for the latest logistics centers near the metropolitan area is increasing due to the increase in same-day and express delivery, and demand for logistics centers in this field is expected to continue to increase due to the high growth of the courier business and the boom in overseas direct purchasing.
Business Overview
Business Purpose
By establishing a logistics center within the apartment complex and introducing a centralized management system for all parcel items, we aim to achieve the following goals:
Resolving conflicts between apartment residents and delivery drivers
Improved safety by simply reducing vehicle traffic
Preventing theft and loss of parcels
Improve hygiene management of goods
Establishing an efficient parcel receipt and delivery system
Service Contents
This project will establish a logistics center within or near an apartment complex to provide the following services:
Bulk receipt service: All parcels delivered to the complex are received in bulk at the logistics center.
Hygiene Management: Disinfection and sanitization of all incoming items
Smart Storage: Sorting and storing items using AI-based automated systems
Various payment methods:
Residents receive it directly
Robot delivery service
Resident Part-time Delivery Options
Eco-friendly packaging: Provides space for packaging material removal and recycling
Integrated mail service: pick up of regular mail and registered mail
How it works
Build a logistics center: Build a logistics center facility within or near an apartment complex.
Professional human resource management: Deploying logistics management professionals and securing robot management personnel
Introducing cutting edge technologies:
Automated classification system
Robot delivery system
Smartphone app-based notification and reservation system
Installing a Kiosk
24-hour operation: Service available 24/7 through unmanned system
Market Analysis
Target Market
Apartment Resident: Residents of apartment complexes nationwide
Courier Company: National courier service provider
Logistics Management Operator: A professional logistics center operator.
Market size
The domestic e-commerce market grew approximately 2.5 times in four years from KRW 55 trillion in 2015 to KRW 135 trillion in 2019, and is expected to continue growing. Accordingly, the volume of parcel delivery is also steadily increasing, and demand for parcel delivery is particularly high in apartment complexes in the metropolitan area.
SWOT Analysis
Strengths
Improved safety: Reduced risk of traffic accidents due to fewer delivery vehicles entering apartment complexes
Increased convenience: 24-hour delivery possible through robot delivery and unmanned system
Hygiene: Reduce the risk of infection by disinfecting and sanitizing all items.
Theft Prevention: Solve the problem of package theft and loss with centralized management
Environmentally friendly: Protecting the environment by providing immediate packaging material disposal and recycling facilities
Diverse service scalability: Service expansion to include mail, fresh food delivery, etc.
Improving Delivery Work Efficiency: Increase Delivery Efficiency with Single-Point Delivery
Weaknesses
Initial investment costs: High initial costs required to build facilities and introduce robotic systems.
Space availability issues: Difficulty in securing adequate space in existing apartments
Resident consent required: Resident consent is required for facility installation and operation.
Technical limitations: the imperfection of robot delivery and the possibility of technical problems occurring.
Operating expenses: Ongoing costs associated with system maintenance and personnel operations.
Opportunities
E-commerce Growth: Online Shopping Continues to Grow, Increasing Parcel Delivery Volumes
New technology development: rapid advancements in robotics, AI, and automated systems
Potential government support: Expanding government support for logistics innovation and improving living environments
Reflecting new apartment design: Logistics center space can be secured from the design stage of new apartments
Increased value perception: Increased awareness of the value of residents’ safety and convenience.
Job Creation: Local Job Creation through Logistics Center Operations
Threats
Possibility of backlash from delivery companies: Backlash from delivery companies regarding changes to existing delivery methods
Competitive services: The rise of alternative services such as unmanned parcel boxes and smart mailboxes
Difficulty in securing profitability: Difficulty in setting appropriate fees and establishing a profit model
Potential for resident dissatisfaction: Potential for resident dissatisfaction with changes in service usage
Technical failure: Response required in case of technical problems such as robot failure or system error
Implementation Strategy
1. Preparation stage
Collecting Resident Opinions: Surveying Apartment Residents and Obtaining Resident Consent
Business Selection: Open Recruitment and Selection of Professional Logistics Center Operators
Courier Agreement: Establishing a cooperation plan between selected business operators and courier companies
Make space:
New apartments: Logistics center space reflected from the design stage
Existing apartments: Secure space within the complex or rent in a nearby area
2. Construction phase
Center Design and Construction:
Center design considering efficient logistics flow
Establishment of automated facilities and robotic systems
Installation of disinfection and sanitation facilities
Providing a space for packaging material separation and collection
System Development:
Smartphone App Development
Building an automatic goods classification system
Robot delivery route programming
Kiosk Installation and Integration
3. Operation phase
Pilot Operation: Pilot service for some items
Full Operations: Service expanded to all parcels
Monitoring and improvement: Continuous service monitoring and improvement
Expanding services: Expanding to include postal and other delivery services
Financial Planning
Initial investment cost
Cost of building the facility:
Building construction cost: 300-500 million won for 500-1,000㎡
Internal facilities and equipment: 200-300 million won
Cost of building the system:
Automated system: 100-200 million won
Robot delivery system: 100-200 million won (based on 5-10 robots)
Software development: 50 million to 100 million won
Operating cost: 50 million won
Total initial investment cost: 800 million to 1.3 billion won (may vary depending on size)
Revenue Model
Basic Service Fee:
Monthly Resident Fee: 5,000~10,000 won per household
Courier delivery fee: 300~500 won per unit
Additional service fees:
Robot delivery service: 1,000 won per unit
Expedited delivery service: 2,000 won per unit
Advertising Revenue: Kiosk and In-App Advertising Revenue
Space rental revenue: Rental of additional service space within the center
Operating expenses
personnel expenses:
Management staff: 2-3 people per month, 100-150 million won/year
Delivery staff: Varies depending on demand
Maintenance Costs:
Robot and system maintenance: 50 million won/year
Facility maintenance: 30 million won/year
Utility bills and other expenses: 30 million won/year
Profitability Analysis
For a 500-unit apartment complex, assuming a monthly occupancy rate of 80%:
Monthly income: Generation usage fee (500 x 8,000 won x 80%) + courier fee (3,000 cases x 400 won) + robot delivery (1,000 cases x 1,000 won) = approximately 4 million won + 1.2 million won + 1 million won = approximately 6.2 million won/month
Annual income: approximately 74 million won
Payback period: approximately 11 to 17 years (need to improve profitability)
Expected effect
1. From the apartment residents’ perspective
Enhanced safety: Reduced risk of traffic accidents due to reduced vehicle traffic within the complex
Increased convenience: 24-hour item pickup and robot delivery service for added convenience
Theft Prevention: No more worries about package theft with safe storage of items
Hygiene management: Strengthening hygiene management by disinfecting items
Improve the environment: Reduce household waste by disposing of packaging materials immediately
Community Activation: Expanding Community Activities through Resident Delivery Services
2. From the courier side
Work efficiency: Increase efficiency by delivering in bulk to one location without visiting individual households
Shorten delivery times: Save delivery time with concentrated delivery by complex
Conflict Resolution: Resolving Conflicts Related to Apartment Entry and Parking
Reduced liability: Reduced liability for theft occurring after delivery
Improving the working environment: Improving the working environment and safety of delivery drivers
3. Socio-economic aspects
Job Creation: Creating new jobs in logistics center operations and delivery
Local economic revitalization: Increased economic activity centered around logistics centers
Reduced traffic congestion: Reduced traffic congestion due to fewer delivery vehicles within the complex
Environmental protection: Reduce carbon emissions with efficient delivery systems
Improving the living environment: Creating a safe and comfortable living environment
Logistics Industry Innovation: Promoting Logistics Service Innovation Using Advanced Technology
conclusion
Apartment logistics centers are an innovative solution that can solve the rapidly increasing volume of parcels and the various problems that arise from them. It can enhance the safety and convenience of residents, increase the work efficiency of parcel delivery companies, and have positive socio-economic effects.
Although this project has challenges such as large initial investment costs and the need for residents’ consent, it can be considered a future-oriented investment considering the continued growth of the e-commerce market, advancements in advanced technology, and increasing demand for a safe living environment.
We will work to ensure that apartment logistics centers become standardized residential infrastructure by reflecting logistics centers in the design phase of new apartment complexes and gradually introducing them to existing apartments.
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Apartment Logistics Center Ideas Summary
outline
Apartment logistics centers are facilities installed in or near apartment complexes to collectively receive and manage all parcels for the complex. Residents can check the arrival of parcels through a smartphone app and either pick them up or request robot delivery. This summary was written based on a 500-unit apartment complex, and proposes innovative solutions to solve parcel delivery-related problems and improve resident convenience.
Current Status and Issues
current situation
Increase in parcel volume: Since COVID-19, the number of domestic parcels has increased to 3.62967 billion, which is 125.4 per economically active person per year. Based on a 500-household apartment, an average of 430 parcels are delivered per day.
Conflict between apartments and delivery drivers: The number of apartments restricting ground-level access for delivery vehicles for child safety reasons is increasing, and some apartments are demanding 100,000 won from delivery drivers under the pretext of issuing access cards, deepening the conflict.
Increase in parcel theft: As dual-income couples increase, theft of parcels left in front of doors is on the rise due to difficulties in receiving them in person. Non-invasive theft accounts for 80-90% of thefts in the northern Gyeonggi region, and a significant portion of these are parcel thefts.
Increasing Burden on Delivery Drivers: One delivery driver said he had to pay about 1 million won in lost or stolen packages in April 2022, and this burden is continuing to increase due to the increase in non-face-to-face deliveries.
Goals and How to Achieve Them
Creating a safe delivery environment: Minimize the entry of delivery vehicles into the complex to reduce the risk of traffic accidents and resolve conflicts between delivery drivers and residents.
Prevent theft and loss: Centrally manage all parcels to fundamentally solve the problem of theft and loss.
Enhanced hygiene management: Reduce the risk of infectious diseases by disinfecting and sanitizing all incoming items.
Establish a convenient receipt system: Increase convenience for residents through a 24-hour system and robot delivery service.
Eco-friendly operation: We contribute to environmental protection by providing a space for packaging material separation and recycling.
Improvement plan (implementation plan)
1. Establishment and operation of logistics center
Build the facility:
Build a logistics center of approximately 500 to 1,000 square meters in an apartment complex with 500 households
Installation of automated sorting system, disinfection equipment, and packaging material separation and collection space
Initial investment cost: 800 million to 1.3 billion won
Operating System:
Item arrival notification and pick-up reservation system via smartphone app
Kiosk installation allows for on-site verification and receipt
Building an automatic delivery system using 5 to 10 robots
Human Resources:
Management staff: 2~3 people
Delivery staff: Flexible operation based on demand
Utilizing Resident Part-Time Delivery Workforce
2. Step-by-step implementation strategy
Preparation Steps:
Resident survey and opinion gathering
Selection of business operator and consultation with courier company
Finding the right space in your apartment
Build phase:
Logistics Center Design and Construction
System Development and Testing
Robot delivery route programming
Operation steps:
Trial operation and improvement of problems
Expanding to full operation
Continuous monitoring and improvement
3. Revenue Model
Base Fee:
Monthly Resident Fee: 5,000~10,000 won per household
Courier delivery fee: 300~500 won per unit
Additional services:
Robot delivery service: 1,000 won per unit
Expedited delivery service: 2,000 won per unit
Additional Income:
Kiosk and in-app advertising revenue
Renting additional service space within the center
Profitability Analysis (500 households, 80% monthly occupancy):
Monthly income: Approximately 6.2 million won
Annual income: approximately 74 million won
Payback period: approximately 11 to 17 years
Expected effect
1. From the apartment residents’ perspective
Improved safety: The risk of traffic accidents is greatly reduced due to the reduction in vehicle traffic within the complex. In particular, the safety of children is improved.
Increased convenience: Items can be received 24 hours a day, and items can be conveniently received through robot delivery service. This solves the problem of receiving parcels for dual-income households or single-person households.
Theft Prevention: All packages are safely stored, so there is no need to worry about theft. Based on 500 households, approximately 150,000 packages are safely stored annually without risk of theft.
Hygiene Management: All incoming items are disinfected to reduce the risk of infectious diseases such as COVID-19.
Environmental improvement: Packaging materials can be processed immediately, reducing household waste and improving the rate of separation and collection. Approximately 40 tons of packaging materials can be efficiently processed annually.
2. From the courier side
Work efficiency: Delivery time is reduced by approximately 60% by delivering in bulk to one location without visiting individual households.
Cost savings: Increase the number of deliveries per article, reducing labor costs.
Conflict Resolution: Conflicts related to apartment access and parking are completely resolved.
Reduced liability: The financial and psychological burden on couriers is greatly reduced by reducing liability related to theft after delivery.
3. Socio-economic aspects
Job Creation: New jobs will be created in logistics center operations and delivery. Based on 500 households, approximately 15 to 20 jobs are expected to be created.
Local economic revitalization: Economic activity centered around logistics centers increases, and local commercial districts are revitalized.
Reduced traffic congestion: Reduced delivery vehicles within the complex will ease traffic congestion. For a 500-unit complex, there will be an average of 20-30 fewer vehicles per day.
Environmental protection: Efficient delivery system reduces carbon emissions. Annual CO₂ emissions are reduced by approximately 6 tons.
Improving the living environment: Creating a safe and comfortable living environment improves overall residential satisfaction.
Logistics Industry Innovation: Innovation in logistics services utilizing cutting-edge technologies is promoted, strengthening the competitiveness of the domestic logistics industry.
Apartment logistics centers are innovative solutions that go beyond simple convenience facilities and are future-oriented residential infrastructure that solve various social problems related to parcel delivery. In particular, if introduced from the design stage of new apartments, they can be implemented more efficiently, and in the long term, they are expected to become essential facilities for all apartment complexes.
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Analysis of the originality and feasibility of the apartment logistics center idea
Status of global similar solutions
Looking at the idea of apartment logistics centers from a global perspective, there are already solutions that are partially similar, although not exactly the same. In particular, smart systems related to parcel receipt are being actively introduced worldwide.
Similar solutions exist
Smart Parcel Locker System
My Parcel Locker in Australia offers parcel locker systems for apartment buildings and supports all courier companies and postal services. The system provides basic parcel storage, but does not have robotic delivery or sanitization capabilities.
Smart Package Room
SmartRent’s “Smart Package Room” is a system that identifies, tracks and manages all packages, using lasers and audio prompts to help residents easily find their packages. This solution utilizes more space than a locker, but does not include robotic delivery capabilities.
Diversification of parcel pickup and delivery options
According to a report analyzing logistics trends through 2025, alternative delivery points such as Amazon Lockers, DHL PaxStation, and Alibaba’s Cainiao Smart Lockers are on the rise, and an estimated 20 billion packages are expected to flow through these convenient pickup points by 2025-2026. This provides unprecedented control over the delivery of the consumer while relieving the burden on the last-mile network.
Apartment Smart Trends
The smart apartment market is expected to reach USD 6.81 billion by 2029, growing at a CAGR of 12.9%. This includes trends such as IoT connectivity, smart parking solutions, and efficient waste management systems.
Unique elements of the apartment logistics center
The proposed apartment logistics center idea contains the following unique elements when compared to existing solutions:
An integrated approach
While existing parcel lockers or package rooms simply focus on parcel storage, the proposed apartment logistics center provides comprehensive services from receiving to hygiene management, robotic delivery, and packaging material handling. This comprehensive approach differentiates it from existing solutions.
Robot-based delivery system
While most existing solutions have adopted a method in which residents visit in person, the proposed logistics center includes an automatic delivery system using robots. As the nation’s first ‘urban autonomous robot service’ began in Seongnam City, Gyeonggi Province in September 2024, robot delivery technology is at a feasible stage.
Hygiene management function
In a situation where interest in the hygiene of parcel items has increased since COVID-19, the disinfection and sanitization function for all incoming items is a unique element. This is a function that is rarely found in existing parcel locker systems.
Local Job Creation Model
The model of providing part-time jobs to apartment residents through a direct delivery option for residents is a unique element that goes beyond simple logistics services and expands to community activation and social value creation.
Eco-friendly system
Contributing to environmental protection by providing a space for packaging removal and recycling is an aspect that is overlooked in most existing solutions.
Business Feasibility Analysis
Technical feasibility
Automation and robotics
Automation technology in the logistics sector has already advanced to a considerable level. Like the system that POSCO DX built in Hanjin Daejeon Smart Mega Hub, product classification systems using artificial intelligence (AI) and image recognition technology have already been commercialized. Robot delivery is also in actual operation, as in the case of Seongnam City, so its technological feasibility is high.
Building facilities
It is technically possible to build a logistics center of 500 to 1,000 square meters in an apartment complex. The Tizona Logistics Center built by Bridgestone in Burgos, Spain, is a good example of a smart logistics facility that incorporates the latest technology. Of course, the scale is different, but the technical principles can also be applied to apartment logistics centers.
Economic feasibility
Initial investment cost
The initial investment cost for a 500-unit apartment is 800 million to 1.3 billion won, which is a significant investment. However, considering that the global smart logistics center market is expected to grow from about 27 trillion won in 2023 to about 53 trillion won in 2028, there is a possibility of attracting investment.
Profitability
Based on 500 households, monthly income of 6.2 million won and annual income of 74 million won are expected, and the investment recovery period is expected to be approximately 11 to 17 years. This is a rather long recovery period, but considering the high growth rate (12.9%) of the smart apartment market, it may be worthwhile as a long-term investment.
Operating expenses
Labor costs, system maintenance costs, utility bills, etc. are continuously incurred, but operational efficiency can be improved through automation systems. In particular, profitability can be improved through additional fees for robot delivery services and advertising revenue.
Market feasibility
Consumer demand
With the continued growth of online shopping, consumer expectations for courier delivery are also increasing. According to DHL’s 2024 Delivery and Returns Report, 61% of global consumers want next-day delivery but are unwilling to pay extra for it. This suggests that there is a high demand for efficient delivery systems.
Competitive environment
Competition is fierce as alternative services such as unmanned parcel boxes and smart mailboxes are on the rise. However, the proposed apartment logistics center can differentiate itself by providing a more comprehensive service.
Resident acceptance
The public’s reaction to the introduction of the new system is an important variable. However, given the clear benefits, such as the resolution of the problem of package theft, delivery conflicts, and increased convenience, the likelihood of acceptance is high.
conclusion
The idea of an apartment logistics center is not a completely new concept, but rather an innovative model that integrates and expands several existing solutions (smart parcel boxes, package rooms, robot delivery, etc.). In particular, elements such as robot delivery, hygiene management, packaging material handling, and local job creation are unique elements that differentiate them from existing solutions.
In terms of business feasibility, it is technically feasible and has market potential considering the high growth rate of the smart logistics and smart apartment markets. However, the high initial investment cost and long investment recovery period are challenging factors. To overcome this, active participation of apartment complex residents, government support, and cooperation with delivery companies are essential.
In particular, if a logistics center is planned from the design stage of a new apartment, more efficient implementation will be possible, and in the long term, it is highly likely that it will become an essential infrastructure for apartment living environments.
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