DPD Tests Innovative Addressing Solution for Package Delivery

DPD, Mercedes-Benz Vans, and what3words have teamed up for a test to increase efficiency in package delivery. The efficiency improvement was a remarkable 15 percent compared to conventional navigation systems.

(Aschaffenburg/Stuttgart) Two experienced package deliverers from DPD, two nearly identical Mercedes-Benz Sprinter vans, and what3words joined forces for a special logistics efficiency test in Nagold, Germany. The aim was to determine whether the innovative location system what3words, integrated into the on-board navigation system of the Mercedes-Benz Sprinter, could enhance efficiency in package delivery. The test area covered the entire city and included about 50 deliveries. The impressive efficiency increase of 15 percent for the driver when using what3words compared to a conventional navigation system with street addresses was noteworthy.

what3words is an innovative and very simple way to identify precise locations anywhere in the world. what3words has divided the world into 3m squares and assigned a simple and unique address to each square, consisting of three words from the dictionary. This includes places where no regular street addresses exist, such as large industrial areas. In 2017, Mercedes-Benz was the first car manufacturer in the world to integrate the ability to search for and navigate to what3words addresses into its proprietary MBUX system.

The Constant Search for Efficiency Improvement

Thomas Steverding, Senior Group Manager, OPS Process and Development at DPD Germany: “We are constantly looking for new ways and means to support our drivers in their tasks and to increase the efficiency of our processes,” says Thomas Steverding, Senior Group Manager, OPS Process and Development at DPD Germany. “When we learned about what3words, we wanted to find out if we could benefit from a more accurate localization of delivery destinations with the 3-word address.”

Mercedes-Benz Vans, DPD, and the British start-up what3words conducted the test to find out what efficiency gains could be achieved by using the integrated navigation to what3words addresses, as found in the vehicles of the Mercedes-Benz Sprinter. The test also included the possibility of sending what3words locations remotely to the vehicle via push notification, a feature currently in development.

Chris Sheldrick, co-founder and CEO of what3words, explained that “street addresses rarely point to large locations such as factories or exhibition halls, so drivers waste time searching for the correct unloading points. This is frustrating for drivers and leads to time and fuel inefficiencies for the company, as well as a poor experience for customers who may miss or receive deliveries late. The precise addressing system of what3words helps logistics drivers who are unfamiliar with their delivery area reduce the time they spend searching for exact delivery points. And in this specific test, they were also assigned the exact parking spot near the delivery entrance, which is crucial for last-mile deliveries that are conducted on foot.”

Photo: DPD

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