Practices > Good Practices > Smart Incentives > Parcel Terminal

During 2008-2010, Cleveron, then named SmartPOST, created an automated parcel terminal network that covered the entire territory of Estonia and started to provide logistic services by using the network.

Parcel terminals, i.e. self-servicing ‘post offices’, are units that are located at shopping centres all over Estonia (53 terminals currently). To send the parcel via a Parcel Terminal one needs to take his or her parcel to the parcel terminal at the shopping centre, enter the mobile phone number of the recipient, choose an appropriate parcel terminal for the receiver, pay for the service with a bank card and put the parcel into a locker inside the terminal. The recipient of the parcel will receive a text message to his or her mobile phone the next day. By entering the unique door unlocking code to the parcel terminal the receiver will get access to the locker containing his or her parcel.

In order to find new solutions for the product a cooperation with the designers was started (Estonian Academy of Arts, product development department).

Role of partners?
The task of the product development department of Estonian Academy of Arts was to improve the design of parcel terminals, its user friendliness and accessibility, while also taking into account security. Another important issue was the reduction of climate changes for outdoor terminals. The final solution of designers offered a modular-based design which raises its exportability. The development of automatic parcel machine for outdoor conditions and locking systems was carried out through an Innovation voucher grant and financial support scheme for R&D projects provided by Enterprise Estonia and co-financed by the European Regional Development Fund, whereby companies can use the services of R&D institutions in order to develop their products and services.

Why is it needed?
The objective of the innovation voucher grant is to Increase competitiveness of Estonian SME-s through transfer of knowledge and technology, expansion of cooperation with R&D institutions and increase of capability of protection of intellectual property. It is an excellent opportunity for companies to develop their products and services, to test and prototype innovative solutions and to get cooperation partners from the creative industries sector for the future (like it was the case by the parcel terminal project – the cooperation with the designer has followed with other projects).

What are the success factors and challenges?
Based on the market potential Estonian Development Fund made its first investment into the Cleveron’s (SmartPost OÜ) technology of self-service parcel terminals and for international sales. By the second half of 2009 the launched network had rapidly grabbed significant market share in parcel deliverance for the people in Estonian.
SmartPOST OÜ positioned itself as a technological enterprise for which the parcel terminals network was necessary as level of development, sales reference and for earning circulating capital. The company gained sufficient fame in order to concentrate on expanding to foreign markets of its Estonian network of parcel terminals to the Finnish logistics company Itella Corporation.

Technological solutions play an important role in providing service with parcel terminals, but even more important is the way you offer the entire solution. Only technology will not do, you will also need specific skills to sell and market the service, to run client service, to develop and manage logistics processes, and to assess business profitability. Parcel terminals have been designed specifically with the end user in mind, to allow self-service sending and reception of parcels in the most client-friendly manner. One of the main advantages of Cleveron’s automatic parcel terminals is the modular layout of terminal lockers. This means that one central console could be complemented with 32-250 lockers depending on the requirements (including shapes).

Business name: Cleveron OÜ (former SmartPost OÜ)
Contact name: Arno Kütt
Address: Väike-Paala 1 (sales and project management)
Telephone: +372 5036904
City: Tallinn and Viljandi
Country: Estonia
E-mailarno(at)cleveron.ee
Websitewww.cleveron.ee
Legal status of Company: Ltd
Number of employees: 24
Nature of business: Technology in logistics
Name of company collaborating with: Estonian Academy of Arts; Disainum OÜ.
Title of project:  Parcel Terminal
Dates of activity from: 2008 – present
Activity Theme: Smart incentives
Project website:  http://www.cleveron.ee

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