Out-of-Home (OOH) Solutions in Logistics

What exactly are out-of-home (OOH) solutions in logistics?

In logistics, out-of-home (OOH) solutions are all delivery concepts in which parcels or goods are not delivered directly to the end customer's private front door (door-to-door). Instead, consolidated delivery is made to external, easily accessible pick-up points. These primarily include automated parcel stations (lockers) and supervised parcel shops in retail. From the point of view of warehouse logistics, this means a massive shift in the flow of goods: instead of driving to hundreds of individual addresses with unpredictable routes, freight forwarders and courier, express and parcel services (CEP) bundle large volumes that are controlled directly from the central logistics property to the OOH locations.

Why OOH solutions are the strategic backbone of the industry

The e-commerce boom is confronting urban logistics with an immense cost trap. Rico Back, Managing Partner of SKR AG, recently succinctly summarised the core problem of the last mile: "The front door is convenient, but expensive" . If delivery drivers do not meet end customers, expensive multiple journeys are made. The industry draws a clear conclusion from this: Out-of-home solutions such as vending machines and parcel shops are no longer just an additional service these days. They are rapidly developing into the strategic backbone of the entire delivery infrastructure. Bundled deliveries to OOH networks drastically reduce transaction costs (cost per drop) for logistics service providers, while the success rate for initial delivery rises to almost 100%.

The influence of OOH on logistics real estate and hall architecture

The shift towards OOH networks has a profound impact on the design of a modern logistics property. Classic distribution centers are changing:

• Cross-docking layouts: The hall functions less as a long-term storage and more as a high-frequency transshipment point. OOH logistics requires logistics properties with I-Shape or U-Shape layouts and an extremely high number of loading gates (ramps) to handle many vans at the same time.
• Mezzanine levels: In order to sort the sheer volume of small e-commerce parcels for OOH distribution, halls need massive mezzanines. Highly automated sorting systems (sorters) are installed here.
• Access routes for Sprinter fleets: The property's outdoor facilities (yards) must not only accommodate 40-ton trucks, but also provide space for huge fleets of Sprinters and vans that fill the city's OOH vending machines.

Contract Logistics: New Service Models through OOH Networks

Out-of-home solutions open up highly profitable business areas for contract logistics. Contract logistics companies no longer only store pallets for retailers, but also act as system administrators for the OOH infrastructure. When consumers place returns in a parcel terminal, the contract logistics provider bundles these returns, collects them in large tranches and sends them to efficient returns management (value-added services) in the company's own logistics hall. The items are checked there, repackaged and immediately booked back into the active inventory of the warehouse management system (WMS). This makes the contract logistics provider an indispensable link between the OOH network and online retail.

The hall in the city: micro-hubs and urban logistics

The dense placement of OOH machines requires appropriate hubs in the immediate vicinity. This is where the commercial real estate market is changing: so-called city logistics hubs (micro-fulfillment centers) are moving directly into urban centers. Since large-scale halls in city centers are often lacking or unaffordable, multi-level warehouses or converted underground garages are increasingly being used to supply OOH stations with emission-free and efficient cargo bikes or electric vans.

Facts, figures, data: Focus on a billion-dollar market

How seriously the industry takes the topic of OOH is shown by massive investment sums. Current market movements and company valuations in the high billions make it clear that dense delivery networks will determine the future profitability of logistics.

• Network expansion: DHL Group, for example, plans to double the number of its pick-up and drop-off stations to 30,000 units by 2030.
• Investment focus: Almost all major parcel service providers are currently investing enormous budgets in the nationwide expansion of their OOH networks, with some of them also using open-provider (white-label) machines.

FAQ: Frequently asked questions about OOH in warehouse logistics

Question: What impact does OOH have on the use of space in the logistics hall?

Answer: Since OOH delivery is extremely fast (often less than 24 hours), the need for deep pallet racks decreases. Instead, more free hall space on the ground floor is needed for dynamic sorting processes and staging areas for loading.

Question: Are OOH solutions displacing the classic logistics property?

Answer: No. The classic logistics property at the motorway junctions (as a European or national distribution centre) remains indispensable. However, OOH is changing the downstream regional and urban halls, which are now being optimised much more for throughput speed than storage capacity.

Question: Why are contract logistics companies increasingly relying on provider-open OOH networks?

Answer: Open provider (white-label) machines allow logistics service providers to process shipments from different clients via the same infrastructure. This increases the utilization of the machines, massively reduces transaction costs and justifies the high investments (CAPEX) in the OOH hardware.

Conclusion: OOH as the architect of tomorrow's supply chain

Out-of-home solutions are much more than just convenient pick-up boxes for end consumers. They are a massive structural driver for the entire real estate and logistics industry. Anyone renting or planning a new warehouse space today must prepare the property for the fast, high-frequency handling processes of the OOH networks. Only logistics halls that enable the fast inflow and outflow of Sprinter fleets and offer contract logistics companies enough space for automated sorting and returns management will meet the requirements of future e-commerce.

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