What3words improves DPD delivery efficiency by 15% in test drive

Using what3words’ innovative addressing technology can improve delivery efficiency by up to 15%, a joint test by DPD and Mercedes-Benz in Germany showed.

The recent test carried out in Nagold, 50km south of Stuttgart, aimed at finding out whether what3words integrated into the Mercedes-Benz Sprinter on-board navigation system could increase efficiency in package delivery significantly.

Instead of using street names, what3words divides the world into 3m squares and gives each square a simple and unique address made up of three dictionary words, using local languages. It can thus provide very precise addresses, including in places that have no street names.

In the test, two DPD drivers in almost identical Mercedes-Benz Sprinter vans with MBUX navigation systems each delivered about 50 packages to business and residential addresses on test routes throughout the town, which they were not familiar with. One vehicle used the what3words location technology while the other used a standard navigation system with traditional street addresses.  

Impressively, the results showed an efficiency improvement of 15% for the driver using the what3words technology, who finished his delivery route 30 minutes ahead of his colleague.

The test showed that 80% of the efficiency gain resulted from providing the what3words address for the optimal parking spot. This reduced driving time and time spent searching for a parking place. The remaining 20% of the efficiency gain came from having a what3words address for the precise handover point, reducing drivers’ time on foot.

“We are always looking for new ways and means of supporting our drivers in their tasks and increasing the efficiency of our processes,” said Thomas Steverding, Senior Group Manager, OPS Process and Development at DPD. “When we became aware of what3words we wanted to find out whether we could benefit from more precise localisation of the delivery targets using the 3 word address.”

Steffen Raiber, Manager Industry Management CEP & Logistics at Mercedes-Benz Vans, added: “The test has shown that the system is a big improvement especially for new drivers and those that have to work in an unfamiliar delivery area. It also removes a lot of stress from the driver and makes his job much easier. In times when the number of packages is continuously increasing, there is a clear competitive advantage.”