“We have always believed in the omnichannel approach of integrating different delivery networks, combined with the bet of proximity logistics, as a way to focus on for a more sustainable approach.”
So begins the lengthy interview with Lorenzo Maggioni and Damiano Frosi, CEO and Head of Logistics of GEL Proximity, respectively, that tavologiovani.it dedicated to our reality after winning last October’s “Enterprise and Value Award” from the Milan Monza Brianza Lodi Chamber of Commerce.
Below is the full text of the interview.
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How did the idea for Gel Proximity come about?
Two longtime friends – Lorenzo and Damiano – “found each other” professionally at a national logistics conference in November 2018. From that meeting, the intuition.
Lorenzo Maggioni, with important experiences in international contexts of Big Tech Companies and in the field of e-commerce, and Damiano Frosi, Director of the Contract Logistics “Gino Marchet” Observatory of the Politecnico di Milano, started working on the idea in 2019, studying the main reasons for abandoning online shopping carts and identifying in logistics aspects one of the main reasons.
“We looked, in particular, at foreign markets where the potential of “out-of-home” deliveries (in automated lockers or in commercial establishments), which in Italy are still not very widespread, was beginning to be glimpsed,” Lorenzo says-“we noticed the great difficulty of our country in technologically integrating the many distribution networks present and necessary to have a widespread proximity proposal.”
This is the magic word “proximity,” now widely used but in 2018 still unused, on which the founders bet in choosing the name, along with a concept of “fluidizing” for companies… hence the name GEL Proximity.
What are the elements of innovation that GEL Proximity wants to bring to the logistics industry?
GEL Proximity is a technological platform, a connector, that facilitates relationships and information exchange between the world of online sales and tens of thousands of pickup points, physical or automated, belonging to different Italian last-mile networks.
“Logistics operators, last-mile networks, institutions, marketplaces, and major online stores have immediately shown particular attention to GEL Proximity, which is shaped by the need for simplification and sustainability expressed by the market itself,” Damiano comments.
As the founders explain, the innovation lies in particular in the omnichannel approach of integrating the many different players and networks into a single platform, combined with the gamble of proximity logistics as a mode to focus on for a more sustainable approach to delivery, thanks to the certainty of the delivery itself (proximity guarantees 100 percent delivery success, unlike home delivery) and the possibility of being able to make fewer kilometers in deliveries, thanks to the delivery of multiple packages in a single stop.
“Proximity also makes it possible to solve one of the “Achilles’ heels” that still characterize the e-commerce market and, more generally, last-mile distribution, namely the management of returns, the onerousness of which can be greatly reduced by taking advantage of proximity points, while also providing a useful service to the end customer,” Lorenzo adds.
Logistics and sustainability: what is the vision of Gel Proximity?
“The platform was born precisely from the desire to support online sales in a sustainable way, effectively combining two potentially divergent approaches: omnichannel and “customer centric” logistics with sustainable logistics,” Lorenzo explains.
The online consumer, thanks to GEL Proximity, can choose the preferred pickup point within their daily proximity, while supporting the reduction of environmental impact in deliveries. This approach also impacts sales (decreases cart drops), end-user experience, and logistics costs.
The technology designed by GEL Proximity helps stores and operators to rationalize deliveries by optimizing relationships and solving all the critical moments of the process related to last-mile management. The pandemic has acted as a process accelerator involving not only an explosion of online sales but also the need to prepare a series of useful services to govern processes, the explosion of volumes and the resulting environmental impact.
“Sustainability is now a key factor in the purchasing choices of digital consumers: 7 out of 10 Italians are increasingly aware of environmental issues, while 80 percent believe that companies should consider the issue of sustainability in their business choices. Logistics can no longer make exceptions, and it becomes more crucial today than ever to rely on innovative technological solutions such as GEL Proximity,” Damiano comments.
“Our help to the environment is evident above all in GEL’s ability to zero missed home deliveries thanks to the support of thousands of pickup points and lockers active throughout the country, in addition to the parcel collecting system that allows the efficiency of routes and vehicles used for last-mile deliveries.”
The impact of the project is also of a social nature, as it allows the revitalization of small activities and businesses within towns and cities, remunerating them for the activity performed and giving the possibility of selling products or services to consumers who enter the same to collect their parcel or deliver a return.
It is precisely because of the combination of environmental sustainability and positive impact on the local economy that GEL Proximity won the prestigious “Enterprise and Value Award” from the Milan Monza Brianza Lodi Chamber of Commerce during the awards ceremony on October 2, 2022 at La Scala Theater.
“Stepping on the stage of La Scala for the first time to receive such a prestigious award was an emotion that I will hardly forget,” Damiano comments.
What are Gel Proximity’s next goals?
2021 was the year of the solution’s entry into the market; 2022 is showing significant growth in parcels handled by the platform coupled with an increase in the startup’s visibility; 2023 will be the year of consecration and large volumes. This is just the first step in putting the customer – who is today profoundly changing their buying habits – back at the center and growing last-mile logistics in a sustainable way.
Moreover, while in the B2C scenario pickup points become places where consumers go to pick up or return packages, in the B2B world pickup points become real pickup or decoupling points for business logistics. The evolutions and potential for development are many, and the common desire is to improve current practices by supporting the logic of parcel collecting, with the concrete goal of redesigning city flows for a new smart mobility.
So there is much excitement: lots of work and good intentions for the future of GEL Proximity!
