The Locker Alliance Network (LAN), a cutting-edge initiative under Singapore’s Smart Nation vision, aims to revolutionize parcel pickup processes. This government-led project seeks to enhance the last-mile delivery efficiency for Logistic Service Providers (LSPs), thereby reducing their operational footprint. However, it remains unclear how different locker network designs affect delivery efficiency.

In this work, we develop a data-driven approach to optimize the locker network design with the goal of maximizing delivery efficiency. Leveraging data from LAN’s pilot program in Singapore, our research underscores the pivotal role of network design in last-mile delivery efficiency. A poorly designed locker network can inadvertently reduce productivity by increasing the length of delivery trips, thus negating the potential benefits of the system. In contrast, an optimized network can mitigate this negative impact on delivery efficiency. Beyond network design, low customer adoption emerges as another critical bottleneck. Our findings show that as more customers shift to locker pickup, especially in mixed-trip modes, delivery efficiency improves. Therefore, network design and a higher adoption rate of locker pickup are key to LAN’s success. The government’s role in driving deeper customer engagement, alongside efforts to optimize network design and delivery operations, is vital to unlocking the full potential of this smart nation initiative.