HIGH-profile businessman Mark Bouris and his mate James Packer have joined forces once more - this time to take on the might of Australia Post.
TZ Limited, chaired by Mr Bouris, will unveil a smart-locker parcel delivery network called Adam that will soon be installed at 50 sites across Australia.
TZ has struck a deal with one of Australia's largest e-commerce delivery companies, Temando, to deliver parcels to the network of Adam lockers, which can be accessed 24 hours a day.
Earlier this year Mr Packer's private investment company, Ellerston Capital, paid $5 million to take a stake in Temando, which delivers parcels for 73 of the 100 biggest retail companies in Australia. The private company ranks second only to Australia Post for annual parcel deliveries.
The last time Mr Bouris did business with the Packers was in 1999, when he talked Kerry Packer into paying $25 million for a stake in his company Wizard Financial Services.
He sold Wizard to global giant GE for $500 million just five years later. Mr Bouris netted $100 million and PBL $58 million from the sale.
TZ's lockers will allow customers to pick up parcels 24 hours a day. Once delivered, customers will receive an electronic message with a unique code that will give them one-off access. "What we are doing with Adam is addressing one of the key problems of online retail, and that's getting the parcels to the customers when and where they want them," Mr Bouris said.
Tuesday's unveiling of the new delivery network - the first lockers will be located in Sydney's CBD and be working by January - ends a tough year for TZ, during which it lost a tender to supply lockers to Australia Post.
"Losing the Australia Post tender, that was a major setback, but we were able to establish during the process that we have one of the top five parcel systems in the world, and that's not bad for a little Aussie company," Mr Bouris said.
"We lost out to a Polish company in Australia. That was tough, and it leaves a bitter taste in my mouth, but I've done something about it.
"We've since beaten that Polish company to win a tender with Singapore Post."
Mr Bouris is keen to show Australia Post what it missed out on.
"Australia Post is the big incumbent. They're never going to think I'm a problem, but I am after their market share," Mr Bouris said. "They own the market, and I want some of it."
Temando chief executive Carl Hartmann said the Adam lockers provided a much-needed service for online buyers, who are tired of having to go to post offices to pick up parcels.
Any merchant or delivery service, including Australia Post, will be able to use the Adam locker network. "A lot of thought has gone in to Adam, in terms of the locations of the lockers, parking and the ease of use," Mr Hartmann said. "We can see there being 100 or so locations by the end of next year.
"A few years ago it was all about free delivery, now people are looking for convenience. The more they can fit picking parcels into their lifestyle, the better."
The rise of online retail has seen massive growth in parcel delivery in recent years. Data from Australian Customs shows the volume of small parcels delivered to Australia from overseas has doubled from 23.5 million pieces in 2006-7 to 48 million pieces in 2010-11.
Frequently Asked Questions about this Article…
What is the Adam smart‑locker parcel delivery network and who is behind it?
Adam is a smart‑locker parcel delivery network being rolled out by TZ Limited, chaired by Mark Bouris, with support from James Packer. The network will let couriers deliver parcels to secure lockers for 24‑hour customer collection.
How do Adam lockers work for customers and how do I collect a parcel?
When a parcel is delivered to an Adam locker, the customer receives an electronic message containing a unique one‑off code. That code grants access to the locker so the parcel can be picked up any time — Adam lockers are accessible 24 hours a day.
Which delivery companies will use the Adam locker network and what role does Temando play?
Temando, one of Australia’s largest e‑commerce delivery companies, has struck a deal to deliver parcels to the Adam locker network. Temando delivers for 73 of the top 100 retailers and ranks second only to Australia Post for annual parcel deliveries.
How many Adam locker locations are planned and when will they start operating?
TZ plans to install Adam lockers at 50 sites across Australia initially, with the first lockers located in Sydney’s CBD and expected to be operational by January. TZ and Temando expect there could be around 100 locations by the end of next year.
How does the Adam locker rollout compete with Australia Post?
TZ sees Australia Post as the incumbent and is aiming to take some market share by offering convenient 24‑hour parcel pickup. TZ previously lost a tender to supply lockers to Australia Post (to a Polish company) but says it has since won a tender with Singapore Post, and wants to show Australia Post what it missed.
What are the convenience benefits of Adam lockers for online shoppers?
Adam lockers give shoppers an alternative to visiting post offices to collect parcels. Temando and TZ say customers now prioritise convenience — being able to pick up parcels at a time and place that fits their lifestyle — over only free delivery.
What is the connection between James Packer, Ellerston Capital and Temando?
Earlier this year James Packer’s private investment company, Ellerston Capital, paid $5 million to take a stake in Temando, the delivery company partnering with TZ to supply parcels to the Adam locker network.
How fast has parcel delivery grown in recent years in Australia?
Data cited in the article from Australian Customs shows cross‑border small parcel volume nearly doubled, rising from 23.5 million pieces in 2006–07 to 48 million pieces in 2010–11, reflecting rapid growth in online retail and parcel deliveries.
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