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 network and who is behind it?
Adam is a smart‑locker parcel delivery network being rolled out by TZ Limited, chaired by businessman Mark Bouris. The network is supported by a deal with e‑commerce delivery company Temando, and the project also involves James Packer through his private investment activity noted in the article.
How many Adam lockers will be installed and where will they be located?
TZ says the Adam lockers will be installed at 50 sites across Australia initially, with the first lockers located in Sydney’s CBD and expected to be working by January. Temando’s chief executive also suggested there could be around 100 locations by the end of next year.
How do Adam lockers work for customers and how convenient are they?
Adam lockers provide 24‑hour access. Once a parcel is delivered, customers receive an electronic message with a unique one‑off code that grants access to a locker. The system is designed to let buyers pick up parcels when and where it suits them, improving convenience over visiting post offices.
What role does Temando play in the Adam locker network and what is its market position?
Temando will deliver parcels to the Adam locker network under a commercial deal with TZ. The article notes Temando delivers parcels for 73 of the 100 biggest retail companies in Australia and ranks second only to Australia Post for annual parcel deliveries.
How is James Packer involved and what did Ellerston Capital invest in?
James Packer is connected through his private investment company, Ellerston Capital, which earlier this year paid $5 million to take a stake in Temando — the delivery partner for the Adam locker network.
Will Australia Post and other couriers be able to use the Adam locker network?
Yes. The article states that any merchant or delivery service, including Australia Post, will be able to use the Adam locker network, which TZ positions as a neutral, widely accessible parcel solution.
How does the Adam locker rollout relate to TZ’s recent tender history and competitive ambitions?
TZ lost a tender to supply lockers to Australia Post earlier in the year to a Polish company, which Bouris described as a major setback. TZ established during that process it has one of the top five parcel systems in the world, later beating the same Polish company to win a tender with Singapore Post. Bouris has also said he wants to take some market share from Australia Post.
What does recent parcel volume growth mean for investors interested in delivery solutions like Adam lockers?
The article references strong growth in parcel volumes driven by online retail: small parcel deliveries to Australia from overseas rose from 23.5 million pieces in 2006–07 to 48 million in 2010–11. For everyday investors, that growth highlights rising demand for parcel infrastructure and convenience solutions such as Adam smart lockers, which aim to capture part of this expanding market.
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