TZ Limited (ASX:TZL) has signed Fastway Couriers to its team developing a parcel distribution and on-line logistics network for purchases by on-line shoppers.
Australian Couriers Pty Limited trading as Fastway Couriers is a 20 year old Australian business with a national network of over 700 courier franchisees across 25 regional franchises across Australia.
The agreement with TZ sets out a 12 month trial for the parties to work together to exploit TZ's A.D.A.M. Parcel Locker System.
The agreement with Fastway, coupled with those previously announced with Toll Group and Temando, means that TZL now has teaming agreements in place with service providers which based on TZ's estimates, could represent in excess of 60% of the parcel deliveries in Australia.
As part of the trial, Fastway will utilise the Parcel Locker Network for on-line parcel deliveries and other service offerings under agreed commercial terms.
Subject to the success of the program and mutual satisfaction, Fastway and TZ will look to cement an agreement.
In recent months, TZ chairman Mark Bouris and executive director Ken Tang have rung in major breakthroughs including:
- Commercial relationships that establish access for TZ Parcel Locker infrastructure across multiple locations around Australia (collectively these property partners have access to several hundred sites);
- Partnership agreements with significant e-commerce and logistics companies that establish parcel flow and revenue to the locker network including agreements with the Toll Group, Australia's largest logistics provider and Temando, the market's leading and most comprehensive Delivery System Platform; and
- The continued development of the TZ technology and software that enables an integrated end-to-end parcel locker solution.
The prize for TZ is significant as it looks to land a piece of the lucrative business-to-customer on-line logistics market that is growing exponentially.
TZ is poised to go head to head with the Australia Post in the e-commerce market, including plans to expand into Asia.
Bouris and Ting have been building the foundations for an agnostic parcel distribution network to allow it to take on Australia Post.
TZ saw a gap in the market for secure electronic lockers, which would allow customers to buy items online, and then accept delivery without waiting at home all day for the courier to arrive.
TZ has signed deals with partners to have lockers installed in various locations, including petrol stations, convenience stores and newsagencies.
Having just completed a successful trial providing its ADAM (automated delivery asset manager) lockers to Singapore Post, which will see at least 100 banks of lockers deployed across the country, it is eyeing the huge latent potential in untapped neighbouring markets.
Richard Thame, Fastway CEO said of today's agreement: "Over the years there has been substantial growth in the online retail industry, including a corresponding increase in residential deliveries. Fastway are responding to this growth by providing a range of intelligent tools and freight options, to make sending and receiving goods simpler and more convenient for everyone.
We realise that online shoppers are busy people and we're constantly investigating new ways to improve their experience. By providing customers with the option of delivery to one of TZ's Locker locations, customers will receive a better overall experience by allowing them to simply pick up their parcels at their convenience, 24 hours a day, seven days a week."
This latest teaming arrangement demonstrates TZ's continued efforts to not only secure access to prime locations and to lock in property partners for the A.D.A.M. Parcel Locker System but also to reinforce TZ's commitment to work in a carrier agnostic environment.
It also continues to demonstrate TZ's ability to partner broadly across the market to deliver a customer oriented offering that can capitalise on an emerging market need and ultimately provide the consumer the benefit of choice.
A.D.A.M.
The A.D.A.M. Parcel Locker System provides a flexible delivery option that will benefit on-line retailers, logistics providers and customers alike.
Today's teaming agreement is another positive step in the commercial roll-out of the locker network.
Intriguingly, TZ said it anticipates providing a Deployment Update regarding locker installations later this week.
Analysis
Although unofficial metrics, today's agreement could represent partnerships for TZ that account for as much as 60% of the parcel deliveries in Australia.