Importantly, this marks TZ's first seven figure purchase order, according to executive chairman Mark Bouris.
The lockers allow e-commerce customers to pick up parcels at their own convenience rather than being forced to stay at home to receive them.
The order adds to the success the company has been enjoying in Australia with the addition of high profile retailers such as Nike, Tony Bianco shoes and Pamper Hamper Gifts to its A.D.A.M. online parcel delivery network.
The lockers, which are to be supplied and installed in Singapore before the end of the calendar year, represents an acceleration of Singapore Post's plans and a signal of their intent to build a network of up to 100 Parcel Lockers in the next 12 months.
Singapore Post customers had responded positively to the pilot program of five POPStations that were installed in April this year.
The new POPStation lockers will be placed at locations such as residential and office areas, and around shopping malls that are accessible 24/7 to the public.
Named POPStations in Singapore, or "Pick Own Parcel Station", these have the potential to revolutionise the parcel delivery in Singapore according to Singapore Post. These 24/7 smart lockers enable customers to collect their parcels in 5 simple steps, in their own time; be it after office hours, over the weekend or on a public holiday.
"This order demonstrates Singapore Post's belief in our technology and our ability to deliver against their expectations," Bouris said.
"It is a significant endorsement of our business. Our service and development teams have done an excellent job in meeting Singapore Post's program objectives and to supporting them with their specific requirements.
"The lockers have performed extremely well in the Singapore climate and are maintaining a greater than 99.9% uptime.
"Together with our other secured pipeline business, it puts us on track to achieve our ambitious revenue target of A$8M+ this financial year."
TZ lockers meet Singapore demand
The additional smart locker purchase orders are a clear validation of TZ's ability to meet Singapore Post's requirements and also confirm the company's products are suitable for the climatic and geographic conditions in the Asian region as highlighted by Bouris.
Singapore's business to e-consumer industry (B2C) is rapidly expanding with an estimated market value of S$1.6 billion (A$1.4 billlion) in 2011. This is expected to grow to S$4.4 billion by 2014, according to Singapore Post.
"The POPStation is one such example where customers get service faster and closer to their homes or offices," Singapore Post Group chief executive officer Dr Wolfgang Baier said in an earlier news release.
During the earlier trial, 80% of users retrieved their parcels within three calendar days, according to a Singapore Post while 60% of users collected their parcels after office hours while 30% collected them on weekends.
The period around 7pm was found to be the busiest, where most users visited POPStation on their way home from work. In addition, 30% of users collected their parcels over the weekend.
Singapore Post said these observations reinforce the need to offer 24/7 services that put the control of time back into customers' hands.
5 Step Process
The POPStation for consumers involves five simple steps:
- Step 1: Users receive an SMS or email notifying them to collect their parcel at a POPStation.
- Step 2: Users 'pop' over to the POPStation location.
- Step 3: Users scan a QR code or key in a pin number to open the locker at the POPStation.
- Step 4: Users collect their parcel from the locker.
- Step 5: Users close the locker door.
Singapore Post also plans to eventually allow users to post parcels via the POPStation.
TZ is also sprinting ahead in Australia, where it is taking on Australia Post by increasing the number of venues and locations that its ADAM parcel lockers are located at.
It also boosts a trump card in its partnership with Temando, which boasts relationships with over 30,000 retailers around the world that use its applications for direct online purchases between 200 different delivery services.
This meshes well with TZ's carrier agnostic ADAM lockers that accept deliveries from any courier.
TZ's Singapore Post order opens a gateway to further orders in the Asian region given that the city-state is often an early adopter of new technology.
The order of 30 banks of smart lockers puts the company well on the path towards meeting the A$8 million revenue target for its TZI business, which includes the smart locker division.
Further locker orders are also likely to meet Singapore Post's intent to build a network of up to 100 POPStations island-wide in the next 12 months.
Taken together with TZ's progress on building its Australian online parcel delivery network and potential roll-out of more ADAM lockers to Westfield Shopping Centre venues, momentum is building and based on revenue forecasts the current market valuation of $20 million is light.
Proactive Investors continues to value TZ Limited at between $0.16-$0.20 within the next 6-9 months.
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