Mark Bouris and the Packer business empire have united again, to take on the might of Australia Post.
TZ Limited, the company chaired by Bouris, are to unveil a parcel delivery network called Adam – soon to be installed at 50 sites across Australia.
The move comes after Bouris struck a deal with one of Australia’s largest e-commerce delivery companies – Temando.
Earlier this year James Packer’s private investment company, Ellerston Capital, paid $5 million for a stake in Temando which delivers parcels for nearly three-quarters of Australia’s 100 biggest retail companies. Only Australia Post outperforms Temando for deliveries.
In 1999 Kerry Packer paid $25 million for a stake in Bouris’ company Wizard Financial Services, which five years later Bouris went on to sell to global giant GE for $500 million.
TZ’s smart lockers allow customers to pick up parcels 24/7. Customers will receive an electronic message with a unique code that will give them one-off access to the locker.
“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 told reporters.
This week’s unveiling of the new delivery network ends a difficult year for TZ, during which it lost a tender to supply the lockers to Australia Post.
“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.
Mr Bouris says that he 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 CEO Carl Hartmann said the Adam system provided a much-needed service for online buyers, who are tired of using post offices with limited opening times 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.”
Online retailing has seen massive growth in recent years, with parcel delivery a crucial element in the process. 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.
Adam’s first lockers will be located in Sydney’s CBD and be operational next month.