(MENAFN- ProactiveInvestors - Australia) TZ Limited (ASX: TZL) has signed agreements for its Automated Delivery Asset Manager (A.D.A.M.) locker site systems with a major petrol station franchisee in Victoria and also Australia's largest independent and fully integrated oil company.
The company has a target of taking a significant share of the available parcel locker market by the end of the year.
This would provide an alternative for consumers in parcel pick up including online purchases and returns.
Securing sites or distribution is fast becoming the single most important element for expansion and market share for TZ.
Judging by today's teaming agreements, TZ is taking strong strides, with teaming agreements having been signed with AA Holdings Pty Limited, owner and operator of over 50 BP petrol stations in Victoria.
In addition, it has signed an agreement with Australian Fuel Distributors Pty Limited (AusFuel) who have over 80 Gull petrol stations across Western Australia, South Australia, Queensland and the Northern Territory.
Collectively, the deals potentially provide TZ with access to over 130 petrol station and convenience store sites across Australia.
Site owner preference
Research has uncovered that that most site owners not only want foot traffic generated by the A.D.A.M. locker system, but are "agnostic" as to who delivers to them.
Agreement terms
The teaming agreements have a term of 12 months and provide an exclusive right for TZ to negotiate for the supply of parcel lockers in that period.
The agreement sets out a framework to enable the parties to establish an initial trial program in order to fully evaluate the opportunity of deploying and implementing the A.D.A.M. locker system.
Subject to the success of the program and mutual satisfaction, the parties then agree to negotiate in good faith an agreement for an ongoing relationship.
Under the teaming agreement, the number of sites and the size and configuration of the A.D.A.M. locker systems to be implemented as part of the trial program is to be agreed by the parties.
Key enabler and market differentiator - parcel lockers
To gain market share, the key enabler for the A.D.A.M. locker system is the speed in which TZ can secure accessible sites for consumers.
For consumers it is about convenience and flexibility in their parcel collection options.
Today's agreements represent a major initiative and win by TZ in securing access to prime locations and locking in property partners who see the A.D.A.M. locker system as a complete end-to-end offering that caters for the need of on-line retailers (collection point and goods return options), couriers (failed deliveries), digital media providers (locker advertising and POS promotion) and consumers (open network).
Deployment
By way of update, the initial A.D.A.M. locker system deployment is scheduled for the beginning of May 2013.
This has been pushed back from the previously scheduled April deployment in line with agreed deployment and installation timeframes.
From May, there will be a total of six initial high traffic and high visibility sites located in Sydney (2 sites), Melbourne (2 sites), Brisbane (1 site) and Perth (1 site).
The six site locations are still being finalised.
Together with GPT Group's (ASX:GPT) mix of corporate, retail and business park sites, the arrangement with AA Holdings and Australian Fuel Distributors, and other pending property deals, TZ has invested over the past 12 months to develop an excellent hardware and software platform to launch and scale the A.D.A.M. locker system to support achievement of its objective.
Analysis
In October 2012, Proactive Investors opined, TZ "is one to watch." The share price has risen 45% since that date.
As suggested then, "TZ has first mover advantage in its budding integrated secure parcel locker business. It is rapidly growing distribution and "footprint" - vital elements in this business. An advantage is that it is carrier - agnostic - enabling more options for shoppers to pick up online purchases. However, there is more to TZL than the online shopping parcel collection business."
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