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TZ Limited wins East Tennessee State University smart locker contract

Published: 09:58 06 Aug 2013 AEST

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TZ Limited (ASX: TZL) has named the East Tennessee State University (ETSU) as one of two U.S. colleges that it has recently won tenders for the provision of intelligent lockers.

This could be the start of additional U.S. state university contracts which would add further revenue enhancement to TZ.
       
Dan Flack, general manager of TZ’s US PAD Solutions business said the wins signal that TZ is well placed to participate in the highly contested University Locker space.

“It is a significant achievement when you consider we’re up against stiff competition from European locker manufacturers who have distribution through large U.S. multinationals,” Flack added.

“These wins provide track record and credibility and should allow us to increase our penetration in the potentially very large and attractive colleges and university market in the U.S.”

The Intelligent Lockers at ETSU will be deployed at their main campus in Johnson City, Tennessee and will allow ETSU students to pick up parcels up to 20 hours a day from 6am to 2am.

Currently students are only able to pick up parcels from 8:25am to 3:25pm from defined collection points which mean a significant improvement in student convenience and flexibility.

“After evaluating several Intelligent Locker suppliers, TZ was selected because their solution best met our requirements and they listened to our needs,” ETSU postal services manager Don McCarty said.

“The TZ solution offered the most flexibility in terms of configuration in locker sizes, colours and the range of finishes. The TZ Lockers are also being manufactured in the USA and can be delivered within our desired time frame of 4 to 6 weeks which no other provider could achieve.

“The modularity of the TZ solution also allows us to expand our locker configurations by adding additional parcel lockers as needed without having to buy a whole new system. TZ also provided ETSU with a great software maintenance plan that will help make long term support affordable for the University.”

East Tennessee State University is one of the top schools in the USA for rural medicine and primary care education.

With the deployment of TZ Intelligent Lockers, ETSU is looking to streamline current package delivery processes while providing close to 24/7 convenience for students to pick up their packages.

Confidentiality undertakings prevent the company from disclosing details of the tender win of the other College, including naming the college at this point in time.

U.S. Package Asset Delivery

TZ Limited’s Package Asset Delivery business in the U.S. corporate sector has enjoyed higher sales through multi-year, multi-unit supply contracts with established repeat purchase customers as they expand their locker bank network.

Growth Foundations have also been laid with the successful completion of a number of initial pilot deployments with major Fortune 100 customers in the Financial Services and Technology sectors.

These customers are now planning progressive locker bank roll-outs to their corporate buildings, which should see sales to the corporate sector at least doubling again this new fiscal year.

Its Certified Integrator Program has also delivered positive results with its CIP channel delivering a number of additional PAD deployments in the residential space, another growth market for TZI.

Analysis

TZ’s win in East Tennessee State University and the unnamed College – due to confidentiality undertakings – highlights the company’s ability to effectively compete and win tenders ahead of European locker manufacturers.

It also positions the company to win future tenders in the college and university sector which has the potential to "snowball" with further contract wins and new revenues.

While we hadn't factored in contract wins from U.S. state universities, this adds a further important source of revenue growth to TZ for smart lockers.

 

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