SCG Logistics Management plans to spend more than Bt200 million on solution systems this year to integrate its transport network and increase its presence in Asean.
After entering Cambodia seven years ago, SCG Distribution plans to expand into Vietnam and Indonesia as part of the "Go Regional" policy of the country’s largest industrial conglomerate, Siam Cement Group
In Cambodia, the multimodal system was applied to support SCG Cement’s plant in Kampot province. The logistics network in Vietnam was developed to support both SCG and non-SCG customers.
SCG Logistics Management re-cently changed its name from Cementhai Logistics to be in line with the rest of the group.
The overall logistics cost of Bt1.6 trillion in Thailand is about 20 per cent of the country’s GDP. About 30 per cent of the cost is for transport and the rest for inventory and warehousing.
Now that transport costs are on the rise due mainly to surging oil prices, cost management is imperative, Kajohndet Sangsuban, president of SCG Distribution, said yesterday.
The situation last year was that the logistics market remained steady while global oil prices continued to go up despite the sluggish local economy, he said.
SCG Logistics has responded by developing a strategy to increase the efficiency of logistics management by integrating logistics networks to support SCG’s businesses and other customers in Asean.
"We believe that cutting-edge network technology, efficient system management and the infrastructure network in Asean will help boost our revenue by 20 per cent to more than Bt10 billion this year," Kajohndet said. About 15 per cent of revenue will come from sales of logistics services in Asean, he said.