The Nation
February 27, 2008
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.
The company has cross-border warehouses in Cambodia's Poipet and Nong Khai for easy and efficient management of routing between Thailand and its neighbouring countries. Shipments are carried by truck owners belonging to the group's transport network.
The integrated network will allow SCG Logistics to connect logistics networks and systems with SCG customers to save costs. For instance, SCG Cement's output will be delivered to various destinations, while kraft paper will be brought to paper mills on the return trip.
The integrated network will also connect SCG's customers and their customers. For instance, goods from paper and container mills will be delivered to plants producing packaged consumer goods.
This will help reduce the numbers of empty trucks on return trips and cut the overall cost of production.
"We can help our customers reduce costs by 4 to 5 per cent," Kajohndet said.
About 30 per cent of SCG Logistics' revenue comes from non-SCG customers and that share is expected to rise to 40 per cent, he said. The major non-SCG accounts are Red Bull, Dutch Mill and Mitr Phol Group.
SCG Logistics plans to open a Bt150-million bonded warehouse next to Laem Chabang Port in Chon Buri this year. The 20,000-square-metre facility will have a yard with a carrying capacity of 3,000 containers per month.
Sasithorn Ongdee
The Nation
February 27, 2008
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.
The company has cross-border warehouses in Cambodia's Poipet and Nong Khai for easy and efficient management of routing between Thailand and its neighbouring countries. Shipments are carried by truck owners belonging to the group's transport network.
The integrated network will allow SCG Logistics to connect logistics networks and systems with SCG customers to save costs. For instance, SCG Cement's output will be delivered to various destinations, while kraft paper will be brought to paper mills on the return trip.
The integrated network will also connect SCG's customers and their customers. For instance, goods from paper and container mills will be delivered to plants producing packaged consumer goods.
This will help reduce the numbers of empty trucks on return trips and cut the overall cost of production.
"We can help our customers reduce costs by 4 to 5 per cent," Kajohndet said.
About 30 per cent of SCG Logistics' revenue comes from non-SCG customers and that share is expected to rise to 40 per cent, he said. The major non-SCG accounts are Red Bull, Dutch Mill and Mitr Phol Group.
SCG Logistics plans to open a Bt150-million bonded warehouse next to Laem Chabang Port in Chon Buri this year. The 20,000-square-metre facility will have a yard with a carrying capacity of 3,000 containers per month.
Sasithorn Ongdee
The Nation
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