SCG Logistics to expand ASEAN business and invest in IT to develop fully-integrated import-export solutions to help strengthen customers’ operation

Bangkok: 15 March 2016 – SCG Logistics, a leading fully-integrated logistics and transportation service provider in Thailand and beyond, has announced the strategy to facilitate the growth of businesses in the ASEAN region by investing more than 400 million baht in IT to develop cutting-edge logistics technology that focuses on integrated management solutions to serve the demands of customers in Thailand and abroad. The strategic investment is expected to increase its competitive advantage and grow its business by 18 percent. The company forecasts annual revenue of 17.8 billion Baht this year.

Mr. Syamrath Suthanukul, Managing Director, SCG Logistics Management Company Limited, under SCG Cement-Building Materials, said that the launch of theNext Day Nationwide service in 2015 served the demands of customers who required speedy nationwide delivery by eliminating the complexity of having to contact multiple service providers. The service is ideal for businesses that need to deliver a small amount of products but in a speedy manner, as the Next Day Nationwide solution gave them the ability to offer next-day delivery anywhere in Thailand. This helps customers reduce inventory costs and opportunity cost, and increases their overall competitive edge. This year SCG Logistics will continue to develop new business strategies focusing on regional logistics networks and elevating Thailand to become the logistics hub in the ASEAN region, since the ASEAN Economic Community has already come into effect. The company will continue to provide cross-region as well as domestic transportation services in order to help distribute products to regional destinations quickly. Improvements will be made to cross border transportation networks, with a particular focus on three border crossings, namely Aranyaprathet, Mae Sod and Mukdahan. SCG Logistics will also continue to establish and expand transportation networks in the GMS countries and Indonesia, while also setting up logistics companies in Myanmar, Laos, Cambodia and the south of China.

In addition, SCG Logistics offers added value to its customers, helping to enhance their competitiveness through the development of Thailand’s import-export solutions to be on par with international standards. These developments will maximize efficiency and minimize errors as well as risks associated with international trade. By earmarking more than 400 million baht for investments in technology, the company will utilize world-class technology from ORACLE to build a network system that links inter-country transportation data, with an audit program to ensure compliance with cross border trade laws and regulations. The document management system overhaul will rely on a system from OpenText to manage all documentation from generating purchase orders through the payment process.

The new technology will give customers the confidence that their products will reach the final destination in the pristine conditions, as well as an ability to check the status throughout the entire process and know the exact arrival time. This helps to reduce the complexity of having to deal with multiple parties and departments and increase the efficiency of the import-export processes. The One Stop Service greatly enhances convenience for customers, who can choose truck, plane or sea transports from the distribution center in Laem Chabang industrial estate. The service also helps customers contact the Customs Department and deal with the entire documentation process. The One Stop Service is one of SCG’s largest projects. SCG is Thailand’s first company that invests in IT infrastructure by partnering with more than 10 leading IT companies. The development of the service is due to be completed by the end of 2016 and operational by early 2017.

SCG Logistics believes that the strategy to develop integrated solutions and invest in cutting-edge technology will greatly increase its customers’ competitive edge and strengthen its capacity in line with the company plan. The company aims to achieve annual revenue of 17.8 billion baht this year, a growth of approximately 18 percent from 2015.

Compiled by BLOG.SCGLogistics

Reference Press Conference SCG Logistics, HQ Bangsue

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