One of Thailand’s top-four wholesale traders of software, connectors and automated office equipment, SiS Distribution (Thailand) Co., Ltd., has relocated its warehouse for the second time to Rom Klao district while at the same time shifting from horizontal to vertical racking system.

Founded in 1998 and listed on the stock exchange in 2004, SiS represents over 70 leading IT brands.

Initially housed in Penchart Building on Rama 9, the company made use of the 2,000 sq.m. ground floor area to operate a horizontal warehouse system. Sales volume has increased by 20% over the past 3-4 years; due to this large trucks could not enter the existing facility so SiS moved to a four-storey 4,000-sq.m. building in Rama 9 Soi 13, explained Mr. Somchai Sittichaisrichart, Managing Director, who led Logistics Digest team on a tour of the new warehousing facility.

Right place, right price

Rapid growth in urban areas soon took its toll on SiS’s Rama 9 warehouse, so the company began to search for another location that would meet its growth targets.

“We looked for a location measuring at least 10,000 sq.m., along with potential for future expansion. Another pre-requisite was freedom from urban traffic congestion,” said Mr. Somchai.

The company finally settled on Rom Klao district, which lies outside the Ring Road and has easy access to Suvarnabhumi Airport and Laem Chabang. The first phase of the new warehouse, covering 5,000 sq.m., is now in full gear while the second phase will be completed by January 1, 2012.

Vertical racking

SiS selected SSI Schaefer to design and install the vertical racking system because both parties share the same management philosophy. SiS not only sells computer equipment but also offers excellent technical advice and after-sales service that suits specific customer needs and ensures adequate safety measures.

Based on analysis of actual space utilization, SSI Schaeffer calculated appropriate proportion of high and low shelves and then presented a rational Lay out plan that differed from SiS’s original ideas, but the outcome was satisfactory for both partners, said Mr. Somchai.

Nonetheless, switching to a vertical racking system required changes in work methods as well as procedures. SiS staffs were re-trained to drive forklifts, stack goods in high Racks, and to store/retrieve goods at the exact spot designated by SAP program.

Future investment trend

Currently using SAP and 2D Barcode inventory management systems, SiS plans to upgrade into a one-stop work station by developing supplementary programs that will be applied by the staff using handheld computers. When minimum daily orders exceed 5,000, SiS will go fully automated, backed by a rail system.

“Future investments will be consistent with workload. Having invested 30mn baht to implement the first phase of the Rom Klao warehouse project, SiS will continue to explore and procure new equipments that will maximize our service efficiency. Development efforts are never ending,” Mr. Somchai said.

SSI Schaefer Thailand Case Study