This year’s winners included one global player - SCG Logistics Management Co., Ltd. and two SMEs - HazChem Logistics Management Co., Ltd., and JWD InfoLogistics Co., Ltd.

This year’s contest was highly successful in terms of raising industrial sector awareness of various benefits to be derived from business process improvement and logistics/supply chain efficiency, said Mrs. Nantawan Sakuntanak, Director General of the Department of Export promotion.

Having garnered several awards in previous years, 2010 winners continued to strive for greater excellence with the aim of achieving world class standards.

Mr. Chalermsak Karnchanawarin

“Good enough is not acceptable. We need continuous improvement,” said Mr. Chalermsak Karnchanawarin, Managing Director of HazChem Logistics Management.

Value added derived from the Logistics Model Award 2010 and ELMA 2011 testifies to SCG Logistics Management’s sound development process as well as effective output. This star company is bound to gain customer confidence while employees will be motivated to increase productivity, Mr. Tawee Srichainak, Marketing & Logistics Planning Manager added.

Having been in business for over 15 years, the two-time Thai-based winner, JWD InfoLogistics, knows what it does well.

“We know our strengths & weaknesses. This contest not only provides an opportunity for third party assessment of our warehousing capability but also serves as a useful marketing tool.  Now we are concentrating our efforts on IT upgrading and HR development,” explained Mr. Nuttapume Pavaratn, Customer Service Manager, JWD InfoLogistics.

Regional competition

While the advent of the ASEAN Economic Community (AEC) will exacerbate market competition, Thailand can still compete with Malaysia and Singapore, particularly in the domestic market.  Several logistics companies are mulling their chances of expanding into the huge ASEAN market but many factors remain uncertain.

“While Thai entrepreneurs prefer to use Thai service providers, starting up overseas operations will be limited to major players that have regional networking capability or strong partnerships.  In the logistics filed, it is impossible to stand alone,” noted Mr. Chalermsak Karnchanawarin.

JWD InfoLogistics’s short term plan will focus on strengthening local advantages and Asset Base (some 100,000-sq.m. warehouse space at Laem Chabang and Bangkok Port) while diversifying business portfolio.

“The advent of AEC will drive every aspect of economic activity all over the region, including the manufacturing sector.  Logistics service providers will become the Marketing and Distribution Arm for transporting goods from one production base to another and to various points of sales,” said Mr. Nattapume.

Mr. Tawee Srichainak

Key to success

SCG Logistics Management Co., Ltd., the main winner at ELMA 2011, offers domestic and international Integrated Third Party Logistics (3PL) services, backed by state-of-the-art technology that includes TMS, RFID, GPS and a QC system.

“We meet customer needs by exporting cement to build dams in Laos while NGV vehicles that run between Bangkok and Nong Khai can save transportation costs by 5,000-7,000 baht per trip.  From Nong Khai onwards we use high-powered trucks.  We also plan routes for freight forwarders and retail SCG Logistics customers.  By 2016, we aim to become a leading 3PL with the largest local network that includes land and multimodal transportation.  Future expansion plan will focus on food and beverages and agricultural products while our customer base and transport networks will extend to GMS and Indonesia,” said Mr. Tawee Srichainak.

Apart from maintaining local and overseas leadership in the cement industry, SCG Logistics’ strategic plan aims to save cross border transportation costs by switching from NGV to petrol trucks and optimal utilization of its existing fleet.  Staff training programs are designed to achieve zero accidents and maximum safety.

SCG Logistics has also installed an Order Staging System (OSS) in conjunction with Transportation Management System (TMS), Logistics Network Database. Existing GPS Track & Trace System will soon be upgraded to cover both Thailand and Laos.

Hazchem Logistics Management Co., Ltd., a ‘Dangerous Goods Logistics Integrator’ and subsidiary of Triple Logistics Group, is a third-time winner of the ELMA award.

Mr. Chalermsak Karnchanawarin, Managing Director, attributes his company’s success to ‘Creative Competitiveness’ which, in turn, is driven by pro-active public sector motivation.  Star players need to implement continuous internal improvement before venturing into the global arena.

The criteria for ELMA 2011 award focus on excellent logistics management procedures as well as clear-cut business strategy.

Aside from targeting the Niche Chemical Market and Value Creation policy, the company focuses on developing an internal knowledge bank and sound business ethics so it can comply with domestic as well as internal laws.  Thanks to certified compliance with international health, safety and environmental standards as well as a strong commitment to Responsible Care policy, Hazchem is well positioned to provide One Stop Integrated Logistics Solutions to global and local chemical companies.

To show its commitment to Corporate Social Responsibility, Hazchem will build up a comprehensive database and transfer its specialized know-how to public and private sector organizations as well as educational and social development institutions.

Its existing IT system already includes a Freight Rate Center, Cyber Freight System, Warehouse Management System, Winspeed, data on chemical safety, shipping regulations and emergency measures.

Mr. Nuttapume Pavaratn

JWD InfoLogistics, backed by the motto “A Thailand Logistics Service Provider with International Standards” and with an ELMA 2011 award in the SME category,  JWD InfoLogistics Co., Ltd., offers Third Party Logistics, 24/7 monitoring of cargo movement, modern IT system, excellent warehouse management and distribution services.  Available facilities at Bangkok and Laem Chabang ports include General Warehouse, Dangerous Warehouse, Free Zone Warehouse administered on behalf of the Port Authority of Thailand.

Blending traditional standards with international ones, the company aims to become a leading comprehensive logistics service provider specializing in state-of-the-art warehousing facilities that are strategically located only 1.2km from Laem Chabang Port, said Mr. Nuttapume Pavaratn, Customer Service Manager.

In keeping with the national aspiration to develop a Southeast Asian Logistics Hub as well as current outsourcing trends, cargo distribution centers will be constructed to accommodate the growing logistics market, said Mr. Charvanin Bunditkitsada, Managing Director.

Existing IT systems include WMS, which enables efficient use of space and accurate supervision of cargo status prior to storage, plus various activities within the warehouse area.

In addition to GPS, the company has installed the Yard Management System (YMS), Transportation Management System (TMS) and DG-NET for transmitting export/import data, safe and eco-friendly procedures for storage and transportation of dangerous cargo.

What is an ELMA award?

The annual Logistics Model Award competition is a special project that has been organized by the Department of Export Promotion since 2007.  It is held in accordance with the national logistics development strategy and the Ministry of Commerce policy to upgrade logistics management capability in the production and export sectors, and to strengthen awareness of logistics and supply chain management efficiency among local logistics service providers and business enterprises.  This year the title ‘Logistics Model Award’ has been changed to ‘Export Logistics Model Award (ELMA)’ to reflect the concept and framework for assessment based on international standards, such as the Malcolm Baldrige National Quality Award (MBNQA) and Supply Chain Operation Reference (SCOR) model.  Upgraded logistics management standards will help to prepare local enterprises and exporters for imminent liberalization within the AEC framework.

The first category of the ELMA 2011 award went to producers or exporters while the second category comprises logistics service providers. Selection of winners is based on seven criteria: corporate vision and organizational leadership, logistics strategy, priority given to customer satisfaction and marketing, IT applications for logistics purposes, HR management, logistics procedures and impact of business enterprises.

Export Logistics Model Award 2011 presents a new option for organizational assessment based on international standards that cover every aspect of logistics and supply chain management, in line with the objective to lay a solid foundation that will lead to sustainable development and international recognition.