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SCG Moves Forward with Revamped Logistics Services by Integrating Digital

Date : 9 February 2018


SCG announced strategic business direction on logistics service gearing towards total solutions and maximizing success to customers of all segments with efficient logistics network comprising warehouse management and a comprehensive fleet of vehicles and ships all across ASEAN on top of end-to-end support services. The service’s application allows customers to gain access to real-time 24 hours visibility of shipments that ensure delivery speed, accuracy and safety. A record of 3.6 million tons of goods or 1.7 million shipments a year is a guarantee for huge upside potential. The company aims for 17 billion Baht revenue target or rising 10% from the prior year. Meanwhile, SCG Express, SCG’s small parcel delivery, received excellent feedback from customers with an outstanding quadrupled delivery volume since its launch. SCG plans to introduce new service solutions to attract new segments of customers such as golf bag delivery and provide full service coverage nationwide by mid-year.

Mr. Nithi Patarachoke, Vice President of Building Products & Distribution Business SCG Cement-Building Materials revealed "Throughout 2017, SCG stepped up its logistics services to meet market and consumer demands as well as unleashing its full potential towards corporate clients in 8 industries both in Thailand and in ASEAN. As our delivery service put a core focus on speed, accuracy and safety, SCG Logistics earned revenue of 16 billion Baht -- a growth of 7% compared to 2016 contributed by 1.7 million shipments a year with 3.6 million tons of goods delivered.

In 2018, SCG is consistently converging on developing high value-added products and services by optimizing logistics operations to deliver increased capabilities and competitiveness to customers of all sizes. The implementation of cutting-edge digital technologies of an app-enabled platform "Logistic Command Center" connects corporate clients and SME entrepreneurs to real-time data access with of track and trace system through each process with a 24/7 service team to assist clients from start to the end. The seamless logistics operation gives customers confidence that their shipments will be handled with speed, precision, and utmost security as well as minimizing the risk of shipping damage. Furthermore, it also offers a full range of logistics services for import and export ranging from custom and formality services, booking services to logistics solutions to ensure entire process’s coherent function.

"SCG is taking a step toward seeking collaborations with digital startups to enhance services and fulfill the needs of entrepreneurs. With over 7,000 digitally connected delivery trucks nationwide, clients can enjoy a more consistent traceable logistic service which is faster and better. Such solution is a perfect fit to serve business expansion and increasing needs of logistics service all across ASEAN, while Headhaul - Backhaul Management and Multimodal transport provide cost-effective advantages. The SCG's streamlined logistics process provides efficient and valuable management of budget and deliveries to support all demands in clients' businesses," said Mr. Nithi.

For small parcel delivery service or SCG Express, a joint venture between SCG and Yamato Asia Pte. Ltd. called “Black Cat”, Mr. Nithi added: "Since an official launch of SCG Express, we received positive feedback and trust from our customers. On top of our high service standards that offer convenience, quickness and end-to-end support services with care, we are the first and only in the market that provides temperature-controlled delivery service "Cool TA-Q-BIN." We have expanded service coverage to other provinces in which resulting in a quadrupled service volume compared to early 2017. SCG Express has built up 500 service points and plans to cover nationwide within mid-2018 to sustain growing e-commerce businesses. Plus, it plans to introduce new service solutions for specific customer segments, i.e. luggage or sports bags delivery service that require handling with care coupled with "Farm to Table" delivery service that serves organic agricultural products from farm to customer's dining tables across different areas.

In addition, SCG also pushes key strategies to promote standards and sustainability in logistics businesses by training and developing staff's capabilities which are nationally and regionally accepted through Skills Development School. We upskill drivers and offer courses for good manner training to achieve high quality and safety services. The school has been established for 12 years with over 143,000 trained staff who are both employees and those outside the organization.

"SCG believes that logistics business exhibits a huge and consistent growth potential. Our core strategies will deliver full total solutions that drive competitiveness of our corporate clients at all levels and enhance SME business capabilities which SCG sets to meet growth expectation. We aim for 17 billion Baht revenue target or 10% growth from the previous year," concluded Mr. Nithi.