Thailand Post Distribution Reaches New Heights by Continuously Improving Their Services
The Thai Post has been serving the people of Thailand with a wide range of postage services for over 132 years. While new media and technology has pushed physical mail service to becoming less and less popular, courier services have however experienced a spike in volume thanks in part to growth of SMEs and e-commerce businesses. To handle the increase in demand, the Thai Post are developing new service specifically with e-commerce in mind.
Within the courier services, an Express Mail Service (EMS) was added to their portfolio of options. However, there is still a weight limit for an EMS parcel of 20 kilograms. As a solution, Thai Post developed a new service named Logis Post which accepts a wide range of parcel weights ranging from 20 kilograms up to 200 kilograms which is mailed post-to-post between post offices. The service was very well received, and Thai Post had decided to establish the new division dedicated for a broader spectrum of service and furthering its distribution coverage with Thai Post Distribution.
In this issue of AFL, we had a chance to speak with Mr. Warakan Srinualnad, Thai Post Distribution’s Chief Executive Officer, who told us about Thai Post Distribution’s service developments to meet growing logistics demands.
The economic growth and the expansion of the e-commerce sector has driven trade across the board. Thai Post has established Thai Post Distribution to facilitate its full-circuit service development. “Our organization functions to distribute goods under the government’s Digital Economy policies to push Thailand’s economies forward with technological advancement,” said Mr. Warakan.
The target groups of the Thai Post Distribution include such industries as e-Commerce, pharmaceutical, communication technology, electronics, appliances, and mail-order. Today, the company has a 20,000 square meters warehousing area located in Samut Prakarn. The warehouse is equipped with a cold storage facility, and is managed by the Warehouse Management System to control storage, container reception, warehousing, and distribution. Furthermore, the company also offers stuffing services for country-wide distribution.
“We offer charter logistics services, for example, delivering 120 units of hemodialysis solution to over 1,700 patients all over the country so that they don’t have to travel to a hospital. In addition, we manage to make sure that each transportation is fully booked in every single round in order to help cover revenue of the organization, and lower the cost of Thai Post overall” said, Mr. Warakan.
As a part of the Thai Post network, Thai Post Distribution has restrictions that prevents it from involving itself in its parent company’s business. For example, if an e-Commerce client wants to ship a piece of small cargo, but does not want to ship through Thai Post, it can turn to Thai Post Distribution service. Thai Post Distribution serves as an alternative for e-Commerce businesses to choose.
Bringing Technology into the Mix
Due to the popularity of e-Commerce business, Thai Post has been gaining more clients who want to take advantages of Thai Post’s ability to access every area of Thailand. With this particular advantage in mind, Thai Post Distribution has used innovations to elevate the standard of its shipping service. Mr. Warakan explained, “We facilitate Transport Management Systems to manage every stage of operations. It starts at the beginning where we receive cargo from a client, and goes on till the cargo is delivered at its destination. At all stages, we are able to track progress and send out reports.”
“Although our current warehousing system doesn’t operate in real-time yet, status checking is done at every touchpoint. At each touchpoint, a team member will check the barcode, take a picture, and locate the cargo in order to keep the cargo status updated.”
Thai Post Distribution’s purpose in adopting IT Logistics innovation is to gain trust from its clients, and reassure that all cargo is handled safely. Furthermore, a GPS tracking system is implemented so that clients are able to check on the cargo status in real-time, including a video streaming system to guarantee that all procedures are carried out with the best practices.
One of our policies is to putting existing innovation to best use. This is to make logistics services easier for everyone
“Therefore, we have planned out the application of technology to our business expansion in the near future in an effort to extend our service capabilities and efficiency.”
A Plan for the Future
With over 130 years of experience in serving Thai people, Thai Post’s Thai Post Distribution has set a goal to develop the standard of service and a management system for the betterment of world-wide logistics and distribution efficiencies. This is a stepping stone for Thai Post Distribution to become an international key logistics provider.
“Thai Post Distribution has a plan to expand its service into cross-border logistics by 2019. This year, we are focusing on developing our internal management system first. With two years of operation under our belt, we’ve discovered and are correcting mistakes and difficulties we’ve come across. This is why we want to improve, so that we can offer a better and more customer-orientated service,” said Mr. Warakan.
Thai Post Distribution now has 9 distribution centers located all over of Thailand. Each center functions to distribute cargo to 5-10 neighboring provinces as proposed in the organization’s policies to cover every house in every area.
One strength of Thai Post Distribution is its extensive network that allows for a nation-wide coverage and competitive pricing. The organization is also publicly owned, which makes it and its parent company a popular choice of Thai people. Regardless, the quality service and reliable reputation are still the attractive factors that leads customers to choosing the Thai Post. The perpetual development of Thai Post Distribution will continue to grow client’s trust and elevate Thailand’s logistics industry to international acceptance.