OR and SJWD cooperate to advance ‘Green Logistics Solution’ To promote environmentally friendly transportation Introducing innovative cold chain transport through largest transport network Fulfilling needs for temperature-controlled goods transportation While fostering differentiated, sustainable growth
SCG JWD Logistics Public Company Limited (SJWD) has developed the “Green Logistics Solution” to help eradicate the pain points for food and bakery business operators that in the past have posed limitations on the shipping of products throughout the country. Most recently, the Company is providing proactive service to PTTOR’s Café Amazon brand that needed to expand bakery delivery perimeter from the company’s factory to Café Amazon branches in the Central zone as well as other regions throughout the country. The total value of the first phase of this commitment is worth approximately 50 million baht. The project makes use of “Cool Containers” to hold the products in controlled-temperature environment and transporting them on regular transport vehicles. Thus, the entire fleet numbering more than 12,000 transport vehicles – the largest fleet in the country – can be mobilized across the nation, instead of having to use a significant number of refrigerated vehicles. This strategy is intended to reduce costs and cut down on carbon dioxide emissions.
Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, revealed that, the Company recognizes the pain points of customers who are entrepreneurs in the food and bakery businesses, as there are problems involving the delivery of such products to distribution points or to the numerous branches spread across many provinces throughout the country. These problems are mainly due to limitations in relation to distance and the management of the transportation cost that focused on utilizing refrigerated transport vehicles throughout the entire route network which can be quite expensive.
Therefore, the Company has developed a new service in the form of “Green Logistics Solution” to fulfill the needs of commercial customers who need to transport temperature-controlled goods such as packaged fresh food, bakery items, etc., to branch stores or points of sale spread out in many provinces throughout the country, without having to rely on a large fleet of refrigerated trucks. This business model can help customers cover more long-distance delivery areas while keeping the products fresh all the way to their destinations, reducing shipping costs, cutting down on carbon dioxide emissions, while also being able to increase the frequency of product deliveries per week.
Mr. Udorn Kongkakate, Senior Vice President B2B2C, SCGJWD Logistics Public Company Limited, said the Company has recently entered into an agreement with PTT Oil And Retail Business Public Company Limited (OR) to develop the “Green Logistics Solution” that is best suited for OR to meet the need to expand the delivery areas for bakery products from the company’s production facilities in Ayutthaya Province to Cafe Amazon branches that are located within PTT gasoline stations, inside shopping malls, or standalone stores in the Northern, Northeastern and Southern regions, as against previously when deliveries could be done only to stores in Bangkok and the Central region. The value of the first phase of this project to support OR is approximately 50 million baht.
The Company has developed a bakery product delivery service for OR by leveraging SCGJWD’s vast logistics infrastructure, which has a transportation network spread across all regions of the country, with a fleet of a variety of types of transportation vehicles, both normal and temperature-controlled trucks totaling more than 12,000 vehicles. Also, available to business partners is the “Transportation Management System (TMS)” that is useful in managing transport trips, choosing the shortest delivery routes, planning and sequencing delivery stops for maximum efficiency, as well as to select and allocate transport vehicles and calculate the most cost-effective overhead.
This type of service is considered to be a logistical “process innovation”, as the Company is utilizing the “Cool Containers” to hold the bakery products and deliver them using regular transport vehicles instead of refrigerated trucks. The “Cool Containers” can maintain the temperature of the products at 0-8 degrees Celsius or -15 degrees Celsius for as long as 12 hours to ensure the quality and freshness of the products as they are being delivered to destinations in various provinces across the country at a cost that is lower than using refrigerated trucks. Currently, the Company is providing bakery product deliveries to approximately 500 Café Amazon branches per day.
In addition, the Company is in the planning process to increase the potential of providing “Green Logistics Solution” services to OR by taking delivery of products from production facilities in Ayutthaya Province, to improve convenience for factories and stores by offering a one-stop service through the use of the Central Distribution Center (CDC) in Wang Noi District to sort the products before transporting and distributing them to Café Amazon branches in various areas throughout the country.