DHL invests €50m in Thai supply chain operations

By Freddie Pierce
DHL Supply Chain has announced a €50 million investment in its Thailand operations. Over the next two and a half years, the company plans to buil...


DHL Supply Chain has announced a €50 million investment in its Thailand operations. Over the next two and a half years, the company plans to build new facilities, investing in new technology in addition to creating 2000 jobs.

In an online statement, DHL outlined plans for the investment, which will enable DHL to expand their fleet of trucks in Thailand in addition to its current automotive facilities in Rayong. In addition to this, DHL plans to intensify its training and development programmes as well as creating a new transport management system and opening new warehousing facilities.

Paul Graham, DHL Supply Chain CEO for Asia Pacific, said, "Thailand is one of the fastest growing markets for our business with our footprint growing 30 percent in the last year. We want to be ready to grow with our customers as they expand within the market."

"To achieve this, we are launching several projects in 2013, including an Automotive campus on the eastern seaboard to leverage our automotive operations, a new warehouse facility at Bangna to support our retail sector, an expansion of our truck fleet and a new transport management system to create greater efficiencies in our distribution capabilities. We will also create 2,000 new positions on top of our existing headcount of 9,500 to support these enhancements to our in-country network," added Oscar De Bok, CEO South and South East Asia.

New facilities in 2013

Next year DHL Supply Chain will also launch a new facility at Bangna to support its continual growth in the retail, fashion, and consumer sectors. The new facility consolidates the company's key strategic accounts, offering customers an optimized operating environment and greater efficiencies in the face of growing business demands. The facility will also be retrofitted with energy efficient specifications to achieve DHL's GoGreen aspirations, as well as stringent security features.

Mr. Burrell continued, "According to recent reports, The Thai Retailers Association (TRA) expects the retail industry to grow by 12 percent this year, the highest in three years and exceeding its earlier projection of 8 percent. We are also expecting healthy retail growth, and the new facility will help us innovate and develop better and more efficient supply chain processes. Our customer's pain points are our pain points. We constantly invest in new processes or technologies to help customers run their businesses more efficiently in an ever increasing competitive environment."

In showing its dedication to the country's retail sector growth, DHL Supply Chain will expand its transportation fleet. The fleet, which currently consists of over 1,000 vehicles, is capable of averaging more than 1,200 trips per day and covering over 11 million kilometers every month. Over the next few years, the company will continue to invest in its fleet and increase subcontractor partnerships to support growth in this dynamic sector.

Investments in this area also include the training of drivers. Before taking to the road, all new drivers undergo an intensive training program that covers classroom and yard exercises, simulation activities and on the road driving practice. These on-the-road skills are constantly refreshed. All drivers graduate from the DHL Supply Chain Thailand Transport Driver Training School located at a distribution center in Bang Yai.

People development

Apart from the investment into its business operations, DHL Supply Chain Thailand is fully committed to continuing its people development initiatives. Thailand has pioneered a School of Excellence where world-class employee training programs covering major areas of its operations (Note 5) are developed for the whole Asia Pacific business.

DHL Supply Chain will also invest further in creating value added supply chain services, specifically in the area of crisis management. Most recently, with experience gained from the floods in Thailand, and the Japan and New Zealand earthquakes, the School of Excellence has developed a program on ‘Business Continuity Management and Disaster Response’.

DHL Supply Chain first began operations in Thailand in 1995. Today, it has a market leading position in the retail and consumer sector and is growing fast in the life sciences, automotive and technology sectors.


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