Kbank and SCG Logistics launch K-value Chain Solutions
According to President of SCG Distribution Mr. Kajohndet Sangsuban, logistics have always been a major component of the cost of products, and competitiveness can be improved through more efficient logistics management, especially given ever-rising fuel costs.
SCG sees logistics as a high growth potential business, and has set a target of 20 billion Baht in revenues by 2015. Smaller logistics companies in Thailand are more and more integrating their services, cooperating for development, and exchanging information in order to achieve business objectives.
According to Managing Director of SCG Logistics Management Co., Ltd, SCG Distribution Mr. Nithi Pattarchok , logistic costs in Thailand remain high relatively to more developed countries and seeking greater efficiency will cut costs for Thai businesses, increasing competitiveness internationally. SCG Logistics is thus working with KBank's K-Value Chain Solutions in seeking to enhance logistics services overall, both domestically and internationally, for the national network of logistic businesses. With the arrival of AEC in 2015, Thailand will become a geographic center for logistics among ASEAN, China and India.
In preparation for opportunities and challenges, the following strategies and objectives have been set to ensure service expansion and growth of the business.
Transport vehicles sufficient for customer needs will be available through KBank's leasing service, increasing the fleet by 1,000 vehicles. A procurement center for purchase of transport and logistics equipment will be set up, and multi-purpose transport vehicles developed for receiving goods from other countries. Personnel development for staff, logistics administrators and drivers, with training in logistics for the AEC. Financial knowledge will also be offered supporting sustainable growth.
According to Mr. Krisada, KBank is the first bank in Thailand to offer a service like K-Value Chain Solutions aiming to fully satisfy the needs of large corporations with long and complicated value chains.
Such corporations represent combined business value of more than 13 trillion Baht and participate in seven industries: petroleum and petrochemical, retail- wholesale, construction materials, transportation, food and beverage, automotive, and hospitals and medical equipment. KBank is a major provider throughout the value chain and is targeting an increased market share of 30%, up from the current 20%, by 2016.