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SCG Logistics cuts revenue growth target 13 July 2015

3PL is investing in new distribution centre and IT infrastructure

SCG LOGISTICS, a subsidiary of Siam Cement Group, has lowered its revenue-growth target for this year from 12.0% to 5.0% because of declining oil prices. Meanwhile, it plans to establish logistics providers in Myanmar and Indonesia to support the cement business this year.

The Company reported that the significant drop of oil prices this year led to decreased revenues. This year's revenue target was previously set at about Bt17.3 billion, up 12.0% from 2014. Howeer, when oil prices decreased by about 6.0% early this year, the Company had to lower their shipping fees.

Meanwhile, the Company has opened the Wang Noi Ayutthaya Central Distribution Centre which aims to fully facilitate customer demands, offering a consolidated platform and providing one-stop services capable of next-day delivery.

In addition, the Company has invested more than 500 million baht in new technology which includes an upgrade of IT infrastructure and a more efficient inventory management system, in order to distribute goods more quickly and elevate the Thai logistics industry to be on par with international standards.

The new facility has a total service area of 18,000 m2 and is strategically located on the 53rd kilometre mark on the in-bound Phaholyothin Road, with connections to all the main thoroughfares. The Wang Noi CDC is equipped with state-of-the-art systems and facilities including an automated storage and retrieval system (AS-RS) and the latest version of SAP Extended Warehouse Management (SAP-EWM).

Working with its partners in different parts of the country, SCG Logistics has more than 7,000 trucks ready to deliver goods. Besides the new facility in Ayutthaya province, SCG Logistics has distribution centres in Chiang Mai and Khon Kaen, and owns more than 40 warehouses nationwide.