While both domestic and international logistics businesses are rapidly growing today, each player in this market is asking the question of how they should adapt in order to generate the highest value to their customers, their employees, and their organization to sustainably grow their business.
SCG Logistics, under SCG’s Cement-Building Materials Business, has been in operation for over 20 years and understands the importance of this issue. Thus, the company has been accelerating changes in many aspects especially by adopting digital technology which will help enhance the efficiency of business operations, add value for customers, and enhance the company’s competitive advantage.
Embarking on a New Journey to Adapt to Business in the New Era
“Mr. Paitoon Jiranantarat”, Managing Director of SCG Logistics Management, a subsidiary of SCG’s Cement-Building Materials Business, said that new businesses are emerging quickly while businesses that do not adapt to the ever-evolving market are at risk of being disrupted. Therefore, digital technology is a great alternative for businesses that are looking to enhance the efficiency of their work process and satisfy their customers. However, not all technologies can be adapted to business operations and thus companies should select wisely which technology to implement.
For SCG Logistics, the company formerly required a large number of employees to communicate with customers, find product information, and fix issues for customers. Each task would take a lot of time with a high risk of data errors. Moreover, it was difficult to collect information in a central database. Therefore, the company has been adopting technology to address each problem.
One of the technologies that SCG Logistics adopted was the chatbot or an automated chat program called “Tuck Kung”. Traditionally, customers would need to make a telephone call to the company’s call center in order to track the status of their delivery of when it will be delivered and where the delivery was at the moment, however, with the chatbot, customers can use the LINE application to ask questions and immediately get answers from the company with the use of artificial intelligence (AI) technology. Moreover, “Tuck Kung” is constantly getting smarter with machine learning technology that allows the program to learn about the needs of customers in order to present the right products to customers in the future.
The company has also adopted the robotic process automation (RPA) technology which uses robots in combination with computer programs so that robots can perform tasks related to data collection or data input with accuracy around the clock. With this initiative, one RPA can perform the work of three employees, allowing higher efficiency and better cost control for the company.
SCG Logistics has also implemented machine learning and AI technology to monitor the safety of its drivers at the Logistics Command Center (LCC) where the GPS of over 10,000 delivery vehicles are tracked whether they are heading towards the right destination and driving at a speed of no more than 70 kilometers per hour in line with company regulations. If any vehicle moves faster than the limit, the system will instantly warn drivers to slow down through a speaker in the vehicle. Meanwhile, if vehicles are suddenly parked for a long period of time which could lead to accidents, the system will alert employees at the LCC to make inquiries to the driver and provide help if needed.
More Convenience, More Business Opportunities
“Mr. Paitoon” added that digital technology should not be seen only as a “shortcut” that can help add convenience to the company, rather, digital technology should be viewed as a “window” that can create new opportunities for the company in the future. For example, big data or information that has been systematically collected within the LCC will allow the company to track the movement of delivery vehicles and gather data on routes and risks of accidents that could be useful for analysis, projections for future events, and planning for accident prevention.
Developing Employees’ Capabilities to Effectively Adopt Technology
However, a key issue that many organizations face while implementing digital technology is addressing the concern of employees who fear they will lose their jobs. For this issue, “Mr. Paitoon” assured that the first thing that the company does in any case of new changes is to communicate with employees about the benefits of new technologies and how it can help with their work process. Though some employees may no longer perform the same tasks, the company has arranged training programs to help them gain new skills necessary for new positions that will also help drive the organization forward.
The Future of Digitally-Driven Logistics
All of the above initiatives are how SCG Logistics is driving its business operations during a time of learning and development that will see digital technology being fully adopted in order to provide quality services and create the highest satisfaction for customers and employees.
“Although this journey is very challenging, with the determination and cooperation of all SCG Logistics employees, I believe that we can fully implement these new technologies to become more professional and better cater to the needs of our customers,” concluded Mr. Paitoon.
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