Digitalization is now disrupting traditional businesses and leading to the introduction of new business models. Meanwhile, companies that are not ready to adapt to this new wave of changes are at risk of being abandoned by consumers who are constantly looking for new products. At the same time, the logistics business is another sector that is at risk of being disrupted and replaced with new technologies that will greatly transform the way logistics operations are carried out compared to the past. Moreover, there are numerous new service providers who are ready to compete with existing providers in the market.
SCG Logistics has been in operation since 1997 and has shifted from its position as SCG’s logistics unit to serving customers in a Business to Business or B2B manner and also a Business to Consumer or B2C manner, transforming its business model to offer a wide range of services in order to cater to the needs of the modern customer, choosing to change its model and disrupt its own business to create new chances instead of letting the company face a crisis.
Mr. Paitoon Jiranantarat, Managing Director of SCG Logistics Management, disclosed that the logistics business today is undergoing rapid expansion. In the past, the logistics sector would experience a growth rate in line with the economy or the gross domestic product (GDP), however, today the growth rate has exceeded the national GDP due to market expansion as well as new business models developed by the company that has allowed SCG logistics to expand quickly along with the market.
“The logistics business has a chance of being disrupted. Thus, SCG Logistics had to change for a chance to create new businesses because we believe that there is always an opportunity in every crisis. Therefore, we now offer both total logistics solutions for B2B and B2C customers.”
The leader of SCG Logistics added that the biggest factor that has driven the change in the organization is the mindset that digital technology can enhance the efficiency of business operations while ensuring accuracy and eliminating errors. At the same time, the company has been promoting the process of upskilling and reskilling employees and encouraging its employees to adapt themselves to their shifting roles once technology takes on a bigger part in their job scope through a special 70-20-10 training course which means that 70% of the training is on-the-job, 20% is through mentoring, and 10% is through theoretical study.
“By utilizing technology for our employees, SCG has been able to develop and enhance its employees’ skill set by increasing and shifting their job scope. For example, we have trained our employees in sales to add the number of sales to the company, however, we must admit that sales is not for everyone. Therefore, we also have to train our employees to gain control of technology in ways other than just inputting data.”
At the same time, the company has been introducing a variety of services, such as offering logistics services for B2B customers in partnership with “PSA International”, one of the world’s largest port operators based in Singapore, to import and export goods as well as manage warehouses. This project has also allowed SCG to work closely with customers by acknowledging their pain points and offering total solutions to cater to their business needs.
Meanwhile, SCG’s B2C service which aims to provide logistics solutions for small businesses with small products have been growing rapidly in line with the growth in the e-commerce sector, a sector with intense competition or a red ocean with both new and existing players as well as future players, thus, SCG has to adapt the prepare for the competition in this market.
Therefore, SCG Logistics has introduced a B2C logistics service under the name of “SCG Express” together with parcel delivery business expert “Yamato Asia” from Japan to offer express delivery services for parcels in the country with the objective to deliver goods to customers quickly in a timely manner.
SCG Express is a new service offered by SCG Logistics that has been in the market only for the past 3-4 years but has seen rapid growth in revenue from 40 million baht in its first year to 600 million baht in 2019 due to its success in connecting between online merchants comprising of small- and medium-sized enterprises (SMEs) who are growing with end consumers. Therefore, SCG Express has survived amidst intense competition in the market.
Moreover, SCG Logistics has partnered with rising Thai startup “MyCloud Fulfillment” to offer fulfillment services from storing, packing, to delivering products as well as analyzing customer data for online sellers. This initiative is a jump from the red ocean to blue ocean that will help drive growth in the sector while supporting this Thai startup on its path towards becoming the nation’s first unicorn to achieve 1 billion USD valuation for its business.
“Our customers who are online sellers are skilled in producing goods and marketing, however, they often find routine tasks such as storing goods, accounting for stock, and logistics to be difficult. Thus, SCG is offering them total services from storing, packing, delivering, to analyzing their customer data so that the business and our customers can grow hand in hand.”
For those interested in SCH Logistics’ services, please contact 02–586–6777 or visit www.scglogistics.co.th / Facebook: scglogistics / Line: @SCGLFULFILLMENT. For other SCG news, please visit https://scgnewschannel.com / Facebook: scgnewschannel / Twitter: @scgnewschannel and Line@: @scgnewschannel
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