Pattaya Mail Business News

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Free online enquiry service - eGuide helps out local business

Schenker Thai’s first phase under construction at Laem Chabang

A report on UK / Thai Trade

Trade and Investment

Trade between Thailand and the UK continues to hold up well. Thai exports to the UK amounted to ฃ550 million in the four months January to April (up 17% on the same period last year). British exports to Thailand were worth ฃ204 million in the same period, slightly up on last year.

UK investment projects approved by the Board of Investment were worth Baht 993 million in the first four months of the year, 5% down on the same period last year.

Ministerial Changes in the UK

Following the recent election in the UK, the Rt. Hon Baroness Symons of Vernham Dean has been appointed as Minister of State for International Trade and Investment. She will chair the board of British Trade International, which comprises mainly of businessmen. She will report to the Secretaries of State for Foreign and Commonwealth Affairs (Jack Straw) and Trade and Industry (Patricia Hewitt).

Thai Businessmen’s attitudes towards the UK

The Thai Farmers Bank Research Institute recently surveyed 188 Thai businessmen on their opinions with regard to business relations with the UK. The businessmen voted the UK as Thailand’s most important business partner within the European Union.

Key factors included:

* UK is Thailand’s largest export market in Europe (worth US$2387 million in 2000)

* UK accounted for the most tourists visiting Thailand from Europe

* UK is the third largest EU investor in Thailand after Germany and the Netherlands

The businessmen rated the UK highly in the areas of finance, high tech industries and as an education provider.

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Free online enquiry service - eGuide helps out local business

eGuideThailand.com, Thailand’s intelligent search directory, recently launched free online enquiry service on the website. The new service helps generate business leads to local companies and increase awareness. eGuide’s enquiry service greatly enhances the competitive advantage of the 150,000 local business opportunities.

The much welcomed service serves not only internet savvy companies but also the more than 50% of local business in Thailand which currently do not have Internet access. With users aggregated from all over the world to zoom in on business featured on eGuide Thailand, surely local entities will have plenty to gain from this service. The “enquiry form” is featured at every business listed on eGuide Thailand. Once buyers fill out their requirement and their contact information, eGuide Thailand will automatically send the message to the prospective seller either by email, fax, or phone. The best news is that the service is provided at no cost for buyers and sellers.

Joseph Lim, CEO of eGuide Thailand said, “One of our priorities for having a presence in Thailand is to maximize business opportunities for the 150,000 local business listed on eGuide Thailand. The online enquiry service effectively creates leads from buyers all over the world. This will help positioned local business to move up front where many of today’s business deals are conducted. Whether the deal is won or lost, you have to be there in the first place to complete. This is where many local companies (who have not kept abreast with technology) have lost out... simply because they have not made their presence at all. We see win-win here, buyers are facilitated to have an easier & cheaper way to source for products plus having more options before making a deal, while sellers will receive more enquires and business opportunities to sell their products. During the 3-month testing period which began in March, we received 300 enquires per day from interested buyers from all over the world. We expect the figure to rise to 1,500 enquires per day by the end of this year.”

The enquiry service is now available online free of charge. eGuide Thailand is planning to introduce more online services in the near future to assist local business in as many ways as possible.

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Schenker Thai’s first phase under construction at Laem Chabang

The first phase of Schenker Thai’s logistics facility near Laem Chabang is currently under construction and scheduled for completion in August 2001. The total land area is approx. 31,200 sqm and the first phase of the facility will measure 6000 sqm including approx. 300 sqm office space.

Schenker Thai has the option to expand this logistics facility on short notice - depending on customer demands - to approx. 10,000 sqm in the 2nd phase and 14,400 sqm in the 3rd phase.

The launch customer is Johnson Controls & Summit Interior Ltd., a joint venture between Johnson Controls USA and the Summit group of Thailand who have awarded Schenker Thai a contract to operate and manage all shipping, clearance, storage and line-delivery services for their components from Europe up to their car seat factory in the Eastern Seaboard Industrial Estate Rayong, and from there to the factory of their customer General Motors Thailand.

Schenker Thai is running this logistics program on 4000 sqm warehouse space, using the Schenker standard HTS warehouse management system and with a special electronic Kanban system.

Replenishment orders of parts to Johnson Controls’ production lines are generated by scanning bar coded Kanban containers and racks at Johnson’s factory. The orders generated are filled from Schenker’s warehouse.

Schenker will only deliver parts to the production lines as and when required in order to eliminate storage within the production area. Until the new logistics facility is completed this operation is being handled out of a temporary warehouse in Laem Chabang.

The new warehouse will be operating 24 hours a day and 6 days a week with approx. 40 staff during the first phase. The new warehouse has a useable height of 7 meters and will be equipped with racking systems and dock-levelers. Initially, 7 forklifts, reach trucks and stackers will be operating at this facility.

The location is approx. half-way between Laem Chabang port and the major industrial estates in the Eastern Seaboard.

General Motors, Ford/Mazda and BMW have production / assembly lines in this area and of course all their equipment suppliers have set up here too. The region is often referred to as the “Detroit of the East”.

Laem Chabang port, which has overtaken Bangkok port to become the largest container port in Thailand, is just 12km away.

This facility is just one of three operated by Schenker Thailand with total approx. 15,000 sqm, the others being in Bangkok and Korat. The main targets are companies in the automotive, and automotive related electric and electronic industry.

The following services will be offered: warehousing, inventory management, vendor hub, distribution, deliveries, pick-ups, JIT, Kanban and sequence deliveries, quality inspections, packaging, marking, labeling, sub-assembly building, palletizing, container loading and unstuffing.

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Chubb outsource logistics to TNT

Chubb Thailand and TNT Logistics have signed an agreement that will see all of the fire and security firm’s warehousing and logistics for Thailand being outsourced to TNT and at the same time TNT will employ Chubb services and products at all TNT facilities within the kingdom.

TNT will manage the company’s sea and airfreight, domestic distribution, and warehouse management. TNT will also take over the Chubb warehouse operation and the staff.

TNT will run a dedicated fleet of vehicles to ensure all Chubb products are efficiently transported throughout Thailand. TNT will also ensure cost savings and improved service levels. Chubb’s outsourcing will streamline its supply chain and deliver greater efficiencies in the total process.

“This is a trend that many companies are now following and one which makes absolute sense. It lets us focus on our core business while a professional company attends to secondary services,” said David Viccars, managing director of Chubb Thailand.

He added, “Logistics is vital in developing our business here in Thailand cost effectively and efficiently and we believe that this move will strengthen our performance in the Thai market.”

Chubb Thailand is part of the Chubb Plc Group of fire and security companies and within Thailand offers an international level of service comprising locks, safes and other fire and burglar resistant cabinets, electronic security and fire detection/prevention/suppression equipment, and has an extension security manpower business operating under the Guard Force and Guard Air names with over 3,500 security staff in Thailand.

“Our business in Thailand has been growing at a rapid rate and we are at the stage where we need to focus on sales development and service levels rather than logistics functions. Chubb have had a relationship with TNT in UK for many years and their track record in Thailand and ability to offer us a complete service within the kingdom meant that we could follow the lead set in UK and sign an agreement with TNT in Thailand. I believe that many other companies will follow suit,” Viccars added.

TNT Logistics has rapidly developed its logistics division in Thailand and business has doubled in less than twelve months. The company already operates contracts with the likes of Tops Supermarkets, New Zealand Milk, IBM, and TRW to name a few.

“Logistics in Thailand offers our company many opportunities and I am delighted to say that we are taking them on a regular basis. We are now leveraging our international strength and business is booming,” said Winfried Kiesbueye, country general manager for TNT.

“We can offer companies cost savings while at the same time adding professional expertise into their own systems. This is a model which offers a multitude of benefits and I am sure that many other companies will be seeking similar agreements in the future,” he added.

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Updated every Friday
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Updated by Chinnaporn Sungwanlek, assisted by Boonsiri Suansuk.
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