DHL plans Bt2-billion investment to expand its facilities in Thailand

Over the next two and a half years, the company plans to build new facilities, expand its fleet of trucks, invest in new technology, intensify its training and talent development programmes and create an additional 2,000 jobs.
“Thailand is one of the fastest-growing markets for our business, with our footprint growing 30 per cent in the last year. We want to be ready to grow with our customers as they expand within the market,” said Paul Graham, DHL Supply Chain chief executive officer for the Asia-Pacific region.
Oscar De Bok, CEO for South and Southeast Asia, added: “To achieve this, we are launching several projects in 2013, including an automotive campus on the Eastern Seaboard to leverage our automotive operations, a new warehouse facility at Bang Na to support our retail sector, an expansion of our truck fleet, and a new transport-management system to create greater efficiencies in our distribution capabilities.
“We will also create 2,000 new positions on top of our existing headcount of 9,500 to support these enhancements to our in-country |network.”
Kevin Burrell, DHL’s new managing director for Thailand, said the company would launch its second automotive campus next year to help customers meet the new demands of the Thai automotive industry. Thailand is now in the world’s top 10 in terms of auto production, as a result of a full recovery of the industry from last year's floods and the production increases by both assemblers and parts makers. Demand has also been generated by the government’s first-car-buyer programme.
Next year DHL will also launch a new facility in Bangkok’s Bang Na district to support its growth in the retail, fashion and consumer sectors. The new facility will consolidate the company’s key strategic accounts. It will be fitted with energy-efficient specifications, as well as stringent security features.

THREE-YEAR HIGH
“According to recent reports, the Thai Retailers Association expects the retail industry to grow by 12 per cent this year, the highest in three years and exceeding its earlier projection of 8 per cent,” Burrell said.
“We are also expecting healthy retail growth, and the new facility will help us innovate and develop better and more efficient supply-chain processes. Our customers’ pain points are our pain points. We constantly invest in new processes or technologies to help customers run their businesses more efficiently, in an ever-increasing competitive environment.”
De Bok said: “DHL Supply Chain’s retail operations boast world-class automation and warehouse-management systems, making them among the most productive and efficient facilities in our Asia-Pacific business. We have been able to leverage the retail expertise we have developed here in Thailand in other markets by replicating the best practises from our key retail sites.”
DHL’s transport fleet, which currently consists of more than 1,000 vehicles, is capable of averaging more than 1,200 trips per day and covering more than 11 million kilometres every month. Over the next few years the company says it will continue to invest in its fleet and increase subcontractor partnerships to support growth in this sector.
Before taking to the road, all new DHL drivers undergo an intensive training programme that covers classroom and yard exercises, simulation activities and on-the-road practice. These on-the-road skills are constantly refreshed. All drivers graduate from the DHL Supply Chain Thailand Transport Driver Training School at a distribution centre in Bang Yai district, Nonthaburi province.
DHL Supply Chain Thailand has also pioneered a School of Excellence where world-class employee-training programmes covering major areas of its operations are developed for the whole Asia-Pacific business.