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Frasers Property seals deal with Central for omnichannel distribution centre

Aug 15. 2019
Photo by FPT
Photo by FPT
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By The Nation

Frasers Property (Thailand) Plc (FPT), through its subsidiary Frasers Property Industrial (Thailand) Co Ltd, has signed a 15-year lease agreement with Central Retail Corporation to develop over 75,000 square metres for an omnichannel distribution centre within the Frasers Property Logistics Centre in Bangplee. 

The new development is set to be Thailand’s first “world-class logistics campus", the company said, and it will equipped with state-of-the-art facilities to serve the needs of their logistics operations in the digital era. This facility will also be next to the existing more than 30,000-sq m Power Buy distribution centre, which was also delivered by FPT in 2018. This facility is poised to be the largest logistics campus for Central Retail group in Thailand, aimed at enhancing the efficiency of the group’s logistics and distributions operations.

Sopon Racharaksa, president of Frasers Property Thailand, said that the company is delighted to with partner Central Retail to develop the new omnichannel distribution centre.

“The project is considered a flagship project that will transform warehousing development in the logistics industry – a true reflection to FPT's expertise and commitment in industrial property development through operations that adhere to the needs of customers and our customer-centric and human-centric approach. By offering services and solutions that create valuable experience for our customers, the company continues to gain trust and confidence from our leading partners in all industry sectors,” Sopon said.

“In addition to environmentally-friendly focus, the hybrid layout design will allow for future business expansion with high storage zone of 25-metrer clear height area that can support up to 10 tons per square metre, which will facilitate automated storage and retrieval systems (ASRS) or other automation technologies and innovations according to the customer needs.”

Piyapong Thanyasrisung, chief operating officer of Central Department Store, said: "Central Retail Corporation, as Thailand's leader in retail business, is committed to bring about the next level of superior customer experience in order to inspire their lifetime loyalty. To invest in such an advanced omnichannel distribution centre is one of the key elements in delivering services that creates better customer satisfaction. It also prepares the company with greater aptitude to support the rapid growth of the omnichannel platform. Central Retail Group's total sales have shown strong growth in all of its retail categories.”

Omnichannel contributions to fashion, hardline and food sales increased by 16 per cent, 28 per cent and 48 per cent, respectively, in 2017, by 72 per cent, 75 per cent and 31 per cent, respectively, in 2018 and by 104 per cent, 50 per cent and 26 per cent in the three months ended March 31, 2019. Central Retail is considered the first company to execute the long-term plan for e-logistics, in line with the business aspiration to become Thailand No.1 customer-centric omnichannel platform.

This omnichannel distribution centre is aimed at creating efficiency in logistics management for Central Retail's multi-category products and to cater the extensive coverage for multi-channel distribution through both physical and digital platforms while implementing cutting-edge operational technology such as e-ordering, ASRS and automation voice-picking system. Additionally, this project would help creating over 1,000 jobs in Bangplee area,” Piyapong said.

Central Retail commissioned FPT to design and develop an environmentally-friendly facility as a commitment to sustainable development and energy-saving. The campus will also feature sustainable and wellness features such as solar rooftop, co-working space, running track, and multi-purpose fitness court that will uplift quality of life for the staffs who work inside the facility.

Central Retail aims for the new logistics campus to become a distribution hub shared by affiliated companies of Central Retail such as Central Department Stores, Robinson Department Stores, Supersports, B2S, OfficeMate, Central Marketing Group (CMG) stores and Power Buy.

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