Cerebos taking up full ownership of value chain

After the expiry of its distribution contract with market expansion services provider DKSH at the end of last year, the company, headquartered in Singapore, is getting away from dependence on third parties for sales activities to take full ownership of its value chain.
The new business model entails recruitment and training of its own sales and marketing team, as well as the setting up back-end information-technology systems and the development of new business process and cross-functional collaborations, plus massive office expansion.
Neerja Sewak, executive vice president and chief commercial officer of the health supplement division of Cerebos Pacific, said the new business model had already been rolled out in Taiwan, Singapore and Malaysia and had proved successful, with sales increases of 10-20 per cent.
“With the new business model, we are getting closer to customers and consumers. We are able to build better relationships with them, conduct a joint strategy and response faster. The company was able to reduce its lead time for critical matters from between one week and one month to within 24 hours,” she said.
“We will also understand consumers better and get deeper shopper insights. This valuable information will be used to build business plans and strategies with distributors.” 
Sewak said Cerebos had embarked on an aggressive growth strategy in Asia and beyond, and Thailand was one of the company’s high-potential markets.
Brand’s health-supplement products are sold in 19 countries, with manufacturing facilities in Thailand, Taiwan, Malaysia and the Philippines. Suntory Holdings also has strong footprints in Europe, Australia, New Zealand and Japan.
“We are also quite strong in the CLMV markets [Cambodia, Laos, Myanmar and Vietnam]. Our health-supplement products have been developed to meet the health needs of consumers universally. We have seen great opportunities to meet consumer needs in all CLMV markets,” Sewak said.
Cerebos (Thailand) yesterday also announced the appointment of two local logistics service providers – Sino-Pacific and Durbell – to enhance the distribution of its Brand’s and other health-supplement products in both modern and traditional retail channels.
Tul Wongsuphasawat, general manager of Cerebos (Thailand), said that with the new logistics firms, the company aimed to double the direct coverage of product distribution to traditional retailers from 30,000 outlets previously to 60,000 countrywide.
“We have invested Bt480 million in the recruitment of a sales team with more than 900 staff, as well as a new IT system and the expansion of office space. The sales team will be in charge of all major trade customers … directly throughout the country,” he said.
“The new business model is to increase penetration of our products in Thailand, especially Essence of Chicken, by building stronger brand equity and leadership presence in our existing and emerging markets,” Tul said.