Logistics business of a comprehensive logistics company aiming to provide new high-value-added services

21/07/2022

Hitoshi Takayama

KWE-Kintetsu World Express (Thailand) CO., LTD. (KWE (Thailand)), a Thai subsidiary of the “Kintetsu World Express” Group, which operates in close to 50 countries around the world, is a comprehensive international logistics company that connects Japan, Europe, the United States, and other Asian markets from its base in Thailand. I was transferred from my previous post in Indonesia to Thailand in December 2021, in the middle of the Corona pandemic. As the General Manager in charge of all logistics operations, I aim to provide high-value-added new services with a team of 450 employees

Realizing the potential of the Thai market and burden of responsibility

Thailand is full of various industries from the automobile to home appliances, high-tech, food, and start-up companies. Six months have passed since I was appointed to this position, and I am once again amazed at the high potential of the Thai market and realizing its possible growth. Recently, we received a new logistics project from a company, for packaging of retail sales and its related warehousing/storage operations, which is another achievement for our Thai subsidiary.

Kintetsu Logistics (Thailand) Co., Ltd., a company in our group, acquired GHPs certification

▲ Kintetsu Logistics (Thailand) Co., Ltd., a company in our group, acquired GHPs certification for handling food-related products. We aim to further expand the business in this field by leveraging our experience and know-how.

I was also in charge of logistics operations in my previous assignment, Jakarta, Indonesia, for about three years, and was very surprised at the difference in the degree of penetration and performance in the market as I learn more about the operation in Thailand. For example, as a logistics company, we have about 450 employees in Thailand, compared to about 50 employees in Indonesia. The warehouse area under our jurisdiction is also very different in terms of scale, with Indonesia having approximately 20,000m², while Thailand has approximately 110,000m².

This shows the history of KWE in Thailand, and the hard work and effort of the predecessors, but it is also due in large part to the potential of the market, and I take this as proof that Thailand is still in a leading position in Southeast Asia in terms of the movement of goods. It is a market that is profound and larger than I had imagined, and for that reason I have a heavy responsibility to bear.

The assignment in China, my starting point for the logistics business

My starting point was in Shanghai, China, where I have worked since the late 2000s. At that time, China was looked upon as "a factory of the world," and processing trade was at the center of its driving force for growth. It was a form of trade in which parts and materials are imported, processed and assembled at factories in China, and the products are exported overseas. In such a market, I was assigned to be in charge of "bonded logistics" which required the flexible transaction of goods under Customs control.

Although parts and materials are imported from overseas, they are only in China for a short period of time until they are processed, assembled, and exported. The basic idea of bonded logistics is to improve business efficiency by "suspending" tax procedures once in the process. It was an appropriate system for China at the time of its rapid economic growth. I learned the basics of logistics through bonded logistics for a total of six years.

After completing my assignment in China, a specialized logistics department awaited me in Japan. I was put in charge of sales and management of logistics operations for clients that handle laboratory products such as reagents, culture medium, and test tubes for delivery to universities and research institutes. I was able to experience the depth of logistics such as handling frozen and refrigerated products, proper inventory management, and efficiency improvement, which I had not had much experience with before.

In general, in the logistics business, although we can make our own plans, the essential transportation operations can only be entrusted to carriers such as airlines and shipping companies. However, with the warehousing business, we can hire and manage our own staff, and we can find and implement solutions and improvements on our own. This is what I find attractive about being a logistics manager. In the Thai market, which has a great potential, we would like to offer new high-value-added services that utilize our past expertise.

Hitoshi Takayama
General Manager (Logistics Business Unit & Land Freight Business Unit)
Joined the company in 1998. After experiencing import customs clearance and new business development in Tokyo, assigned to China from 2008 to 2016.
During this period, transferred to Wuhan, China, from 2012 to 2014, and developed new business in the automobile industry and sales for automobile parts manufacturers.
Assigned to Indonesia in January 2019. Assigned to Thailand in December 2021.

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