Help on way for logistics providers

To help logistics providers cut costs and boost performance, the Software Industry Promotion Agency (Sipa) is planning a pilot project that will encourage the use of enterprise-resource-planning (ERP) solutions by the industry.

The pilot will be implemented in the Northeastern region of Thailand. Sipa has tied up with the Northeastern Software and Business Innovation Association and the Northeast Truck Association for the project.

During the one-year pilot, open-source ERP solutions will be implemented at six truck companies by six local software houses, Sipa open-source manager Paitoon Butri said.

Sipa will take care of the project coordination and provide funds for software-development, training and project implementation.

"The project aims to help truck companies reduce the number of routes on which trucks run empty through the use of technology. The companies can pool in information and use it to go in for route- and invoice-sharing," Paitoon said.

The project will not only help boost open-source software development in the country but also help the local software industry penetrate new local markets.

"Sipa will get the Northeastern Software and Business Innovation Association to select six software companies from its 17 member companies. The Northeast Truck Association will select the six truck companies for the project," Paitoon said.

The Northeast Truck Association has 400 members, who together run 12,000 trucks. The association's president Pramote Kongthong said the trucks run empty on 60 per cent of the total logistics routes. The companies lose a lot of money on empty routes.

"In the past, most companies lacked the technology and information-sharing systems. So, they lost a lot of competitive advantage. The open-source ERP project will help us utilise our existing resources in order to improve cost performance," Pramote said.

The truck association expects the open-source ERP solution to be ready for implementation by the end of this year.

Sipa president Rungruang Limchoopatipa said the pilot project can be later implemented on a larger scale to help the country become a logistics hub in the Northeastern region, catering to Laos, Vietnam, Cambodia and China.

"Most of the consignments coming out of the Northeastern region are agricultural goods. Food and agricultural goods are playing an important role in the world. The region is a major producer of such products. If we can help the region cut logistics cost and improve performance, the country will stand to benefit," Rungruang said.

      At a glance

n During the one-year pilot, open-source ERP solutions will be implemented at six truck firms by six software houses.

n Sipa will provide funds for software-development, training and project implementation.

n The ERP solution is expected to be ready for implementation by the end of this year.