DURBELL, a logistics arm of TCP Group company, yesterday announced a three-year business plan as it aims to be the country’s leading logistics service provider for fast-moving consumer goods.
Under the plan, the company will invest Bt2 billion in three core areas. The first is technology development to boost efficiency in sales, information, marketing, logistics and inventory, as well as comprehensive customer service. The second is expansion of distribution centres, sub-distribution branches and sales teams to support increasing numbers of trading partners and product categories. And the third area to get investment is introduction of new online and offline distribution channels, including vending machines for better retailer coverage and consumer outreach while improving overseas business opportunities through TCP’s network.
TCP is one of Thailand’s leading consumer goods manufacturers, and the owner of many well-known beverage and snack brands including Red Bull, Ready, Sponsor, Puriku and Sun Snack.
Durbell has also set a target to reach Bt30 billion in annual sales revenue in the next three years and is looking to increase the proportion of brands from outside the TCP Group to 60 per cent, up from 40 per cent today.
Saravoot Yoovidhya, TCP Group’s chief executive officer, said that the three-year business plan aims to support TCP’s vision to be among Thailand’s most admired corporations and to triple TCP’s sales to Bt100 billion in 2022. It also serves to take Durbell to the next level as a specialist in consumer goods distribution with the ability to offer its current and potential trading partners comprehensive advice and service covering all marketing channels, right from production to distribution, as well as sales and marketing strategy courtesy of their sales teams of long-time employees.
Surachai Chonglertvarawong, managing director of Durbell Co Ltd, said theirs is a company that has been in the business for a long time and has a strong business infrastructure for goods distribution. At the end of 2018, the company recorded over Bt17 billion in revenues, and is expected to nearly double that to over Bt30 billion within three years so as to be a true leader in distribution services.
Surachai said Durbell sees changes in the business world where disruption is increasingly the new normal, which is completely transforming their work. Therefore, the company has prepared itself, especially in corporate structure and human resources, logistics and technology in order to be able to harness innovations to increase efficiency and better its services for its trading partners and customers.
Under the three-year plan to cope with a potential increase in the number of trading partners outside TCP, Durbell has invested in a range of technology systems with an emphasis on sales and distribution management, warehouse management, business intelligence and customer relationship management.
“We plan to add another major distribution centre and five sub-distribution branches within three years in high-potential provinces,” said Surachai. “We’re looking to add 200 more sales trucks and at least 400 sales staff. When the existing branches and the new ones to be opened are combined, Durbell will have a total of 30 sales offices with built-in sub-distribution centres. The company will be among just a few operators with a big national coverage.”
Durbell is currently operating 24 sub-distribution branches and cover 140,000 retail stores throughout the country including mom-and-pop shops, wholesale stores, convenience stores and modern trades. The company takes only two days to bring products to stores, the shortest time in the industry. It has also more than 300 delivery trucks and 600 mobile sales teams together with 2,200 sales and support staff.