DB Schenker: Revolutionizing Logistics in Southeast Asia

Introduction: DB Schenker's Global Presence and Southeast Asian Focus

As the world's leading global logistics provider, DB Schenker has established itself as a cornerstone in the international exchange of goods. With a comprehensive portfolio that includes worldwide air and ocean freight, land transportation, contract logistics, and supply chain management, DB Schenker ensures that the flow of goods continues seamlessly while keeping supply chains lean and optimized for success.

In recent years, DB Schenker has turned its attention to the burgeoning Southeast Asian market, recognizing the region's immense potential. According to Forrester Research Institute, B2C online retail in Southeast Asia is projected to reach $53 billion by 2023, driven by growing consumer markets and booming intra-Asia trade volumes. This significant rise in spending power has prompted DB Schenker to expand its customer base in the region, leveraging its expertise in contract logistics and its enhanced strategic focus on cross-border trucking services, known as Asia LANDbridge.

To gain deeper insights into DB Schenker's approach to developing its foothold in the Southeast Asian market, with a particular emphasis on its Thai operations, we'll explore the perspectives of two key figures behind the company's success in Thailand: Mr. Jamil Siddique, Head of Contract Logistics for Thailand, Laos, and Myanmar, and Mr. Saran Limvorasak, General Manager of Land Transport.

Comprehensive Understanding of Logistics Processes

At the heart of DB Schenker's success in supply chain management lies its staff's ability to recognize and address challenges unique to each customer's industry. Regardless of the complexity or difficulty of requirements, DB Schenker's team possesses the know-how to seize opportunities through their open-mindedness, adaptability, and the company's vast network.

Mr. Jamil Siddique, a seasoned contract logistics specialist, brings a unique advantage to DB Schenker's Thai team. With experience working on both sides of the supply chain - for logistics providers in cutting-edge warehouse facilities and for manufacturers dealing with production and distribution issues - Mr. Siddique understands the pain points and expectations from multiple perspectives.

Reflecting on his career journey, Mr. Siddique shared, "I began my logistics career in 1990 working for TDG as a Warehouse Operator. A few years later, the company promoted me to Warehouse Operations Manager, responsible for the world's first fully Automated Storage & Retrieval System (ASRS)." His experience spans multiple countries, including Indonesia, Singapore, and Japan, before taking on the role of Logistics Director for ECCO Shoes in Thailand.

This diverse background has provided Mr. Siddique with valuable insights. He noted, "Working on the manufacturing side of the supply chain was a real eye-opener for me, as I saw first-hand how even the slightest delay in a delivery of materials can cause drastic knock-on effects to the production line in a factory."

In his current role at DB Schenker, Mr. Siddique manages 133,000 sq m. of warehousing in Thailand, primarily located in Bangkok and the Eastern Economic Corridor. He is also responsible for driving contract logistics business across Thailand, Laos, and Myanmar, utilizing his comprehensive understanding of the entire supply chain process.

Cross-border Trucking & Domestic Transportation

On the land transportation side of DB Schenker's Thai operations, Mr. Saran Limvorasak heads up the company's multi-modal logistic services, which include trucking and rail options tailored to customers' needs. With his extensive knowledge of international business development, including a master's degree in Supply Chain Management from MIT, Mr. Limvorasak brings a deep understanding of how to provide faster and more effective transport solutions with dependable lead times.

Mr. Limvorasak explained his background: "My experience as a senior consultant, providing various businesses with corporate strategies and the means to promote their products more effectively, eventually led me to my position at DB Schenker. Not only do I manage the company's land transport, but I also search for ways that will allow us to tap into new markets."

The economic development and subsequent growth in household spending in Thailand and its neighboring countries such as Laos, Cambodia, and Myanmar are driving the demand for increased cross-border movement of goods. In response to this healthy boost in cross-border trucking business, DB Schenker has developed its Asia LANDbridge initiative as part of the company's strategic direction and focus on providing essential land transportation services.

Mr. Limvorasak highlighted the benefits of cross-border trucking: "Cross-border trucking can save you money and time. Depending on the cargo and the destination, it can be faster than ocean transport and cheaper than air freight, especially for our customers in the healthcare sector." He further elaborated on DB Schenker's Asia LANDbridge offering: "It's a full-service offering that encompasses seamless and time-definite door-to-door transportation, a secure and reliable network, and even includes customs formalities at all land borders. It's also a more flexible option as it allows for new transport routes between neighboring countries or regions. With air freight and ocean freight, you rely on fixed schedules of the airline and shipping companies. On the contrary, with trucking, you can be much more flexible about the route and departure times."

DB Schenker's cross-border service extends beyond trucking to include multi-modal rail and truck transportation options that can connect customers in Thailand with locations in Europe via a hub in China. To ensure quality, safety, and visibility across borders, all containers are DB Schenker-owned and equipped with GPS tracking.

For domestic customers in Thailand, DB Schenker offers door-to-door transportation at competitive rates. Mr. Limvorasak noted, "We have also developed and launched an increased level of capability for our eCommerce logistics platform providing enhanced visibility and next-generation technology that caters to last-mile delivery." He emphasized the importance of Thailand's economy, stating, "To this day, Thailand remains the second-largest economy in Southeast Asia, having a large manufacturing and export base, and many of the world's leading consumer product companies like P&G and Unilever have large plants in the country, so the demand for domestic transportation, whether from a factory to the port, or vice versa is there."

Lean Logistics and 4PL Services

DB Schenker's comprehensive view of the supply chain positions them uniquely to offer customers advice on enhancing operational efficiency. Their services go beyond improving operational workflows to facilitating strategies that optimize inventory management, reduce inventory holding, and ensure product configuration, transformation, or localization.

Mr. Limvorasak emphasized the importance of innovation in logistics: "The push for innovation by a logistics provider is important, and one method that has proven success in improving organizations is a supply chain process known as lean logistics. Simply put, this process can be described as a way to recognize and eliminate wasteful activities from the supply chain to increase product flow and speed. To achieve this goal, businesses need to implement leaner thinking."

By implementing lean logistics principles with DB Schenker's assistance, customers can expect improved services or production methods, reduced environmental impact, and enhanced customer satisfaction. This approach demonstrates DB Schenker's commitment to not just moving goods, but optimizing entire supply chains for their clients.

Integrated & Value-added Services

DB Schenker's success in the Southeast Asian market, particularly in Thailand, is built on forming strong partnerships and building trust with its customers. The company's reputation for quality, reliability, and innovation enables it to offer a broad spectrum of warehouse management and transportation services that go beyond basic logistics.

In Thailand, Mr. Siddique and Mr. Limvorasak, along with their teams, combine their skills and experience to offer customers an all-in-one supply chain package. DB Schenker's range of services covers all stages in the value chain, from procurement and production logistics to distribution and after-sales service.

This integrated approach allows DB Schenker to provide a personalized touch that differentiates them from other logistics providers. By understanding the unique needs of each customer and industry, they can tailor their solutions to deliver maximum value and efficiency.

Some of the value-added services offered by DB Schenker include:

• Customized warehouse management solutions
• Inventory optimization strategies
• Supply chain visibility and real-time tracking
• Multi-modal transportation options
• eCommerce fulfillment services
• Customs clearance and compliance support
• Sustainable logistics solutions

By offering this comprehensive suite of services, DB Schenker positions itself as more than just a logistics provider - it becomes a strategic partner in its customers' success.

Conclusion: DB Schenker's Impact on Southeast Asian Logistics

As DB Schenker continues to expand its presence in Southeast Asia, particularly in Thailand, the company is setting new standards for logistics and supply chain management in the region. Through its innovative approach to cross-border trucking, lean logistics implementation, and comprehensive value-added services, DB Schenker is not only meeting the growing demands of the market but also shaping the future of logistics in Southeast Asia.

The expertise and diverse experiences of professionals like Mr. Jamil Siddique and Mr. Saran Limvorasak exemplify DB Schenker's commitment to understanding and addressing the unique challenges of the region. Their insights into both the manufacturing and logistics sides of the supply chain enable DB Schenker to offer holistic solutions that drive efficiency and growth for their customers.

As the Southeast Asian market continues to evolve, with increasing eCommerce penetration and growing intra-regional trade, DB Schenker is well-positioned to support businesses in navigating these changes. By leveraging its global network, investing in technology, and maintaining a customer-centric approach, DB Schenker is poised to play a crucial role in the region's economic development and the transformation of its logistics landscape.

For businesses operating in or looking to expand into Southeast Asia, partnering with a logistics provider like DB Schenker can provide the expertise, infrastructure, and innovative solutions needed to thrive in this dynamic market. As the region continues to grow and evolve, DB Schenker's commitment to excellence and adaptability will undoubtedly make it a key player in shaping the future of logistics in Southeast Asia.