Top 5 express delivery in China, entering Thailand with Loscam.
In December 2018, Loscam Thailand was incredibly proud to announce our logistics partnership with BEST Inc., formerly known as BEST Logistics Technologies, a Chinese logistics company backed by the Alibaba Group and one of the largest express delivery firms in China.
We are delighted that BEST Inc. chose us to join the journey of its expansion in South East Asia via Thailand with a regular order of our standard ECR Pallet, so to celebrate on this 1st anniversary of the partnership we do a deep dive with Mr. Jason Qian, General Manager of Southeast Asia and CEO & President of BEST Inc. Thailand, for some expert insights into this exciting market.
BEST Inc.’s positioning in Thailand & the core business in the market.
BEST Inc. is a leading integrated smart supply chain and logistics solutions provider, and has eight successful supply chain businesses in China and across 19 countries globally. Their target is to expand into the entire Southeast Asia within three years, with Thailand as a promising hub for the region. So far BEST Inc. has already launched Express and Supply Chain businesses in Thailand and Vietnam, with a focus on the Express business which is highly competitive in Southeast Asia.
Along with the rapid development of cross-border e-commerce in Southeast Asia, BEST leverages its advantages in technology, management, and transportation resources to build a complete network and provides customers with smooth and seamless services. In the future, BEST plans to focus on facilitating the e-commerce logistics services in other Southeast Asian countries based on their experience from Thailand, exporting technologies and services to more countries in order to meet the growing logistics needs across the region.
With express services likely to become more significant in the near future, let’s look at the main factors key to logistics and express delivery.
Since BEST is the first and only logistics company with a franchising model in Thailand, they distinguish themselves from peers through their close collaboration with local partners. “Global to Local” is the classic key element to set them apart and make them successful.
With the development of e-commerce and the consumers’ rising demand for quality express services, BEST believes that keys to success are: 1. Sincere service; 2. Perfect technical support; and 3. Affordable price. They said that they need to give users more convenient service experience, with fast and safe delivery of parcels.
As BEST Inc. has gained valuable business know-hows from more than a decade of development and built a superb franchise network, they can quickly adapt to meet the growing needs of customers.
With an increasing consumer preference towards faster delivery, comes a requirement to focus on the challenges & issues of logistics in the Thailand market.
The challenges BEST faced can be summarized into two categories:
- “Different customers have individual or variable expectations of service, so one of BEST’s biggest challenges is to design customized delivery services, for example fruit delivery, food delivery, large e-commerce items, to meet the customers’ demands.”
- There is a rising demand from consumers in upcountry provinces. Another challenge for BEST is that they need to put more emphasis on upcountry provinces and allocate more resources to the networks there to improve our service in remote areas.”
BEST Inc. prefers to rent than to buy pallets, stating advantages of its asset-light model to express & logistic business.
The rental model requires smaller capital investment than the purchasing model, and it is easier to manage the deterioration. It is lower the costs of operation by reducing the management of warehouses and logistics.
Loscam is a massive wooden pallets company in Thailand, with many depots ready to fulfill all the pallet requirements across BEST’s warehouses, the price is very reasonable and entirely suitable for this market. This is exactly what BEST is looking for!
Loscam has provided a great price rental offering to the BEST supply chain business. From the initial step of supply chain warehouses used on the closed loop model, to Loscam recommending new pallets for rotation use in the warehouse, to Loscam providing the fasten delivery new wooden pallet from their depot directly, the service has been invaluable.
In future plans for the partnership, the BEST supply chain warehouse is expanding upcountry in order to find more customers, so the volume of storage thus is increasing, which means Loscam might offer them a special price to serve as the most effective cost platform for BEST.
They look forward to a future going together with Loscam as a BEST key partner!