Kerry Express Thailand Ltd, a logistics provider, plans to spend at least 1 billion baht to expand its networks and enhance services to meet growing demand for parcel delivery service rising from robust e-commerce business.
Executive director Alex Ng said the budget will be spent to open 100 new distribution centres nationwide, bringing the total to 500 next year, as well as on new facilities, including 1,000 more trucks and motorcycles.
The investment was set after the country expanded its delivery service via a new channel.
Kerry Express recently teamed up with COL Plc, the operator of bookstore chain B2S, and OfficeMate, a business supply solution company under Central Group. The partnership was created with the intention of offering a full range of express parcel delivery services for small and medium-sized enterprises (SMEs).
The "OfficeMate x Kerry Express" parcel delivery service is available at 11 OfficeMate stores in Bangkok and will be extended to cover 37 stores this year, both in the capital and beyond, said Mr Ng.
He said that by the end of next year, OfficeMate x Kerry Express is projected to be available at 80 OfficeMate outlets nationwide.
Last month, Kerry Express set up a new logistics hub in Pathum Thani province with sorting capacity of 200,000 parcels a day to support distribution in northern Bangkok.
Kerry Express's Bang Na logistics hub is being expanded, with the aim of handling capacity reaching 500,000 parcels per day.
"With these capabilities and new expansion next year, we can respond well to the continued growth of e-commerce business," said Mr Ng.
The number of parcels delivered via Kerry Express in 2016 trebled year-on-year to 300,000 pieces per day.
Mr Ng said OfficeMate would be a great start for Kerry Express to penetrate the market, allowing more people to use the service, especially online customers and SMEs.
Kerry Express also plans to offer more services to its customers in the near future to market Kerry Express under the concept "Kerry Express everywhere".
Worawoot Ounjai, chief executive of COL Plc, said the launch of the parcel delivery service would help fulfil OfficeMate's strategy of making the store a one-stop business solutions company to support growth of online commerce and SMEs.
The service is targeted to increase traffic at OfficeMate stores and boost sales by 15-20% next year.
Part of the sales growth is expected from Kerry customers who have never visited OfficeMate before.
Service fees for OfficeMate x Kerry Express are based on the dimensions of parcels, which are not to exceed 25kg per item. The fees range from 35-499 baht.
According to Commerce Ministry data, the value of e-commerce business in Thailand was 105 billion baht in 2016.
Euro Monitor, a market research company, said spending on fashion products via e-commerce channels in Thailand reached 3 billion baht last year and is expected to hit 10 billion by 2021.