The Digital Economy and Society Ministry (DE) has ordered Thailand Post Co to devise an action plan within 30 days to boost its business capacity amid fierce competition in the delivery industry, particularly from foreign operators.
The state enterprise has seen its market share in courier services decline in contrast to several delivery providers whose earnings have grown several times over the past three years.
DE Minister Buddhipongse Punnakanta said Thailand Post has to improve its operation, management, innovation and mindset, as well as marketing strategy, to cope with critical challenges.
Although Thailand Post still operates with annual revenue growth and profit, the company must be more dynamic to cope with changing customer behaviour and intense competition from international couriers and parcel delivery providers, Mr Buddhipongse said.
Thailand Post wants to establish two new logistics centres and an e-commerce centre by next year, aiming to be more competitive in the market.
"I am aware that delivery service Kerry Express has performed superbly over the past three years, with revenue rising from 3-4 billion baht to 14 billion," Mr Buddhipongse said.
He was speaking after a meeting with the company's board of directors and management yesterday to listen to suggestions and deliver a policy.
Marketing strategy is the most critical agenda item for management, Mr Buddhipongse said.
He suggested the board and management consider applying innovation to its operations, especially for security and big data analytics.
For security, the company may have to install a parcel screening system to filter suspect parcels, such as bombs and drugs, Mr Buddhipongse said. The system could operate at the company's logistics centres.
Thailand Post has 19 logistics centres and 1,300 post offices nationwide.
The minister also urged management to allow employees to be equipped with cameras to help clear up disputes that arise from delivery tasks between clients and staff, and to ensure security.
Mr Buddhipongse said management needs to consider whether the 1934 Thailand Post Act is hindering the company's operations, as it may be out of date.
"If it is decided the act is a hindrance to its business growth amid market competition, the DE Ministry will push for an amendment," he said.
Smorn Terdthampiboon, president of Thailand Post, said the company is focusing on strengthening local e-commerce operators in line with digital-driven economic policy.
The company rolled out www.thailandpostmart.com as a marketplace where products from local entrepreneurs are offered, she said.
It is gearing up for R&D of new delivery channels, including for-commerce boxes, a C2C fulfilment solution and drop-off service. The company will also create a new payment channel to serve digital wallet and the cashless society.
Ms Smorn said the company will continue strengthening its logistics system so as to capitalise on the rise of e-commerce.
Thailand Post expects to gain 5 billion baht in profit this year, up 14% from 4.4 billion last year, thanks to the booming e-commerce ecosystem, improvement of postal and delivery service management, and digitalisation.
Thailand Post is also gearing up for digital transformation in line with the Thailand Post 4.0 roadmap, which regards Thailand Post as a logistics hub for the Eastern Economic Corridor project.
The company plans to spend 12 billion baht on digital transformation, aiming to pursue fully automated operations by 2022.
Of the amount, 7 billion baht will be used to establish two new logistics centres by this year, 4.4 billion to install a mixed-mail and parcel sorting system at 19 logistics centres by 2022, and 1.1 billion baht to upgrade the Counter Automation Point of Sale at all 1,300 post offices nationwide by this year.