THPD plans to utilise AI to cut costs, boost deliveries

ThailandPost Distribution (THPD), the logistics solutions arm of state postal service Thailand Post, is gearing up to optimise delivery routes and load utilisation by using artificial intelligence (AI) to reduce fuel costs and level up its delivery capacity.

The approach is expected to reduce fuel costs by 10% while enhancing its productivity and customer satisfaction, the company said.

The firm signed a memorandum of understanding (MoU) agreement yesterday with SWAT Mobility, a Singaporean smart mobility solutions firm, which can support THPD's route optimisation through a transport management system.

THPD managing director Peera Udomkitsakul said the company handles orders, warehouse and transport management through digital-driven operations.

The use of AI tech to optimise route planning will complement the firm's operations through digital transformation, he said.

The MoU with SWAT Mobility can facilitate route planning and load utilisation, which could slash 1 million litres of petrol usage per month, or around 30 million baht, he said.

Mr Peera says that THPD was established to enhance the capability of the postal services.

"We found that the optimisation of route planning powered by AI tech can help reduce monthly fuel costs by 10%," said Mr Peera.

The move can also help reduce carbon emissions in last-mile deliveries, thereby supporting green sustainability in delivery services, he said.

According to Mr Peera, THPD was established to enhance the capability of the postal services.

It provides a complete logistics and distribution service to support economic expansion and e-commerce growth.

THPD focuses on a middle-mile route that delivers parcels between major logistics facilities and warehouses.

It also handles the delivery of medical supplies to people across the country.

SWAT Mobility is a leading smart mobility solutions provider in Asean with expertise in providing demand-responsive, ridesharing services in high-capacity vehicles.

The company also supports logistics operators with load optimisation and route planning via applications and an application programming interface.

SWAT Mobility was listed in the Forbes Asia 100 to Watch List as a startup on the rise in Asia-Pacific.

According to Mr Peera, THPD now has 250 employees and 1,000 contracted drivers.

The firm aims to be listed on the stock market within the next three years and will soon appoint a financial adviser for that, he said.

THPD booked 1.2 billion baht in revenue and 130 million baht in profit last year.

The company recently signed an MoU with Best Logistics Technology (Thailand), the operator of Best Express, to cooperate in large parcel delivery services.

THPD is preparing to launch a new transport management platform that can support farmers and community enterprises with cheap vehicles.

The platform will also support transport operators and product suppliers leveraging e-marketplace channels.