Express courier Kerry Express Thailand Plc has launched a "LEAN" programme to enhance operational and cost efficiencies in many areas, as well as gain market share during the economic recovery.
In 2022, Kerry Express started using an aggressive pricing strategy to maintain its leadership in the market.
For 2023, as the company focuses on developing its potential while reducing internal operating costs, it introduced the LEAN programme, which consists of: cost reduction and rigorous expense management; reduced senior management remuneration; limited recruitment of additional staff in all departments; and closures of non-performing sites and locations.
Kerry Express is also accelerating investment for the acquisition of machines, equipment and systems that will further automate many aspects of work processes, as the company has acquired technology and industry know-how from affiliates such as SF Holding in China and Kerry Logistics Network (KLN) in Hong Kong.
The first batch of new equipment is scheduled to arrive in Bangkok in the first quarter and be operational in the second quarter.
"Whatever hardships there are in current market conditions, such as inflation, rising oil prices, labour shortages or macroeconomic uncertainties, a good and responsible market leader should always look inward to find ways to improve cost efficiency," said Alex Ng, chief executive of Kerry Express.
"This includes the ability to improve employee productivity and creativity. We decided to launch the LEAN programme in the first week of 2023 to demonstrate our commitment to developing the organisation from within and turning the situation into profitability.
"We are expediting investments and procurement of machines, systems and equipment. These should reduce our operating costs immediately, while pushing our operations to another level. We received a lot of knowledge and inspiration from SF Express and KLN, especially in terms of technology and industrial know-how. In addition, we will slow down business development in other areas and non-core businesses so our people can focus on the these initiatives to the best of their ability.
"While these goals are not easy, we believe this is a step in the right direction. We expect a breakthrough in profit recovery and in bringing Kerry Express to another level of success in a very short time.
"Kerry Express has a long track record of adapting to changes. We do not believe in any golden winning formula other than non-stop improvement."