In addition, he said, many multinational firms were no longer concentrating on any single country but were looking at Asia as a single market, especially when the AEC plays a bigger role.
“We will have to take into the account not only floods, but also other potential disasters as risk factors,” Ruth said.
To prepare for possible disasters this year, many retailers agree that the country should go back to its previous business model for distributing goods and products, said Viraj Nobnomtham, managing director of shipping firm Ecu Line (Thailand).
A few years ago, the distribution-centre model changed from one of decentralisation like the hub and spokes of the aviation industry to a more centralised system, which was viewed as more cost-effective. Having only one large cross-docking centre in each key area, such as the Central, North, Northeast and South regions, was viewed as sufficient; all products after being delivered by suppliers were immediately distributed and redelivered in smaller trucks to retail stores in nearby communities. Previously, goods and products were delivered to the centre first, then distributed to warehouses in several key areas before delivery to retailers.
“This year, I think the logistics model must be changed. Each key area will be an additional distribution centre. If one is inundated, the other one can be used instead,” Viraj said.
In addition, he said, many multinational firms were no longer concentrating on any single country but were looking at Asia as a single market, especially when the AEC plays a bigger role.
“We will have to take into the account not only floods, but also other potential disasters as risk factors,” Ruth said.
To prepare for possible disasters this year, many retailers agree that the country should go back to its previous business model for distributing goods and products, said Viraj Nobnomtham, managing director of shipping firm Ecu Line (Thailand).
A few years ago, the distribution-centre model changed from one of decentralisation like the hub and spokes of the aviation industry to a more centralised system, which was viewed as more cost-effective. Having only one large cross-docking centre in each key area, such as the Central, North, Northeast and South regions, was viewed as sufficient; all products after being delivered by suppliers were immediately distributed and redelivered in smaller trucks to retail stores in nearby communities. Previously, goods and products were delivered to the centre first, then distributed to warehouses in several key areas before delivery to retailers.
“This year, I think the logistics model must be changed. Each key area will be an additional distribution centre. If one is inundated, the other one can be used instead,” Viraj said.
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