to prepare for the coming single market under the Asean Economic Community (AEC).
Many distribution centres and roads were inundated last quarter, crippling the delivery of goods and services to retailers, resulting in temporary shortages of food and consumer products in Bangkok and surrounding areas. Some retailers had to use other logistics firms’ distribution centres temporarily established in dry areas.
“What we need for any given crisis is precise information and alternative transport networks such as by water, without leaving road transport as [the only] choice,” said Assistant Professor Dr Ruth Banomyong, director of the Centre for Logistics Research, Thammasat Business School, Thammasat University.
He added that the state would have to prepare disaster-warning systems so that the private sector could assess risks and contingency plans. The government should also think about using seaports such as Laem Chabang or Bangkok Port in Klong Toei for alternative transport.
Thailand’s transport logistics rely heavily on roads, representing almost 90 per cent of total shipments by value, while the remaining stake is shared by air, marine and rail transport.
Ruth said that because of the flood, many companies would diversify their risks by using higher numbers of suppliers, each handling smaller volumes. Some may consider adding suppliers in such neighbouring countries as Vietnam and Malaysia instead of thinking only of Thailand, to diversify their supply-chain risks.