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Bangkok Post
Bangkok Post
Business

Delivery operators home in on tie-ups, customer engagement

Workers sort parcels on a conveyor belt at a logistics centre of Ninja Van Thailand that is able to handle more than 800,000 parcels a day.

Express delivery operators are emphasising partnership, customer engagement and service speed as key drivers to scale beyond low prices amid the economic headwinds of high fuel costs and tough competition in the segment.

State enterprise Thailand Post has worked with Silverman app to support the work of juristic persons in real estate projects to develop a "pick up" feature that allows postal employees to pick up parcels that residents want to send from their home.

The app is slated to serve residential projects operated by SC Asset, Land and Houses, Sansiri and Pruksa.

Flash Express, the local logistics unicorn, announced a partnership with TikTok Shop by providing door-to-door delivery services and 12,000 drop-off points. It also supports Line Shopping for delivery services.

The company also partnered with 7-Eleven, allowing customers to use Flash Express services around the clock with service charges starting at 22 baht, said Charaspak Karnplumchit, a group partner at Flash Express.

Flash is also working with PTT Oil and Retail Business Plc (OR) and e-marketplace Lazada to offer a discount when Lazada shoppers choose to pick up their ordered products at smart lockers provided by Boxsi which are installed at OR's petrol stations.

SET-listed Kerry Express is pursuing its "Kerry Everywhere" plan to penetrate deep into communities by providing strong coverage in terms of delivery services, but with an asset-light model, while jointly investing in a smart locker business.

Kerry has joined forces with premium Japanese convenience store chain brand Lawson108 to open its service points within over 88 stores nationwide.

The company is also putting more emphasis on delivery services between China and Thailand.

Pierce Ng, chief operating officer of logistics operator Ninja Van Thailand, said the high rate of inflation could lead to an easing of economic growth.

"There is a need for the logistics industry to scale up with foresight and early planning to cater for the needs of users," Mr Ng said.

He said the pandemic drove the growth of online spending in the country by 68% from 2020 until 2021. Online spending is still expected to rise between 2021 and 2025, albeit at a slower pace.

Ninja Van Thailand has invested in a new sorting hub that can handle more than 800,000 parcels a day, which can increase its parcel-handling capacity by 40%.

With the newly installed four-kilometre-long semi-automated parcel sorting conveyor belt and 300 loading docks, the company can increase sorting efficiency by 200%, thereby increasing delivery speed by up to three hours, Mr Ng said.

It also launched Ninja Rewards, a points-based loyalty programme, which allows shoppers to redeem prizes, discounts and other privileges.

"Thailand is one of the most contentious markets in terms of express delivery in Asean as the country is a large market for e-commerce," said Mr Ng, adding that the company will not focus on price cutting but speed and customer loyalty to create a difference.

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