Durbell, a distribution arm of TCP Group, the maker and distributor of Krating Daeng energy drink, will spend 2 billion baht over the next three years on new facilities to handle services for external clients.
Saravoot Yoovidhya, TCP Group's chief executive, said the three-year investment plan (2020-22) calls for 400 million baht in spending on technology related to sales, information, marketing, logistics and inventory management, with 900 million set aside for a new distribution centre and five new distribution sub-branches to improve sales teams.
The hope is that sales teams can support more trading partners and product categories.
The remaining 700 million baht is to expand the online and offline distribution channels for better coverage and consumer outreach in the domestic market and to distribute clients' products through TCP's overseas network.
"The modern retail sector is trending towards online sales and sales through vending machines," said Surachai Chonglertvarawong, managing director of Durbell Co. "They are new, growing weapons in the retail industry. Our stores and customers are familiar with online channels. We plan to set up a team to look after the online channels."
The company plans to start an online business soon, Mr Surachai said.
More people are keen to do retail business but have limited funds available because of relatively high land prices and a shortage of labour, he said. Vending machines offer one option for people interested in the trade.
"Our spending will be the largest in 17 years of operations," Mr Surachai said. "We witness changes in the business world where technology disruption becomes the new normal, making work completely different."
He said the company is prepared in terms of corporate structure and human resources, logistics and technology to harness innovation to increase service efficiency for new clients outside TCP Group.
"When our system development is complete, it will allow us to manage our warehouse more efficiently," Mr Surachai said, adding that waste and lost sales opportunities will be reduced.
The system is expected to help Durbell better understand the needs of customers in individual areas and have a better plan for marketing strategies.
Durbell handles the product distribution services both for TCP Group and external clients such as Brands Essence Chicken, Ovaltine, Jele, Magic Farm, Bento, Preaw Coffee and Kopiko.
