Thailand’s Largest Dairy Producer and Distributor Invests in Enhanced Cold Supply Chain

Oct 2024

KCG Corporation (KCG), Thailand’s leading dairy producer and distributor, is repositioning its new logistics park from a “cost center” to a “profit center,” with the goal of becoming the country’s top provider of cold food supply chain services. CEO and managing director Damrongchai Vipawattakul highlighted this strategic transformation, following an investment of over USD 10 million in the facility’s development. The logistics park is designed to be a world-class distribution centre and warehouse, enhancing KCG’s competitiveness while addressing sustainability concerns.

This shift is driven by changing consumer preferences, which are reshaping modern supply chain practices. KCG is adapting to trends that prioritise a diverse range of high-quality products, with an emphasis on sustainability and excellence. Additionally, the rapid growth of digitalisation and automation in the food industry has prompted the company to invest significantly in technology, enabling it to manage complex systems more efficiently.

Previously, KCG rented multiple warehouses for inventory and distribution purposes. However, in response to evolving market trends, the company recognised the need to consolidate its operations into a single location for better management. In the future, KCG Logistics Park will not only support the company’s logistics and food distribution, particularly for frozen and temperature-controlled products like butter, cheese, and ice cream, but will also offer services to external clients, transforming it into a profit-generating venture.

KCG’s deputy managing director, Danai Galassi, noted that initially, 70% of the park’s capacity will be utilised for KCG’s own operations, with 30% allocated to other clients. The goal is to eventually shift to a 50:50 ratio. He emphasised KCG’s leadership in providing comprehensive cold chain logistics solutions, which are essential to ensuring product freshness and minimising losses. With over 66 years of experience, KCG manages more than 50 brands and 1,800 SKUs, each requiring precise temperature control.

(Source: The Nation)

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