JWD unveils business transformation in light of fierce competition in the logistics industry, prepared to forge partnership with international players for both vertical and horizontal expansion that meets new-generation consumer lifestyle in digital age under 4 business units. In partnership with a Taiwanese company, food supply chain services are now ready for ASEAN, China and Taiwan.
Charvanin Bunditkitsada, Chief Executive Officer of JWD InfoLogistics Public Company Limited, said that JWD marks the 40th anniversary with business restructuring to cope with fiercer competition and digital disruption that lead to rapid changes in consumer lifestyles. The restructuring covers 4 core business groups:
Logistics Business: More services are added on to serve both B2B and B2C customers, allowing integrated services from the shipment of heavy machinery (project cargo logistics) for investment projects in EEC, e-commerce logistics and personal self-storage to an integrated art storage service called JWD Art Space. In the pipeline is logistics infrastructure investment including a terminal operation service, on top of currently-operational train carriage shipment service at Laem Chabang Deep Sea Port.
Food Business: Food supply chain solutions are on offer: covering material sourcing; processing; and material preparation such as chopped vegetables, bottled eggs and bakery. Targets are quick services restaurants, supermarkets and convenience stores. JWD also provides storage and distribution services and acts as an international food import-export agent.
IT Business: adopt technology and software development as a core vehicle to lead business development and business operation. Business Intelligence will be implemented to analyze big data to forecast customer demand & trend, shape new business model and improve operation efficiency along the value chain.
Investment Group: explore investment options in logistics property or fund including investment fund on other potential businesses.
Charvanin said that the new business structure will reinvigorate the company and allow efficient risk management and sustainable growth. JWD has to date operated in 9 ASEAN countries as planned - Thailand, Myanmar, Laos, Cambodia, Vietnam, Singapore, Malaysia, Taiwan and Indonesia. It will spread its wings to the Philippines this year and plans to penetrate the food supply chain services in each market and expand the services throughout Asia particularly China and Taiwan.
JWD is encouraged to use food services as the flagship expansion strategy because of the following reasons: 1) Strong partner like CSLF, a leading food supply chain service operator in Taiwan with over 3 decades of experience which allows immediate market penetration and income generating in Asean and Taiwan 2) A network of cold storage across ASEAN that will also benefit from the new business and 3) Strong growth potential of the food business as observed throughout the world.
"The process will transform JWD from a downstream logistics operator (with warehouse and transportation services which experience fierce price cuts) to an integrated supply chain service operator. Our services cover sourcing and food processing and manufacturing. We own food brands and a plan to invest in other logistics infrastructure such as terminal operator, rail transfer operator, etc. These will add value to our customers and concurrently satisfy consumer needs."
Charvanin added that strong foreign partners for each business allow JWD to rapidly reach its goals. For instance, through the partnership with South Korea-based CJ LOGISTICS, CJL JWD Logistics was set up to provide B2B logistics service on top of CJ's established network and B2C service in support of growing e-commerce. The company is hence able to address today's lifestyle and global trends. JWD's transformation kicked off in mid-2018. Though at the early stage, it boosted JWD's annualized revenue by 32% in 2018. True benefits are expected to become clearer from 2019 onwards.