JWD InfoLogistics Public Company Limited (JWD) has set the target of more than 10 percent revenue growth to be realized from the automotive logistics business after being awarded 3-year contracts for on-site yard management and contract to rent out floor area and manage automobiles for new customers with the total revenue to be realized this year worth 130 million baht, while also planning to offer services to customers in the ASEAN region.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD, an ASEAN top logistics and supply chain solution, revealed that in 2020 the Company’s automotive logistics service business will grow well with the revenue target set at 625 million baht – a 10-percent growth, although the automotive business this year has the tendency to remain constant or slow down slightly due to the economic uncertainties and the rapid changes in the automotive technology.
The growth factor in the automotive logistics service business will be derived from new customer base and the expansion of services into the ASEAN region. Lately, AutoLogic Company Limited, a JWD subsidiary specializing in this area of business, was awarded contracts from three new customers within a short span of time worth a total of 130 million baht to be realized as revenue for this year. Each of the three customers has signed a contract for three years.
The services for these three customers are as follow (1) On-site yard management in which JWD sent a service team into the automotive plant and the automobile marshaling yard of the customer who is a major car assembler with the factory located in the Eastern Seaboard Industrial Estate, Rayong Province, on approximately 200 rai of land. The services involve taking the cars from the production line to the marshaling yard and manage the procedures with JWD’s own software technology to deliver the finished vehicles to dealers as assigned. This service is now in operation.
(2) On-site yard management for the manufacturer of a leading European automobile brand within Hemaraj Industrial Estate by taking the car from the production line to the marshaling yard and to deliver the vehicles to the dealers as assigned. The service for this customer has also begun.
(3) The renting of warehouse area to take delivery and manage the vehicles for a leading automobile brand from Japan. The services are expected to start in August of this year. A total of 28 rai will be rented for this contract and to increase to 38 rai next year.
The CEO said the factor that the Company has earned the confidence of the customers was the efficient application of the innovative Auto Management System (AMS) software technology in the services to the customers while also managing to develop solutions for the services and trouble-shooting that are unique to each customer. At the same time, the Company could apply the experience and knowhow in the delivery and management of motor vehicles gained in more than 10 years of business to adjust to suit the requirements of new customers and help them solve problems and deliver their motor vehicles efficiently, on-time and trouble-free.
JWD has a plan to expand its automobile delivery and management services to other countries in the ASEAN region, namely, Myanmar, Cambodia and Vietnam, as the current crop of customers are based only in Thailand. The Company can apply its strong point in its expertise and software technology to modern automotive logistics management and to provide various services such as cross-border transfers and on-site services.
“This year should be the year the JWD’s automobile delivery and management businesses will do well after we have signed on additional customers. At present, we have a customer base of eight firms who are leading automobile manufacturers as we are considered to be among the top service providers in automotive logistics. Therefore, I believe that those factors alone will lead us to successfully expand our customer base in the automotive logistics business in the ASEAN region, the same way that we have succeeded in other logistics services of JWD,” Mr. Charvanin concluded.