BANGKOK, Dec 22, 2021 – (ACN Newswire) – JWD InfoLogistics PCL (SET: JWD) Chief Executive Officer, Mr. Charvanin Bunditkitsada discusses the company’s strategy and outlook in The Executive Talk by ShareInvestor.com.
1. What have you learned, and what opportunities have you found from the Covid-19 crisis?
Since the Covid-19 first appeared last February (2020), everyone has been in a panic. In Q2, the logistics industry in Thailand was nearly frozen. JWD launched the Business Continuity Program (BCP) for the first time to deal with the situation. Because it would impact our customers, we couldn’t stop. We have executed BCP four times since then. We have learned that businesses must adapt to survive. We have also set up interviews and meetings online. There are always chances in every crisis. Chance belongs to those who adapt quickly. Covid-19 has uncovered rapid growth in B2C, Last-mile delivery, Online, and E-commerce business. They emerged even before Covid-19 hit the world. This sector’s potential has never been greater because of the pandemic. Just like traditional channels, online trading has demonstrated its great potential. JWD was able to see this trend and began to adjust business before the pandemic. We signed, for example, a JV partner together with potential partners from several companies. Travel restrictions in the region caused us difficulties. However, JWD and our partners could find the solutions to get through them.
2. How can you adapt your business to the rising oil price?
Years ago, when we were facing the swinging oil price, we kept the customers informed about this factor and the necessity that we might need to increase our service fee regarding the oil price. We are aware of the impact on our revenue and income that the recent oil price crisis has had on our income. We have EV technology and JWD has signed a contract to supply it to our Japanese supplier partner. We will thus launch our first EV lorry trial in freight this February. We have also partnered with China to bring more electric trucks. Therefore, to achieve our ‘Green logistics’ mission and maintain the ESG policy, we must implement more EV transports.
3. The container imbalance.
This issue directly impacted our customers. Los Angeles customers sent me an email explaining how difficult it was to obtain containers from Thai suppliers. This led to them not trusting Thai companies. I clarified the situation, and pointed out that the problem was caused by imbalanced freight between large countries. The freight price rose when there was not enough supply. However, I doubt that sea freight companies would profit from raising freight prices. It’s all about balancing freight accounts. Although these issues didn’t impact us directly, we took the opportunity to support our customers by providing temporary storage while the cargo was on the waiting list.
4. Digital disruption is affecting business adjustment.
Talking about digital means the backend or freight management system and the robotic technology that replaces human labor. JWD was the first company to use such technology. It has been in operation under an IT solution initiative since over ten years. We also used Business Intelligence (BI) to provide a dashboard that allows the management team and staff to monitor each unit’s operation. I also have my dashboard to receive daily income and revenue reports.
5. Generation gap management
JWD will soon turn 43 years old. There is a large gap between the older generation, who are nearly retired, and the new graduates. With more than 2,000 employees, we brainstorm experience and know-how from the seniors with the enthusiastic, progressive juniors. We have a strong HR department, I’m proud to say. We are also the industry that is rising sun. Despite the fact that everyone has had to deal with the pandemic, there have been positive outcomes. Many employees in other industries were given the opportunity to work remotely, without pay, or even be fired. None of this happened to us. Therefore, I believe our staff knows how lucky they are with the company’s position these days.
6. Investment in Cambodia and ASEAN
JWD has been expanding business to Cambodia for over five years. Three major parts of our business are: first, food cold chain management and supply chain management. We work with the Cambodian partner, who owns the Pizza Company franchise and Swensens franchise. Second, we invest in the Phnom Penh special economic zone with an estimated 14.6 percent share. The inland container port is also located in the Phnom Penh Special Economic Zone. They have grown quite well and just picked up from the Covid-19 impact. Customers prefer to use inland transport to sea-freight, especially in these times.
7. The backbone of any economy is logistics.
Yes, this is very important. All businesses want survival, regardless of the crisis. Logistics plays an important role in supporting businesses’ backend, transportation management and storage management, as well as air-freight and sea-freight. Logistics can’t stop working. We have much to do in a bull market. A higher volume means a greater supply. The customers are the ones who decide and negotiate the price and services. Logistics is an exciting industry. Most of the time, we must decrease our costs because we profit from the customer cost.
8. Art Storage.
Forty-three years ago, JWD started our first business in moving and relocation services such as home and office move, including exhibitions related to Art. A couple of years before the Covid-19 pandemic, we started the JWD Art Space, aiming to provide Fine Art logistics solutions, and cooperated with the Ministry of Culture. We understand the difficulties involved in Fine Art import, export, and relocation. Some artworks are highly valuable. Collectors often acquire large quantities of artwork. They hang them on the walls. When the work is more extensive, they hang them on the wall. These paintings are too sensitive to be kept in one place. Personally, I am a collector. Fine Art management is something I believe has great potential. We have an art specialist team who experienced more than 20-30 years in this industry. Our customers have always trusted us. We also hosted art exhibitions at JWD Arts Space. One of our events received over 30,000 visitors, which means at least 1,000 per day. The project has been a great success. We want to promote Thai artists and improve the art market. We aim to establish a relationship between them. We have never charged entrance fees. Many students came here, and we see this as an opportunity to bring Thai artists and artworks to the global market.
9. What are your biggest challenges these days?
After Covid-19, I admit that JWD has performed exceptionally well. We have grown three quarters consecutively. My greatest challenge is how I can grow further. How can we keep our performance up to the end of Q4? The Omicron appears to be threatening the economy. It presents us with an uncertain scenario. How can we achieve our next year’s target? Can we achieve the expected growth? These are our problems.
10. We should not be proud about our past accomplishments.
I believe that when we accomplish something as a listed company, others will keep an eye on it. We are in the market, and must operate transparently. This allows us to be copied by other companies, such as cold chain management. This service is very appreciated by everyone nowadays. We aim to develop new products that are sustainable, long-term, and in line with new trends. The commercial team and me must then pursue new products or services that solve problems for our customers. It is a fact that there will be many players on the market and profit margins will naturally drop. They often compete with each other through price war campaigns. We must continue to search for business opportunities and not just stop looking.
11. Which is your work inspiration?
My inspiration. I was only 29 years old when I first took the responsibility in this position due to my father passing away. My father’s dream to register the company on the capital market inspired me. It was possible. He had many goals, and I’ve accomplished most of them. There are still a few more.
12. What is your goal?
My next goal is to grow JWD following our 5-year strategy as we announced to the investors and shareholders that we will reach 10,000 million THB by 2025. We are a strong regional logistics supply chain company. This is especially true in Vietnam where we have shares in Transimex Corporation PCL. We have been awarded a 5-star CG rating for the past two years. We are listed on the THSI (Thailand Sustainability Investments) list. We received the ‘Rising Star Award’ and ‘Best IR Awards from SET. We are trying to transform a family business into a leader in logistics.
About The Executive Q&A Series
The Executive Q&A Series is presented by ShareInvestor, Asia’s leading financial internet media and technology company and the largest investor relations network in the region. For more information, email firstname.lastname@example.org. Website: www.ShareInvestorThailand.com
Topic: Press release summary
Source: JWD InfoLogistics PCL
Sectors: Transport & Logistics, Funds & Equities
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