DHL and Makro to build US$4.6 million state-of-the-art automated warehouse in Thailand

DHL Supply Chain has announced the extension of the successful partnership with leading wholesaler and retailer, Makro, with its plan to build a new US$4.6 million (167 million baht) automated warehouse.

Located in Wang Noi on the northern outskirts of Bangkok, the new warehouse under construction spans 14,500 square meters and boasts a handling capacity of more than 80 million cases per annum. It offers an improved lead time of as little as six hours from the moment the supplier's goods arrive at the warehouse to the time they reach the retail stores in Bangkok, an improved efficiency of up to 50% in lead time.

The automated warehouse, slated to commence operations in July of this year, will enhance the efficiency for Makro's supply chain and reduce the time-to-market for its dry products. Makro currently distributes products from manufacturers to its 41 branches across the country.

"With this new automated warehouse we are deepening our cooperation with DHL by investing in long term logistics solutions that will benefit both our suppliers and customers," said Phillip William Cox, Executive Commercial Director, Dry-Food & SCM, Makro. "Suppliers can now enjoy a simpler order-receiving and delivery system at the new facility while customers will have access to the newest stock possible in our stores. This well-equipped warehouse will result in higher levels of productivity and accuracy, as well as cost savings, which we will pass on to customers," added Cox.

Constantly grown and innovated

Paul Graham, CEO, DHL Supply Chain Asia Pacific, said, "DHL Supply Chain and Makro can look back on a business partnership that has constantly grown over the last five years. We have continually innovated processes to better support Makro's goal of operating a world-class supply chain. With the increasing demands by consumers and the current economic slowdown, it's even more critical for us to help our customers such as Makro improve their product flows, reduce product lead-times and costs."

Craig Hope-Johnstone, Senior Operations Director, DHL Supply Chain Thailand, said, "The scale and scope of this investment underscores our commitment to customers and against the background of the harsh economic trading environment, this investment speaks volumes for not only the strength of our relationship with Makro, but also Makro's commitments to deliver ever increasing efficiencies to its customers throughout Thailand and DHL's strength to commit these financial resources."

Advanced automation & technology for a highly efficient Makro automated warehouse

The increased throughput of the automated warehouse is made possible by an advanced Autosort system, which can handle more than 9,000 cases per hour. Other key automated features of the facility include:

• High speed belt conveyer inductions
• Camera scanners, which scan all sides of conveyable shipments
• Shoe sorter matrix, which directs the shipments to the relevant chutes according to their destination - one of 41 branches nationwide, be it to branches in Makro Rangsit, Saraburi, Rayong, or Chiang Mai.
• A visualization monitoring system with real time capability that increases operational efficiency and provides additional security.

Makro currently operates 41 stores across 38 provinces in Thailand and DHL Supply Chain has provided Makro with warehousing and logistics services in Thailand since 2004. Currently it handles two distribution warehouses for Makro's ambient and fresh products at Klong Luang, and Wang Noi respectively. In July 2009, the dry food warehouse at Klong Luang will be replaced by the new automated warehouse.