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Monday, December 11, 2023

CRC Thaiwatsadu’s Expansion Success

Thaiwatsadu, a prominent retailer of construction materials and home furnishing products operating under CRC Thaiwatsadu Co., Ltd., a subsidiary of Central Retail, is spotlighting the capabilities of the ‘Wangnoi Warehouse’ situated in Ayutthaya Province. This warehouse is the largest distribution center within the Central Group. With an organized and standardized management system, the facility houses inventories exceeding a value of 2.2 billion baht. This underscores the strength of the growing hardline retail sector, driven by a rising demand for construction materials and home furnishing products in the market.

Thaiwatsadu expressed a strong belief in the capacity of the Wangnoi Warehouse to bolster its omnichannel strategy, aimed at crafting a seamless shopping experience across all channels, encompassing both physical retail locations and online platforms. The company is also in the process of preparing itself to replicate the Wangnoi Warehouse model in the northeastern region. This expansion is intended to establish the warehouse as a central hub supporting 15 regional branches in the forthcoming future.

Suthisarn Chirathivat, CEO of CRC Thaiwatsadu Co., Ltd. under Central Retail, highlighted the vital importance of careful retail warehouse management, especially in a time of exponential growth in the e-commerce industry. As consumer desires revolve around a seamless shopping experience that’s easy, convenient, and fast, it is essential to develop an efficient warehouse management model with steps ahead to enhance the capabilities of the Wangnoi Warehouse in all aspects. This includes enlarging storage capacities, providing training for staff and personnel, and implementing technological solutions to streamline warehouse management, all geared toward effectively meeting the growing demand for hardline products.

At present, the Wangnoi Warehouse functions in alignment with the expansion of CRC Thaiwatsadu across numerous areas. Its capabilities are showcased as follows:

 The Central Group’s biggest warehouse

At present, the warehouse covers an area spanning 180,000 square meters, facilitating the storage of a diverse range of products from partners, totaling up to 42,000 SKUs, with a combined value exceeding 2.2 billion baht. Its primary function is to distribute these products to over 74 branches of Thaiwatsadu and affiliated businesses like BnB home and go! WOW.

        ·       Preparations are underway to invest over 300 million, boosted by the implementation of an Automated Storage and Retrieval System (AS/RS)

The introduction of these automated storage and retrieval systems aims to enhance the warehouse’s capacity to accommodate products, catering to the consistently growing need for home improvement products. Currently, the operational approach at Wangnoi Warehouse involves both ‘stocking,’ wherein products are stored before orders are received, and ‘cross docking,’ where partners deliver items to the warehouse upon receiving orders. CRC Thaiwatsadu will oversee customer deliveries. The systems will be rolled out soon.

  • A role model for Green & Sustainable Retail that incorporates an eco-friendly warehouse

 Thaiwatsadu has taken the initiative and launched a policy to integrate environmental policies into its operations, spanning from the initial stages to the customer experience. Notably, the Wangnoi Warehouse has installed a 1 MWp solar roof within its on-grid system, contributing to the reduction of its environmental footprint. This results in a reduction of approximately 483 tons of carbon dioxide emissions annually, a value comparable to planting 25,000 trees each year. Additionally, there is an expected reduction in electricity expenses by 30%.

Besides, the warehouse has integrated electric vehicle charging stations within its premises to facilitate the usage of clean energy trucks, specifically EV trucks. This initiative is part of a pilot project that was launched in 2022, involving the deployment of EV trucks for delivering goods to various branches of Thaiwatsadu, BnB home, and go! WOW.

  • Preparing to establish a second warehouse in the northeastern region to provide robust support for the continued growth of hardline business

In 2024, CRC Thaiwatsadu will proceed with a plan to extend the successful Wangnoi Warehouse model to the northeastern region. This upcoming warehouse is envisioned to serve as a central distribution hub for 15 branches within the region. The objective is to effectively address the requirements of various growing sectors, including infrastructure, transportation, trade route interconnections, and tourism spanning across regions and borders, thereby enhancing convenience. Furthermore, this initiative aligns with the aim of accommodating the ever-expanding demand in the real estate sector.

Priyavadee Prachuabmoh, who leads the Supply Chain and vFIX divisions at CRC Thaiwatsadu Co., Ltd., a subsidiary of Central Retail, highlighted the significance of streamlined warehouse development. She said, “This is not merely essential for the growth of CRC Thaiwatsadu; it also acts as an additional catalyst, fostering the collective growth of small business partners by easing the difficulties of warehouse management and logistics costs. Partners and stakeholders can rest assured of the implementation of effective warehouse technology, backed by a team of over 1,000 trained operational staff and a work environment that prioritizes employee safety as a crucial aspect.”

The Wangnoi Warehouse holds the ISO 45001 certification, signifying its adherence to occupational health and safety management standards. Additionally, it has achieved the Outstanding Model Enterprise Award for maintaining excellence in safety, occupational health, and work environment, given by the Department of Labor Protection and Welfare under the Ministry of Labour for a continuous span of 7 years.

“The Wangnoi Warehouse in Ayutthaya Province serves as a stronghold for CRC Thaiwatsadu, functioning both as a product storage hub and a central junction for partner products. These items are subsequently dispatched to over 73 Thaiwatsadu branches and related enterprises. This facility plays a vital role in meeting the nationwide demand of Thai citizens for a variety of items including construction materials, tools, furniture, home décor, and electrical appliances. Consequently, our emphasis remains on the ongoing enhancement of the Wangnoi Warehouse’s capabilities, with the goal of ensuring convenience and speed of inventory management and delivery of products to consumers’ hands,” concluded Priyavadee.

Up until August 2023, CRC Thaiwatsadu has successfully opened 8 new branches, which include Thaiwatsadu x BnB home, Rangsit Klong 4 branch, Thaiwatsadu Korat Hua Thale branch, Thaiwatsadu x BnB home Phuket Chalong branch, Thaiwatsadu Kamphaeng Phet branch, Thaiwatsadu Chainat branch, Thaiwatsadu x BnB home Muang Ake branch, Thaiwatsadu Loei branch, Thaiwatsadu x BnB home Samut Prakan branch, Moreover, a continuous expansion plan is in motion with an aim to reach a total of 80 branches by the end of this year, thereby effectively covering key regions nationwide in alignment with the predetermined strategy.

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