DHL Supply Chain partners Tesco Lotus to deliver 50.4 million grocery cases annually

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Tesco Lotus, a leading retailer in Thailand, has appointed DHL Supply Chain Thailand, the global market leader in contract logistics solutions, to provide transportation and warehousing services at its Regional Distribution Center in Surat Thani, in the Southern region of Thailand.

Ann Bell, COO, Tesco Lotus said, “At Tesco Lotus, our core purpose is to serve customers a little better every day while we also work to maximize our operating efficiency. After a thorough review and deliberation, putting our customers at the heart, we have decided to partner with DHL Supply Chain, a global and local leader in supply chain management. The strategic partnership will allow both parties to exchange knowhow in order to further develop our business for future growth.”

This partnership will see DHL Supply Chain manage Tesco Lotus’s warehouse operations in Surat Thani, an impressive 51,500 square meters (sqm) facility that houses its inventory of groceries that cater to consumers in Southern Thailand. The DHL team will handle the inbound and outbound activities, inventory management and temperature-optimal storage of fresh and frozen food products. Equally, stringent control checks of the quantity and quality of goods moving in and out of the distribution center will be imposed to ensure that all safety and security standards are strictly adhered to in accordance with local laws and regulations.

Kevin Burrell, CEO DHL Supply Chain Thailand Cluster said, “Under the current challenging circumstances, where quality retail products are needed to support the quality of life of Thai people, it is imperative to be agile and fast-moving to ensure consistent delivery of these products. With our logistics expertise and market-leading innovation and technology, we are committed to providing Tesco Lotus with best-in-class warehouse and transport services. We do not see ourselves as a service provider but rather, we are strategic partners who work hand-in-hand to customize the best solutions for Tesco Lotus to achieve their business goals.”

DHL Supply Chain will provide transport distribution services from Tesco Lotus’s Distribution Center to 220 Tesco Lotus stores in the Southern region of Thailand and deliver products totaling more than 50.4 million cases annually. To improve efficiencies in this process, DHL will add  innovative 32-pallet trucks to Tesco Lotus’s fleet, which is expected to reduce load and uncoupling time by 50% and carry approximately 23% more volume, per trip.

There is a growing focus on online sales in Thailand but offline sales still generate a substantial volume. . Online to Offline (O2O) is a new business model that focuses on connecting the online and offline channels, with players using the internet to attract store-based sales. Tesco Lotus operates its own online shopping platform and has presence on Thailand’s leading online marketplaces Lazada and Shopee. The retailer also offers other omni-channel services leveraging on the strength of its network of stores and online platforms, including Click & Collect, Chat & Shop, and Chat & Collect.