In 2012, Titan-VNS shook up the Thai automotive logistics scene as a new provider of comprehensive integrated supply chain solutions tailored specifically to meet the demanding requirements of automotive manufacturers. Just three years later, Titan-VNS has firmly established itself as one of Thailand’s most trusted automotive logistics providers. With innovative service offerings, the latest technology and facilities, and top-notch service and reliability, Titan-VNS has become one of the few Thai companies to serve Tier 1 OEMs (original equipment manufacturer) in the automotive industry. Titan-VNS has won several major contracts to provide logistics services in Thailand for some of the world’s top OEMs, which, when combined, command more than 50% of Thailand annual production output.
In light of their impressive accomplishments, Titan-VNS certainly aren’t resting on their laurels – instead, they’re taking things to a whole new level. By developing their services and IT systems, and launching a new academy to train and advance promising team members, the executives at Titan-VNS are constantly working to grow their business and better meet their customers’ needs.
In this issue of LM, we had the opportunity to speak with the executives of Titan-VNS Auto Logistics Co. Ltd., Mr. Bordin Tanthaphaiboon, President; Mr. Karan Suttijit, Executive Director and the President of Kess Pack & Products Co. Ltd.; Mr. Peera Thaweechart, Managing Director; and Mr. Kriangsak Thanasiranon, Operations Director and the President of the Titan-VNS Academy.
Customized Solutions to Suit Complex Requirements
One of the key differences that helps Titan-VNS stand out from their competitors is their innovative approach to supporting customers. The company isn’t looking to maintain the status quo or to simply offer the same services as their competitors. Instead, they work carefully to understand their customers’ business and design a customized service that will ensure the best solution for each specific customer. With this approach, Titan-VNS can offer greater value – increased efficiency, high cost-effectiveness and more flexibility – to their customers.
Mr. Tanthaphaiboon explains, “We initially started with providing logistics services to Nissan Motor that covered the whole manufacturing process. We handled transport, sequencing management, warehouse management – including a CKD (completely knocked down) warehouse in a free zone. We managed all parts, from large pieces for the body and chassis, to small auto trim parts. We can proudly say that we were very successful in serving this customer.
From their first major success in handling logistics for Nissan, the company was able to secure another major contract, this time with Mitsubishi Motors, who were impressed by the model that Titan-VNS provided to Nissan.
By focusing on bespoke customization to fulfill clients’ exact requirements, Titan-VNS has won several further OEM contracts. The solutions that Titan-VNS has developed offer greater flexibility, which is very important in automotive manufacturing. “These cars that are manufactured for export come in many different variations. Though the bodies may look similar, the specifications, such as engines, seat cushions, tires, etc. are different for each destination country. Each market has different requirements. Therefore, to fulfill these requirements, we customize our solutions to achieve the greatest benefit, and to meet the specific needs, of each of our customers,” says Mr. Suttijit.
The key to these customized solutions is Titan-VNS’ leading edge IT systems. The powerful data management system can receive individual notifications from the manufacturer, such as the car model and specifications. Titan-VNS then knows what parts are required, and can deliver those parts according to the appropriate sequence. The system allows them to support their customers’ assembly lines by delivering the right parts at the right times.
Mr. Thaweechart elaborates, “With our solution, rather than sending parts directly to the factory, where they will sit around if they are not yet needed, the customer can synchronize their different models and variations of parts with our data management system. The parts are stored at our warehouse, then shipped directly to the assembly line in a just-in-time manner. We shorten the time spent for storage, waiting, and picking, which makes their assembly line leaner and more efficient. We streamline their process by picking the necessary parts and positioning them near the assembly line, so workers have the parts they need at the right time.”
With this, customers get two advantages, as Mr. Tanthaphaiboon describes, “First, their manufacturing process gains greater flexibility. By receiving only the parts that they need at the time they need them, they get improved productivity and reduced processes. The second benefit comes from the fact that we’ve changed the way we work with suppliers. Normally, when you purchase parts, they will be sent by batch. You have to pay for the whole batch right away, even if you might not need all of the parts at that time. However, if the parts are stored at our warehouse and sent according to sequence, ownership still belongs to the suppler. Therefore, manufacturers do not have to pay for the parts until they are sent to the factory. This is a pay-per-use or pay-at-point-of-usage model, which enables our customers to calculate their costs more precisely based on the parts that are actually used, without including parts that were delivered but not yet used.”
To enhance their service even further, Titan-VNS is currently developing a mobile application which will enable their customers to access data whenever they need it, wherever they might be. “In the near future, Titan-VNS’ customers will be able to check on their workflow from their smartphones – they’ll be able to see their inventory, what parts are being processed, what parts have been sent to the production line, etc. The enhanced visibility will offer yet another level of flexibility for customers,” says Mr Suttijit.
And we keep striding into the future of logistics. As we continue to break out of the traditional mould we have taken the optimization of the supply chain process a step further by providing component sub assembly services within our facilities that integrates with the sequencing of components. It’s another sector-first from Titan-VNS; it’s a process that’s a clear winner for both the client and their customer in terms of extra efficiencies and cost savings. We collect the components, match them up, sub assemble and then deliver in sequence direct to the assembly line. It’s the future – and we are doing in today.
Introducing the Titan-VNS Academy
Titan-VNS has effectively used technology to enhance its customized solutions, but that is certainly not the only tool the company uses to serve its customers. Having knowledgeable, experienced staff on their team is another key component of the company’s success. And as the company continues its rapid growth, the need for skilled personnel becomes even greater.
That’s why Titan-VNS has made a commitment to invest in its staff by opening the Titan-VNS Academy, a new training initiative which aims to nurture and develop the company’s next generation of management. Through this program, key personnel can gain additional leadership skills and working knowledge that will enhance their skill sets and advancement. The Academy is the brainchild of Mr. Thaweechart, who has appointed Mr. Thanasiranon to lead the training program. Mr. Thanasiranon is uniquely qualified to take on this role, as prior to joining Titan-VNS, he held academic positions at two prestigious Thai universities, where he taught logistics management classes.
From Titan-VNS’ team of over 800 staff members, 25 key personnel were selected for the program after a strenuous evaluation process reviewing the candidates’ potential, skill sets, operational techniques, workplace attitudes and career goals. The 25 chosen staff will take an eight month course which is split into nine distinct modules.
According to Mr. Thanasiranon, “The modules cover the core concepts of supply chain management, as well as key business skills and real world practices. Warehousing management, cost management, integrated logistics solutions, IT and infrastructure are all included. With detailed courses and innovative teaching methods, the Academy will provide its students with a good basis for making an impact in the company.”
Mr. Thaweechart concludes, “Titan-VNS’ competitive edge comes from bringing together the best practices of international supply chain operators along with in-depth knowledge of the local industry that only we can provide. To set new standards for excellence, we recruit only the best and brightest minds in automotive logistics. By educating and encouraging some of our most promising staff, we are not only investing in our people, but we are investing in the long term potential of our company. That’s why the Titan-VNS Academy is the perfect tool to develop our future management team.”