Competition in the logistics industry is becoming fiercer due to an ever-increasing number of logistics providers. Companies must be able to distinguish themselves from the competition by precisely answering client demands, as well as having a complete range of services, and a wide area of coverage. Furthermore, being recognized for quality service builds trust and confidence, especially receiving an award that stands as proof of the companies’ ability and reliability.
LEO Global Logistics (LEO) was the recent recipient of the Excellent Logistics Management Award (ELMA) 2016 in the third-party logistics provider (3PL) category from the Department of International Trade Promotion (DITP), Ministry of Commerce. The award is given to a 3PL that thrives for excellence in service management, which includes the assuring cargo delivery and service professionalism.
We recently had the opportunity to speak to Mr. Kettivit Sittisoontornvong, Chief Executive Officer, LEO Global Logistics, who shared his experience, overview on providing logistics services, and vision on organizational management that has led the company to becoming the sole winner the ELMA Award 2016.
Excellent Logistics Management
The Excellent Logistics Management Award (ELMA) aims to maximize logistics service providers’ potential and ready Thailand’s logistics industry for international competition. ELMA 2016 involves an internationally recognized assessment criteria similar to those of the Malcolm Baldrige Framework, European Framework for Quality Management, and the Supply Chain Operations Reference Modal: SCOR Model (SCOR) developed by the Supply Chain Council. Thus, the consideration for ELMA has a provision of highly qualified judges from both public and private sectors. Having such high criteria, the award is helping to guide the development of Thai logistics businesses towards better conduct and practice.
“Receiving the ELMA is an honor for us. In order to be recognized, it took the effort of both the management team and everyone in the company. All of our team members have been dedicated with their time and worked hard for us to meet our goal.”
Additionally, having logistics business exports on board with us is another reason why LEO Global Logistics has been praised by the logistics industry, and has led to this honorable recognition, said Mr. Kettivit.
Striving for Success
Mr. Kettivit shared the secrets to LEO’s success that ushered in such recognition. It involves a high level of professionalism and strategic management, as well as careful marketing and sales management. The application of this operational style has proven effective and yields tangible results. “The company has a business plan that sets annual goals for each department’s improvement. We also communicate internally to keep everyone in the company on the same page when it comes to our common work goals. Over the past years, LEO has been implementing management and assessment balanced scorecards, along with Key Performance Indicators (KPI) assessments for annuals goals and other criteria. Furthermore, we have a management policy that favors empowerment and delegation to mid-level executives of our company, and allow them more management and decision-making authority,” said Mr. Kettivit.
Besides having proven-successful management strategies, LEO also put efforts into developing their team members’ potential, which is a vital part of having a smooth and responsive workflow. Mr. Kettivit added, “We have established LEO Academy especially for training our staff, so that they are equipped with right knowledge and understanding of the logistics industry. Each staff member takes a standardized test for logistics-related jobs. Once they’ve passed the exam, they will be able to understand and precisely answer the needs of our clients and can yield measurable results. According to the comments we’ve received from our clients between 2012-2015, complaints were made on less than 1% of all combined shipments during those years. The statistics convey the care that our staff members put into their service, and how they’ve earned the trust by providing quality service.”
Future Development Plans
Over 26 years of operational experience has led LEO to providing an ever-expanding range of services. The company also strives to expand its networks and to reach more and more destinations to constantly expose their brand to new clients.
For the last three years specifically, LEO has been expanding its presence abroad to fuel development and future economic growth by partnering up with other business entities. An example of this expansion is the establishment of LEO Myanmar Logistics in Yangon, the Republic of the Union of Myanmar. The established business serves ocean and air freight, as well as road transportation, import-export, project logistics, and heavy lifts within Myanmar.
“LEO recognizes the demand for cross-border logistics service that has been increasing ever since the launch of the ASEAN Economic Community. Therefore, the company plans to expand our cross-border service network within the CLMV region (Cambodia, Laos, Myanmar, and Vietnam), and plans to extend our reach to other countries within the ASEAN region in the near future”, said, Mr. Kettivit.
In 2017, LEO has plans to improve its logistics service network coverage with ‘LEO e-Fulfillment Center & Distribution Services for e-Commerce,’ to support the rapid growth of the e-Commerce industry. The planned service expansion will include a warehouse, packaging station, and time-precise transportation service to meet demands within the market.
An effective development roadmap has sent LEO Global Logistics on a path for consistent and outstanding growth. LEO has stepped up as a blueprint for others as they are the country’s forefront 3PL business. This success is a strong motivator for the company to continue moving forward, and mobilized it for international competition.