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Logistics

Siam Outlet Distribution Center Puts a Focus on Chat Commerce

Siam Outlet Distribution Center Puts a Focus on Chat Commerce
Panthita Phensawang

Consumer buying behavior has been evolving rapidly over recent years. More and more people have begun to turn away from traditional major department stores or market places, with a large majority moving to shopping online. Social media platforms, including Facebook, Instagram, and Line, have risen as another avenue for online shoppers. These platforms have been gaining influence in the daily lives of Thai people, and many vendors see an opportunity in this change of behavior, with Chat Commerce becoming a popular way to buy goods through social media platforms.

Chat Commerce originated from Thai consumers mistrust of standard online shopping processes on websites. In standard online shopping processes, consumers who are curious about the product they want to buy often find themselves separated from vendors who can answer their question. This gives the communicative social media platform the advantage in providing consumers the confidence in service and direct communication with the vendor.

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Ms. Chayapak Sahachatiraklap, Chief Executive Officer, Siam Outlet Limited

The growth of Chat Commerce was observed by a PricewaterhouseCoopers’s study, which suggests that 51% of consumers who have made an online purchase reached out to vendors through Facebook, Instagram, and Line for information. The observation also suggests that Thailand’s domestic Chat Commerce’s market value is estimated at over 1 trillion Thai Baht per annum, which has resulted in a new sector whose function is to manage and facilitate this market’s supply chain. LM Magazine recently had the chance to speak to Ms. Chayapak Sahachatiraklap, Chief Executive Officer, Siam Outlet Limited about the company’s 3PL, warehousing, and last mile services for Chat Commerce vendors.

Linking the Analog and Digital Sides of e-Commerce

Ms. Sahachatiraklap first explained the origin of the company, “Many Chat Commerce vendors have been trying to find a way to save on costs by managing and packing their cargo at their own private household, which can be limited in terms of space and capacity. Siam Outlet was born out of the need of these vendors to better pack and manage their cargo.”

“Siam Outlet has been serving Chat Commerce clients in warehouse management, which covers importing goods, packaging, and delivery. The company will also allocate revenue and check for stock with our precise operating system that updates all information in real-time. The highlight of our operating system is the ability to allocate stock when an order is made, as well as being connected with marketplace sites to assist our clients through many different channels at the same time.”

Siam Outlet has been serving its clients since June 2015 with a facility that reaches over 100 square-meters with space allocated for warehousing, packaging, and delivery. Today, the company has developed its services to cover more functions, which now range from importing, customs clearance, cargo check, and last mile delivery.

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Finding the Formula for Success

The cores of Siam Outlet’s service are correctness and precision. This is because Siam Outlet knows how cargo mismanagement can take a toll on clients in terms of increased expenses and can hurt the reputation of both parties.

 “One of our very core policies is to make no mistakes. Therefore, we are bound to check and make sure every single piece of cargo is in perfect condition before the packaging process. We do this to allow our clients on both ends of the business to rest assured in our services,”

Correct and precise services stem from the effective performance of the operational team. Siam Outlet’s teams receive thorough training to deliver on the different needs of their clients with speed, courtesy, and accuracy in both the process of coordination and cargo caring. The same qualities are applied throughout all procedures in the company’s IT intelligence to guarantee service precision and contribute to their zero-mistake policy.

Exponential Growth

Although Siam Outlet’s biggest clients are mostly Chat Commerce businesses, the organization plans to expand its client base by serving bigger international distributors who have established their online businesses in Thailand.

“Siam Outlet has set a goal for revenue in 2017 at 80 million Baht and 200 million Baht in 2018. 60% of our revenue will be based on Chat Commerce businesses, 20% from bigger distributors, and another 20% from other forms of business. The organization’s growth has increased 10 times compared to last year. With more international and local investors coming to us and requesting business inquiries, the outlook is strong for continued growth,” said Ms. Sahachatiraklap.

Today, Siam Outlet has been developing other service to cement and extend its business. “The organization has launched its ‘Drive Thru Parcel Shop’ where our clients can drop off their pre-packed parcels for us to deliver. Siam Outlet plans to launch 100 of these parcel shops nationwide by 2018” said, Ms. Chayapak. “Furthermore, we have launched a warehouse in Japan to support our Thai clients who want to export their retail products to Japan.”

With Ms. Sahachatiraklap’s experience and expertise in project management, effective trainings, and innovative solutions, Siam Outlet has showcased its capabilities and future potential. The future is looking bright with even more strong growth expected in the near future.

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Logistics
Panthita Phensawang

Panthita Phensawang, or Mhew, is an experienced writer who enjoys using her words. When she isn’t glued to a computer screen, she spends time watching movies and listening to K-pop music and plans trips to exotic foreign countries. Writing for Airfreight Logistics, she gets to see what goes on behind the scenes of how her online purchases get delivered to her door.

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