A Focus on Automotive Logistics Leads ANJI-NYK (Thailand) to Five Years of Strong Growth

A Focus on Automotive Logistics Leads ANJI-NYK (Thailand) to Five Years of Strong Growth
Dusida Worrachaddejchai

Automotive logistics has quickly become one of the most important industries in Thailand and is still continuing to grow to this day. As such, many automobile manufacturers and automotive parts manufacturers for world-famous brands have continued investing and establishing factories in Thailand. To meet the growing demands from customers, Thailand has become one of the most important hubs for the automotive industry in Southeast Asian region. Recognizing this importance, ANJI-NYK logistics (Thailand), a leading automotive logistics provider, offers automobile manufacturers in Thailand with quality services that are above and beyond customers’ expectations.

ANJI-NYK logistics (Thailand) is an end-to-end automotive logistics provider which focuses on delivering finished vehicles and automotive spare parts. It is a joint venture company from three well-known and experienced logistics companies; ANJI Automotive Logistics, NYK RORO (Thailand) and Yusen Logistics (Thailand). The joint venture’s goal is to deliver consistent quality services for automotive manufacturers and dealers in Thailand.

In celebration of their 5th anniversary, we sat down with Mr. Shi Su President ANJI-NYK Logistics (Thailand) to find out more about the expertise that makes ANJI-NYK Logistics (Thailand) outstanding and what makes their end-to-end automotive logistics services to Thai customers so appealing.

All Roads Lead to Quality Services

Mr. Shi Su

ANJI Automotive Logistics, China’s largest automotive logistics provider, is the only logistics company that delivers logistics operations for SAIC Motor, a Chinese automotive design and manufacturing company based in Shanghai. ANJI Automotive Logistics was first established by combining all the logistics companies in SAIC Motor into one strong company to develop more efficient manufacturing, operations and to build higher competency in automotive logistics, which is one of the most highly competitive markets in around the world.

Through SAIC Motor’s hard work in becoming the leading automotive manufacturing company for luxury car brands such as MG, Roewe, etc. in China, SAIC Motor decided to invest in MG brands automobile foundations in Thailand. From there they started building a strong partnership with Charoen Pokphand Group (CP) through an automotive joint-venture company called SAIC Motor-CP in 2013. This is the beginning of the partnership between ANJI Automotive Logistics, NYK RORO (Thailand) and Yusen Logistics (Thailand). The main goal of the new joint venture was to deliver end-to-end high-quality automotive logistics services that support the steady growth for SAIC Motor-CP, as the company manufactures MG cars in Thailand and exports the right-hand drive vehicles both domestically and globally.

Mr. Shi Su said “ANJI-NYK Logistics’ operation in Thailand is to focus on offering consistent quality logistics services for SAIC Motor-CP. I can say that Thailand, which is strategic base for automotive industry in the Southeast Asian region, is quite a great market with a lot of opportunities for us. Because of the facts that production volumes and sales volumes of SAIC Motor-CP in Thailand has doubled this year compared to 2017. Moreover, the numbers are continuing to remain positive as time goes by. So that means we have to expand our business to double or triple the current size of our business to meet these rapidly rising demands.”

The main logistics operations of ANJI-NYK Logistics cover in-bound and out-bound logistics operations for automotive parts shipped by ocean freight from the manufacturing plants in China to Laem Chabang Port. For this process, ANJI-NYK Logistics coordinates with ANJI Automotive Logistics’ specialists in Shanghai in order to acquire reasonable plans and costs. They then send automotive spare parts to automotive manufacturers in Thailand with in-land logistics service by using the most effective milk-run zoning routes planned by ANJI-NYK Logistics.

Relentless Pursuit of Perfection

Milk-run logistics is the most common method for delivering automotive spare parts in Thailand and is especially important for supporting Just-In-Time (JIT) production parts. This means automotive manufacturers can produce cars with exact right amount of parts that each plant requires per day dependent on their schedules. This system is the best way to manage and minimize production costs and also has many advantages, such as lower overall transportation costs, improved vehicle load factors, increased inventory space, reduced traffic jams and a reduction of CO2 emissions. All of these benefits are thanks in part to milk-run logistics utilizing trucks fleet efficiently by using less trucks to deliver parts.

Besides their milk-run service, ANJI-NYK logistics also established a Logistics Operation Center (LOC) and warehouse which is located strategically near one of Thailand’s most important industrial estates at Hemaraj, Eastern Seaboard Industrial Estates, Chonburi province as well as Laem Chabang Port. This is important for them to provide faster services and to better control the appropriate level of inventory to ensure that the automotive productions will be smooth, on-time and fully meet customer requirements.

Mr. Shi Su spoke about a few of the challenges that ANJI-NYK logistics faces, “From my previous experiences, there are a few major challenges in automotive logistics. The first one is focused around automotive spare parts, because each car consists of hundreds of different components and they are all important. When it comes to delivery processes, we need to make sure that the right parts are in the right place at the right time, so the line production and the following process will run smooth and on time. On the other hand, if there is just one tiny problem, for example lack of materials or lateness occur during the process, then the whole factory stops. This can ruin the entire automotive supply chain. The next challenge we face is due to the very strict, rigid standards and the high costs of cars nowadays. We have to deliver them in perfect condition, the same condition as they are when they roll out of the factory. So ANJI-NYK Logistics have to provide fast and safe service as our priority is to support both automotive manufacturers and dealers simultaneously by offering efficient deliveries to meet high expectations.”

ANJI-NYK Logistics is recognized by customers in the logistics industry as specialist in delivering automotive spare parts, and yet there is another quality service that ANJI-NYK Logistics is proud of, which is finished vehicle logistics from automotive manufacturers to Finished Vehicle Distribution Center (VDC). The main processes of this service include value-added services such as custom clearance, car parking stock, car washing, PDI (Pre-Delivery Inspection) and transportation to dealers in Thailand.

In a continued effort to provide customers with reliable and efficient service that covers both pre and after sales, ANJI-NYK Logistics also established an automotive spare parts distribution center or Part Distribution Center (PDC) in another strategic location located at Bangna-Trad, Km.19, Samutprakran province that allows smooth connections to meet customers immediate needs for automotive spare parts. Moreover, ANJI-NYK Logistics’ team at their head office in Bangkok is always monitoring and coordinating every operation of the automotive supply chain to guarantee safe and smooth delivery processes.

Building a Bright Future

Besides automotive logistics, which is ANJI-NYK Logistics’ highest expertise service, ANJI-NYK Logistics has begun developing and setting goals for expanding quality services for both existing and new customers of ANJI-NYK logistics from various industries.

Mr. Shi Su revealed the future of ANJI-NYK logistics as he sees it, “We are interested in different fields of logistics and are looking to expand and explore more diverse services that we can offer to our customers. The company’s first target is to become involved in e-Commerce businesses. As technology becomes more sophisticated and more important these days, and as a growing logistics provider, we have to adapt to change quickly in this highly challenging market. This type of business is quite as exciting as it is challenging for us. Moreover, we also plan to expand our services in the high tech and electronics industry as well as cool chain in the future. They are quite different than what we have been accustomed to doing, but I firmly believe ANJI-NYK Logistics has the utmost potential to make all of these ideas into a reality. I think open-mindedness is the key that make us active and ready for the new development and opportunity. So that our business will meet the demands from new customers well.”

As open-mindedness plays a big part in ANJI-NYK Logistics’ organizational culture, there are other best qualities from other cultures that have become intertwined in this joint venture company. For example, hard-work and entrepreneurship from the Chinese work ethic that drives ANJI-NYK Logistics’ employees to work with determination and diligence to achieve their company goals. Together with methodical and disciplinary characteristics from the Japanese that cultivates wisdom for working more efficiently in the company, to the added flexibility from Thai culture that helps maintain work-life balance and improves the productivity of their business; this mix-cultured work environment has become a strength of ANJI-NYK Logistics which makes their employees able to offer the highest quality services possible to valued customers.

Reaching 5 years of service is a noteworthy milestone for ANJI-NYK Logistics, but ANJI-NYK Logistics will always provide customers with best services possible to exceed customer expectations and continues to strive for excellence in automotive logistics and the other areas throughout the logistics industry. As the 9 dots line up like three moving arrows from the three shareholders in ANJI-NYK Logistics’ logo, this symbolizes ANJI-NYK Logistics’ continuous breakthroughs and achievements throughout the company’s development.

ANJI- NYK Logistics (Thailand) Management Team (From the left) Mr. Cao Tengyi – Deputy Finance Manager, Mr. Shi Su – President, Mr. Boonchai Srivanichpoom – Vice President, Mr. Boonmee Oungkananukij – Finance Manager

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Dusida Worrachaddejchai

Dusida Worrachaddejchai, or Pang, is a recent graduate and is one of the newest contributing writers for Airfreight Logistics and Logistics Manager. She’s always been a book worm and describes her perfect afternoon as one with a book in hand and a cat in her lap. Creativity is what drives her as she is also into art, music, and writing. She’s excited to bring that spark to writing and creating content with a focus on the logistics industry.

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