LEO Global Logistics Enhances Service Sustainability with F.A.S.T’24 Strategy

Considering the uncertain state of the world economy and the challenge posed by a decline in Thailand’s export value, LEO Global Logistics Public Company Limited (LEO), a leading end-to-end logistics provider with over 33 years of industry experience, is adjusting its business strategy for next year. This adjustment involves a more proactive upgrade of its business and services, accompanied by the introduction of a plan for 2024 named F.A.S.T’24 (Focus on Sales Growth + Agile Vibration + Sustainability & Superb Business Model for Terrific Performance). The mission is to conduct business, adapt the organization quickly and efficiently, and provide services with an excellent business model that creates sustainability and environmental friendliness, starting from 2024 onwards.

In this issue of LM magazine, we had the opportunity to talk with Mr. Kettivit Sittisoontornwong, Chief Executive Officer of LEO, regarding the ‘F.A.S.T.’24 strategy to expand the customer base and company’s revenue and the ideas of Smart & Sustainable and Green Logistics to implement with LEO’s services.

Strategic Roadmap’ F.A.S.T’24’

In 2023, LEO Global Logistics embraced a 365-degree collaboration strategy to generate opportunities for growth by venturing into a range of logistics and non-freight services businesses. This initiative aims to broaden business prospects for customers through more than six projects, enhancing the capacity to deliver transportation services in a more comprehensive and integrated manner. For instance, the launch of YJC Depot Container, the second container depot service and the addition of LEO Self Storage at China Town and Rama IV branches. Launching LEO Sourcing & Supply Chain (LSSC), an agency company to procure high-quality goods from Thailand and deliver them to buyers in China. Moreover, additional rail transport services for domestic and cross-border, LaneXang Express services end-to-end rail freight service to China and Laos. Thailand’s first intelligent temperature-controlled warehouse service name: The 1st Intelligent & Robotic Cold Chain Bonded Warehouse/Logistics Center in Bangkok at Sahathai Port, the opening of Advantis LEO (Thailand) Limited, which provides integrated logistics and warehouse services, which is a joint investment between LEO and Hayleys Advantis Limited, a subsidiary of Hayleys PLC., Sri Lanka. The company expects that all of the projects mentioned above will continuously create growth and sales for the company in the future. In 2024, LEO Global Logistics Company plans to expand and continue operations under the F.A.S.T’24 strategy to emphasize its agility and speed in preparing to deal with challenges in the logistics industry.

Mr. Kettivit Sittisoontornwong, Chief Executive Officer of LEO, said, “The company was planned to run a business under the F.A.S.T’24 strategy to align with the ever-changing challenges of business, it is necessary to adapt the work plan to be more agile and efficient. However, the outcomes of operations will still adhere to the established goals, focusing on ongoing and new business development. This approach aims to expand the customer base and broaden the scope of services.”

Going F.A.S.T’24

The F.A.S.T’24 concept can be described as follows: ‘F’ means Focus on Sales Growth because the company has set goals for expanding new services and businesses to grow by more than 15-20 percent in the next year. It offers cross-border freight transport services Thailand-China, rail transport services via the high-speed rail route Laos-China, and cross-border transport Thailand-Cambodia, as well as joint investments with new business partners. For example, building an Intelligent Cold Chain Logistics Center and opening a third LEO Self Storage area, Rama IV branch. Plus, the opening of Advantis LEO Thailand Limited in the fourth quarter of 2023.

‘A’ is defined as an Agile Organization, LEO’s reorganization alongside implementing technology to enhance work processes for increased flexibility. Restructuring the sales team to improve efficiency in delivering superior customer service and encouraging the participation of the new generation of employees in creating and developing activities that enhance the organization’s image. This is being done to support the company’s growth, expand the customer base, and offer a broader range of services.

The letter ‘S’ stands for Sustainability & Superb Business Mode due to global warming. This makes the trend of conducting business with ESG concepts widespread. In the same way, LEO Global Logistics is committed to focusing on sustainability-related activities and services and green logistics operations, including using Carbon Credit and Carbon footprint requirements and introducing IT technology and Green Digital. The company aims to create a competitive advantage in ESG matters for customers. In addition, LEO has partnered with companies that provide digital platform services that can meet customers’ needs directly.

The last ‘T’ represents Terrific Performance. It signifies LEO Global Logistics’ commitment to achieving excellent results in 2024.

Customer Extension

With the continuous growth of the logistics business, adapting to market situations and constantly evolving competitive conditions remains one of the fundamental principles of LEO Global Logistics management. Consequently, the company have strategized to broaden growth opportunities by extending services to new trade routes, including India, the United Arab Emirates, and Saudi Arabia. This expansion also encompasses exploring new economic prospects in regions like Central Asia, such as Kazakhstan, leveraging the expertise of a team with experience and professionalism to ensure exemplary customer service.

Mr. Sittisoontornwong explains the customer expansion plan: “LEO Global Logistics has devised a plan to broaden the customer base for the sales team. Furthermore, monitoring the increase in customers and the volume of services LEO provides occurs quarterly. In 2024, the company intends to conduct training for the ‘LEO Sales Model’ program—a developmental initiative for the sales department aimed at enhancing the skills and techniques of the sales team, enabling them to effectively convey and recommend LEO Global Logistics services. Anticipated outcomes include a more diversified customer base, providing advantages for the sales team in comprehending customer needs and adhering to standardized processes for presenting products or services, thus maximizing customer satisfaction. Additionally, this plan fosters employee engagement in creating activities that can contribute to the company’s overall advantage.”

Logistics Digitalization

The trend of globalization is constantly changing, resulting in various technologies and rapid development. In the same way, the lion of the logistics industry, LEO Global Logistics, never stops developing itself to keep up with changes in global trends. The company has introduced new technologies and innovations to enhance operations and cater to customers, encompassing existing services and planned launches of new businesses.

LEO Global Logistics has implemented intelligent technology to track product transportation management and warehouse operations. This includes integrating information technology and other technological advancements to enhance work efficiency and ensure data accuracy. For instance, using Salesforce programs streamlines work processes, enabling the prompt and precise delivery of services to customers. The company has also entered into a joint venture with Zupport, a technology startup in the logistics industry, to develop a new technology platform for importers. This collaboration aims to boost the efficiency of import services, ensuring accuracy and speed. Customers can closely monitor each process step, providing convenience and instilling confidence in both customers and the company’s overseas management agents.

In addition, Mr. Sittisoontornwong also provided additional information about the company’s Superb Business Model policy: “To foster the integration of technology in the logistics industry, LEO has initiated a temperature-controlled warehouse project incorporating an intelligent system with robots (Automation & Robot) within the bonded warehouse area at Sahathai Port. This project is groundbreaking as the first of its kind in Thailand, with the primary objective of addressing labor shortages. Additionally, there are plans to seek investment support from the Board of Investment (BOI), which offers incentives for investments in the robotics and automation industry, providing tax benefits to pioneers in these technologies. Furthermore, LEO aspires to transform this innovative temperature-controlled warehouse into a green logistics operations center. This involves harnessing solar energy for electricity and implementing a management service system to reduce carbon dioxide emissions—an essential initiative to combat global warming.

Sustainable and Green Logistics

There is a growing interest in sustainable logistics concepts in the current logistics industry. LEO Global Logistics is another service provider that acknowledges the significance of efficiently utilizing resources and reducing environmental impact through various initiatives.

In 2023, the company promoted transportation and warehouse management under the banner of sustainable and green logistics. This involved the installation of a solar rooftop, which is considered a new alternative energy. In addition, the company has spearheaded technology integration to facilitate communication and workflow between departments, aiming to diminish paper usage and enhance information tracking within the workplace. Moreover, LEO also cooperates with business partners to enhance the efficiency of environmentally friendly transportation processes, utilizing electric vehicle (EV) trucks to reduce greenhouse gas emissions.

“LEO thinks that green transportation can lead to new business opportunities while enhancing the potential of existing businesses. LEO is a fully integrated logistics service provider and the first Thai logistics service provider to announce a business development plan to provide services in green Logistics, with a determined aim that the company’s green logistics services can be converted into Carbon Credits for customers who come to use the service with LEO. The company hopes that our services will give our customers a competitive advantage and has been accepted in conducting business at the international level, especially in Europe or Japan, which places importance on ESG and reducing Carbon Footprint. The company plans to cooperate with partners to provide environmentally friendly transportation and distribution services using electric vehicles (EVs) to reduce exhaust gas emissions, greenhouse gases, and environmental pollution,” Mr. Sittisunthornwong said.

“All the reasons mentioned above reflect our efforts to develop and deliver the most efficient logistics services for our customers. We also aim to operate our services in a sustainable and environmentally friendly way with the F.A.S.T’24 concept and become Thailand’s leading integrated logistics service company,” he concluded.

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