Saturday, May 05, 2012

Century Logistics eyes regional tie-up with PepsiCo

Century Logistics eyes regional tie-up with PepsiCo 2012/05/05 For a start, PepsiCo, the food division of Pepsi-Cola (Thai) Trading Co Ltd, had invited Century Logistics to be a strategic partner in the latter's supply chain management in Thailand. AYUTTHAYA: Century Logistics Holdings Bhd is eyeing more cooperation with world's largest snack food company PepsiCo in the Asia-Pacific region, after successfully leasing its warehouse facility in Thailand to the latter. Its deputy managing director Dr Mohamed Amin Kassim said for a start, PepsiCo, the food division of Pepsi-Cola (Thai) Trading Co Ltd, had invited Century Logistics to be a strategic partner in the latter's supply chain management in Thailand. It all began when its wholly-owned subsidiary, Century Resources (Thailand) Ltd, in September last year secured a RM7.6 million contract from PepsiCo for the use of the former's state-of-the-art warehouse facility at the Rojana Industrial Park here. The contract was for two years initially, during which PepsiCo would use the warehouse as its main distribution centre country-wide. "Our company did not merely lease the warehouse to PepsiCo, but also help it solve its supply chain management, prompting it to invite us to be its strategic partner in strategic planning for supply chain management in the Thailand market," Mohamed Amin said. He said the actual physical supply chain would be provided by existing local players as Century Resources would be involved only in strategic planning. "For example, if they (PepsiCo) have problems to hit certain target areas, we will draw a plan and solution for them," he said. PepsiCo has already asked Century Resources to build another warehouse as it wants to expand its distribution centre in the country, and the subsidiary company is studying the matter. Century Resources established its presence in Thailand in 2005, with the inception of a third-party logistics contract from Nestle. In 2009, it invested a RM3.5 million in its own warehousing facility here, in line with its regional growth strategy. Mohamed Amin said since Thailand was PepsiCo's distribution centre for Asia Pacific, Century Resources was eyeing to be its partner in strategic planning for its supply chain management for the region. Century Logistics is Malaysia's leading provider of value-added supply chain solutions and total logistics services. Besides Malaysia and Thailand, the company also operates in China, Singapore, India, Sri Lanka and Dubai, he said. Bernama