Executive Logistics and Supply Chain Management MSc study tour 2018: visit to CPF Distribution Center (Bangnampriao)
10/05/2018
CPF are the third largest conglomerate within Thailand. Privately owned, they focus on key areas such as:
- Agriculture
- Communications
- Automotive
- Pharmaceuticals (nano tech)
- Food (including fruits as well as meat)
- Livestock (including feed)
- Research and Development
Before arrival it was fair to say that assumptions had been made about operations in a Thailand DC. As labour is so cheap, we expected a large manual operation when in actuality the DC is very technologically advanced. After two years of project planning and a further 18 months of construction they have now been fully operational for four years.
CP decided to invest in a centralised DC which takes in deliveries from 16 factories (food-based) instead of those operating individually. With a year on year growth rate of 10% the ROI was estimated to be 7.5 years and their increased capacity of 11,000 pallet locations would also allow third-party warehouse management also.
With stock picking accuracy of 99.99% the AS/RS operation has been credited as the best investment CP could have made. The automation ultimately reduces human touch points which allows resistance to damage, contamination and helps with mitigating risks. The DC operates 24/7 without the need for any employees to visit the -25C AS/RS zone at all.
Their full picking and packing operations extend the chilling areas, frozen areas and ambient temperatures ranges throughout the DC. Beyond this all their fleet (part owned, part hired through 3PLs) are fully refrigerated and remote real-time monitoring is possible through their black box. All the way from loading by their 18 docking stations, their system allows reactive and predictive decisions to be made to ensure the integrity of the product remains throughout the supply chain to their customers.
CP are not only investing in their own infrastructure but they have a wide array of CSR activities that they were proud to show off including:
- Scholarships
- Building schools
- Sports centers
- Providing medical equipment in Thailand and overseas
It was pleasure to spend some time with this well-established company, Denyse in particular is now the group expert of CP and their operations – answering questions on their behalf whether they like it or not!
This blog was written by Kristin, Harry, Mauricio and Chris.
Categories & Tags:
Leave a comment on this post:
You might also like…
My Apprenticeship Journey – Broadening Horizons
Laura, Senior Systems Engineer at a leading aircraft manufacturing company, joined Cranfield on the Systems Engineering Master’s Apprenticeship after initially considering taking a year off from her role to complete an MSc. Apprenticeship over MSc? ...
The Library app is back!
The Library app is back! It's exactly the same as before (although it will get a fresh look in a few months) and if you hadn't removed it from an existing device it should just ...
PhD researcher at the IF Oxford Science and Ideas Festival
IF Oxford is a science and ideas Festival packed with inspiring, entertaining and immersive events for people all ages. PhD researcher, Zahra attended the festival. Here she shares what motivated her to get involved. ...
What leadership skills are required to meet the demands of digitalisation?
Digital ecosystems are shifting the dynamics of the world as we know it. With digitalisation being a norm in the software industry, there is currently a rapid rise in its translation ...
My PhD experience within the Centre for Air Transport at Cranfield University
Mengyuan began her PhD in the Centre for Air Transport in October 2022. She recently shared what she is working on and how she has found studying at Cranfield University so ...
In the tyre tracks of the Edwardian geologists
In April 1905 a group of amateur geologists loaded their cumbersome bicycles on to a north-bound train at a London rail station and set off for Bedfordshire on a field excursion. In March 2024 a ...