Writer: SUCHIT LEESA-NGUNANSUK

Published: 21/01/2009 at 12:00 AM

Newspaper section: Database



A Thai company is offering advanced technologies to help users increase the
efficiency of their logistics network and is looking to build a trusted community of logistics users and providers. DX Innovation's managing director Wichit Saiklao explained that at present, Thailand wastes around a billion baht a year in logistic expenses due to empty trucks running around the country.



With this in mind, the company received an 800,000 baht research grant from the National Innovation Agency (NIA) and has launched www.dxplace.com, an online market place for logistics providers.



The web site allows many logistics service providers to post details of space in their trucks, times, destinations and availability. Companies who want to ship their goods can then book services to match their requirements.



This will help companies reduce their logistics costs as they will get a better price due to competition between different logistics providers. At the same time, this marketplace opens up new sources of revenue for the smaller logistics providers to compete and expand coverage and with a new customer base.



The site was run in pilot for three months. Today there are more than 1,000
logistics providers in the database. Wichit admits that the number of customers is still lower than he would like, but he hopes it will rise with government help from the Ministry of Commerce and Ministry of Industry.



By the middle of this year, the service will include a rating function that allows both the logistics providers and companies to rate the quality of service they have received in order to create a trusted environment.



Later, the company plans to develop a display terminal that can be used in a car or truck to show job assignment details such as destination, product and delivery time. This information will be updated automatically and customers will also know when the truck has reached its destination. Real-time traffic information will also be added so that drivers may select better routes.



"I hope this web site can be an 'eBay' for Thailand's logistic service which will allow business auctions to select the lowest price from many logistics service providers," Wichit said.



The concept is not new, having been around since 2002, but today's affordable and readily available technology, especially GPS and increasing Internet penetration will help drive widespread adoption. He projected that if 20% of logistics service providers turn to this type of electronic channel, there will be a critical mass for the project to succeed.



DX already has plans to expand into other countries in the Indo-China region.