Durbell aims to be Thailand’s largest fast-moving consumer goods distribution service in three years

• Invests Bht 2,000 million in technology, branches, and sales teams, as well as in online capabilities and vending machines in line with evolving consumer and retailer needs       
• Aims to be full-service distribution specialist
• To increase distribution of non-TCP brands to 60% of total sales
• Targets Bht 30,000 million in sales by 2022  

Durbell Co., Ltd., a TCP Group company and one of Thailand’s leading consumer goods distributors with more than 17 years of experience, today, unveiled a 3-year business plan to make Durbell Thailand’s largest fast-moving consumer goods distributors with sales of Bht 30,000 million, 60% of which will be generated by non-TCP Group brands.  Under the plan, Durbell will invest Bht 2,000 million in technology, expansion of distribution centres and sales teams, and the introduction of new online and offline distribution channels.

The investment in new technology will create world-class sales capabilities, management information systems, as well as efficient logistics and inventory management.  The expansion of distribution centres will include the creation of new sub-distribution branches and sales teams to enhance the servicing of new product categories and customers.  And the introduction of new channels will include superior online capabilities as well as vending machines to increase distribution outreach.

 

Mr. Saravoot Yoovidhya, TCP Group’s Chief Executive Officer, said, “The 3-year plan for Durbell supports TCP’s vision to be among Thailand’s most admired corporations and to triple TCP’s sales to Bht 100,000 million by 2022.  It also serves to take Durbell to the next level as a specialist in consumer goods distribution with the ability to offer its trading partners comprehensive advice and service covering all sales channels, right from production to distribution, in sales and marketing strategy, as well as provide our trading partners high performance sales teams.”

Mr. Surachai Chonglertvarawong, Managing Director of Durbell Co., Ltd., said, “We are building on a long track-record of success and a solid infrastructure that already generated over Bht 17,000 million in sales in 2018.  Our additional investments will further lift our capabilities and we aim to almost double our sales to Bht 30,000 million in three years.”

He cited the following data-points to indicate the company’s existing, strong capabilities:

• 140,000 stores – The number of outlets, nationwide, serviced by Durbell, including modern trade, wholesale, convenience, and traditional mom-and-pop stores.
• 24 sub-distribution branches – With the broadest national distribution network, it takes only two days for Durbell to have products on shelves, nationwide – the shortest time of any in the industry.
• Over 300 delivery trucks and 600 mobile sales teams, and 2,200 sales and support staff – Their discipline, experience, and understanding of customer needs in each locality has earned Durbell the trust of store and brand owners.
• Constantly growing proportion of non-TCP brands – In addition to distributing TCP Group products, Durbell is also the distribution partners for many brands, of all sizes, including Brands, Ovaltine, Jele, Magic Farm, Bento, Kopiko, Beng Beng, Blink, and Vitaday, among others.  Non-TCP trading partners account for nearly 40% of the current total sales of Durbell.

Full use of technology to increase efficiency for trading partners

Durbell will use its resources to ensure that it can fully leverage the disruption being caused in the industry by new technology to its advantage.  It is also adjusting its corporate structure and human resources to work in the new environment, as well as to be able to serve a greater number of trading partners.

The company is investing in a range of technology systems with an emphasis on sales and distribution management systems, warehouse management systems, business intelligence systems and customer relationship management systems.

“Our new systems will give a huge boost to the efficiency of our warehouse management.  They will reduce waste and loss of sales opportunities by ensuring availability of the right product at the right place and at the right time.  We will also get much better market feedback from individual localities to ensure we are always able to meet rapidly changing needs of customers and consumers by analyzing market trends, as well as use customer and store profiles for long-term relationship and campaign management.  It will help our customers plan their marketing strategies with greater efficiency and effectiveness,” Mr. Surachai said.

Expanding branches and Distribution Centers, increasing sales teams, enhancing salesforce capabilities to support new customers

He added, “We plan to add another major distribution centre and five sub-distribution branches in high-potential provinces, reaching a total of 30 sub-distribution branches.  We will also add 200 more sales trucks and at least 400 sales staff.  Durbell will be among the very operators in this industry to offer such wide national coverage.”

According to Mr. Surachai, Durbell has more than 40 very highly experienced senior managers in addition to a new generation of executives who are being recruited to ensure high capability at every level of the organisation.

Adding sales channels: online, vending machines and overseas markets

 Under the development plan, new sales channels are also being opened, such as greater use of vending machines and online channels. 

“Retailing via online and vending machines is showing strong growth with even higher potential in the future.  Our customers are also increasingly emphasizing these channels.  The vending machines are becoming increasingly relevant in an environment where physical stores are becoming more expensive to operate because of higher land and rental costs as well as rising staff wages.  Vending machines allow people to distribute with a much lower upfront costs,” Mr. Surachai said.

He said that Durbell is also leveraging TCP Group’s overseas network to provide distribution channels for trading partners aiming to sell their products overseas, as well as assist overseas trading partners who wish to sell their products in Thailand.

Mr. Surachai said, “Durbell will go beyond being an excellent distribution partner to also being a partner to our customers that can offer advice and precise solutions to their sales and distribution needs by leveraging big data.  Our people, financial strength, massive nationwide distribution network, and the synergies with TCP Group’s businesses partners both inside and outside of Thailand, all come together to provide an unmatched service offering to Durbell’s customers.”