As the floods continue to worsen in vast areas of Thailand, major retailers have changed their distribution and logistics operations to avoid shortages of key commodities.
The 7-Eleven convenience store chain has opened 100 small distribution centres across Bangkok’s shophouses..
In Bangkok and neighbouring areas, 7-Eleven temporarily closed more than 300 stores including its branch in Lam Luk Ka in Pathum Thani, Thon Buri, Nong Chok, Lat Krabang and Min Buri.
“Our two major distribution centres in the Central region, at Bang Bua Thong and Suvarnabhumi, have been closed because of the flood, which has blocked all transport routes in and out of the centres,” said Suwit Kingkaew, senior VP of CP All, operator of 7-Eleven convenience stores.
The massive flooding has damaged some of 7-Eleven’s plants causing shortage of necessary goods. To replace that, Kingkaew said that the company is looking for new suppliers of necessary goods.
Tesco Lotus, another major retailer, has also adapted temporary measures to prevent goods shortage.
It opened a warehouse at Bitec Bang Na to supply its more than 900 stores across the country. Executives working at the head office in Nawamin Rd which has temporarily closed have moved to the temporary warehouse at Bitec while its 1500 office staff were allowed to do their work at home.
“During this crisis, the company will use this temporary centre to process up to 500,000 cases of products a day next week, up from the current daily capacity of about 300,000 cases,” said operations director James Scott.
The company has also serviced the exhibition hall of Bangkok International Trade and Exhibition Centre for storing basic commodities like canned fish, water and instant noodles. It will occupy the exhibition hall for 20 days while it repairs the severely damaged distribution centres at Nonthaburi’s Bang Bua Thong and Ayutthaya’s Wang Noi.
Emergency hubs where diverse mode of transportation like trucks and planes are on stand-by have been set up by the company in Surat Thani, Lamphun, Khon Kaen and Chiang Mai.
According to Big C Supercenter director of corporate affairs Kudatara Nagaviroj, Tesco Lotus has temporarily closed four hypermarkets located in Rangsit, Nava Nakorn, Klong 3 in Pathum Thani and Bangyai.
“The massive flood has caused a temporary closure of our major distribution centre in Wang Noi, which is now in the process of restoration. About 30 containers of products were retrieved from our centre in Wang Noi over the weekend, and the company will continue to retrieve more containers from the distribution centre,” Nagaviroj said.
Nagaviroj said that the company has set up distribution centres and cross-docking sites in Hemaraj Industrial Complex, Chon Buri and in Bang Pakong, Chachoengsao which will be responsible for distributing products among Tesco Lotus stores in Thailand.
The massive flooding also caused Central Food Retail to close 25 Tops supermarkets across Bangkok and outskirts.
Like other companies struggling to sustain distribution, Central Food Retail used its central distribution centre located at Hemaraj Industrial Complex in Chon Buri. The company also made use of DHL service for product distribution in the country.
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