Panasonic Siew Sales (Thailand) - TNSC

Company Profile
Panasonic Siew Sales (Thailand) Co., Ltd.
Logistics Department
Presented by Mr. Cherdchai Siriya ( Outbound Logistics Manager )

PST
Thailand
Company Profile
Company :
Name
Panasonic Siew Sales
(Thailand) Co., Ltd.
Establish : 20 April 1970.
(Siew-National Sales & Service Co., Ltd.)
Location :
75 Seri Thai Road
Kannayao
Bangkok
Thailand 10230
Chairman : Ms. Maevadi Navapan
MD : Mr. Hirotaka Murakami
Business : Audio Visual / System / Battery /
Lighting products sales

About “Outbound Logistics”
Logistics
Department
Responsibility
Inbound
Logistics
Route Arrangement
Picking Products
Outbound
Logistics
PST
Reverse
Logistics
Support
Logistics
Warehouse
Panasonic
Checking Process
Loading Products
Shipping Control
THAILAND

Target of Panasonic group in year 2009 is to reduce Co2
Three hundred thousands (300,000) a ton

Transportation Problems
• 1. Transport cost is higher than the
given budget.
• 2. Trip base style is not suitable for
unfull truck load.
• 3. Customers are not happy for late
delivery.

PST
Thailand
Example of trip-based style
Full cargo
Chaingmai
Less than truck load
Transport cost 20,000 B.

Transportation Problems
• 4. For full truck load, there are some
small products with low value which
need to be delivered in the remote area.
• 5. Problem of fail delivery as the
company has to wait until the truck is
fully load to save cost.
• 6. Request for urgent delivery and
bringing back of goods for repairing from
salesman and service department.

Example of trip based transportation
Budget = 0.7% of sale
Value = 120,000 B.
Delivery at Sirisin Shop
Surattanee Province
Transportation Cost = 6,826 B.
Percentage of Transportation
Cost = 5.68%
Should the company defer the delivery..for cost-effectiveness
Day 2
1 day delay
Air..
expensiv
e
Day 1
Supply-Side point of view does not respond to Demand-Side

เนื่องจากการสั่งสินคาของลูกคาเปลี่ยนไป มีจํานวนสินคาไมมากในการสงแตละเที่ยว จึงสงผลทําใหคาขนสงสูงขึ้น
Improvement Plan Proposal
Build up innovative distribution
system to ensure velocity,
accuracy, efficiency and more
responsive service.

TARGET
To improve management and to
achieve 100% efficiency in
transport cost control by taking
into consideration the interest of
the company and customer ‘s
satisfaction.

ACTION PLAN
Implementation Measures AUG. SEP. OCT. NOV DEC.
1. Plan
- Submit improvement plan to decision maker level.
- Consult with Departmen tManageron the plan and its processes.
2. Do
- Find transport service company which runs LTL system
- Meet with Salel Department to explain about the plan.
- Meet with ICD. Department to inform them about "Email"
- Improve formatof P-run report
- Value chain management network for LTL system in all area.
- Start implementation.
3. Check & Improve
- Record and compare transport cost after the implementation
of project
- Analyse & improve
4. Implementation Evalution
- Compare transportaion cost and service level before & after
the project implemenatation.

SOLUTION
PROBLEM
High Transportation Cost
Problems 1.There is a small volume of goods , less than truck load, to be
delivered in the provinces everyday. It is not cost effective.
Causes
1. Customers do not keep stock, they order in a small
volume.
2. Customers would like to have goods urgently but in smal
the company needs to serve the customers.
Solution 1. Looking for a transportation
company which runs LTL for delivering
goods with small volume.
To reduce air in the truck.
Look for a transport company with LTL system

Example of items of goods to be delivered in the south
(before improvement)
Customer _Name
Model
Qty
Volume
Value
Route
Transport_C
Future AV.
Makro Office
Future AV.
Vishusin
Kovitpanit
U&L
Needs … 2 Pickup
TC-29GX50B 2 0.7
KX-FP342CX 20 0.8
KX-T2371MXW 70 1.45
Total 72 2.95
19,758
TC-21GX50B 3 0.6 14,160
TC-29GX50B 2 0.7 19,758
KX-FT931CX-B 60 1.8 201,000
Krabi-Pang-Phu
83,800
37,500
6.17%
141,058 B.
Satul-Songkla
Total 65 3.1 234,918 B.
5.18 %
Value Total
375,976 B.
Total Transport Cost = 20,892 B.
Percentage of Transportation Cost =5.55 %
8,713
12,179

Example of items of goods to be delivered in the south
(after improvement)
Customer _Name
Model
Qty
Volume
Value
Route
Transport_C
Future AV.
Makro Office
Future AV.
Vishusin
Kovitpanit
U&L
TC-29GX50B 2 0.7
KX-FP342CX 20 0.8
KX-T2371MXW 70 1.45
Total 72 2.95
19,758
83,800
37,500
141,058 B.
TC-21GX50B 3 0.6 14,160
TC-29GX50B 2 0.7 19,758
KX-FT931CX-B 60 1.8 201,000
Krabi, Pang, Phu
Satul-Songkla
Transport
Total 65 3.1 234,918 B.
2,330.50B.
2,759 B.
5,089 B.
Value Total = 375,976 บาท
Uses LTL system
Percentage of Transportation Cost 1.35 %

Comparison between the old and the
new system.
Old System
Value = 375,976 B.
New System
Transportation Cost = 20,892 B.
Transportation Cost= 5,089 B.
Percentage of Transportation Cost= 5.55 %
Percentage of Transportation Cost 1.35 %
Saving cost = 15,803 B.
Air is
dear.
Percentage of reduced cost = 4.20 %

2. Internal Consolidation
Consolidation of goods between PST & TMB
warehouses.
Processes
rehouse at TMB. check if there are
goods which can share space.
PST
OL. at PST.received the call
and check their route.
TMB
PST
TMB
PST
PST. Check the route.
PST
Truck sends goods at PST.
Goods from PST and TMB share the same truck, Panasonic does not
have to pay more.

SOLUTION
PROBLEMs
Higher transportation Cost
Problem2. In case of full truck load, but the truck has to go to the remote
province to deliver the smallest good with cheapest price.
Cause Not enough data on transportation route for goods delivery,
staff cannot cope with the expense which is not cost effective.
Solution 1. To improve the “P-run
Report” to show the province and all
customer codes.
2. Separate small volume for remote
provinces to be delivered by LTL system

Overcome
Panasonic Siew Sales ( Thailand ) Co. Ltd.
Problems
P-run Pre-run Report Peport คือรายงานใชวางแผนการสง และการกําหนดใชรถสงสินคา
VEH TYPE INVOICE DATE ORDER CUST NAME VOLUME AREA S_NAME
15-0110 6WB 500805594 12-ส.ค.-07 10050011 03N00376 บจ.สงวนพาณิชย 9.153 สตูล-สงขลา-ยะลา-ปตตานี-นราธิว
500805579
Old
12-ส.ค.-07
system
10050015 03N00341 บจ.สินสวาง เซลส 5.342 สตูล-สงขลา-ยะลา-ปตตานี-นราธิว
500805583 12-ส.ค.-07 10050013 03N00348 บจ.วิชุกร 0.181 สตูล-สงขลา-ยะลา-ปตตานี-นราธิว
Not 500805588 show 12-ส.ค.-07 Province, 10050019 districts 03N00341 บจ.สินสวาง and เซลส 12.512 สตูล-สงขลา-ยะลา-ปตตานี-นราธิว
500805586 names 12-ส.ค.-07 ofcustomers
10050022 03N00454 สยามแม็คโคร 1.954 สตูล-สงขลา-ยะลา-ปตตานี-นราธิว
TATAL COUNT 5 29.142
11-0111 6WB 500805597 12-ส.ค.-07 10050024 03N00328 บจ.สิริสินเทรดดิง 0.153 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805591 12-ส.ค.-07 10050034 03N00798 บจ.มิคเซนแอพพลิเคช 0.142 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805599 12-ส.ค.-07 10050026 03N00328 บจ.สิริสินเทรดดิ้ง 12.181 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805577 12-ส.ค.-07 10050022 03N00328 บจ.สิริสินเทรดดิ้ง 0.153 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805575 12-ส.ค.-07 10050014 03N00454 บมจ.สยามแม็คโคร 2.342 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
ไมแนใจวา แตละรานอยูในจังหวัดใด กรณีที่มี Volume นอย
500805573 12-ส.ค.-07 10050016 03N00454 บมจ.สยามแม็คโคร 0.181 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805596 12-ส.ค.-07 10050010 03N00454 บมจ.สยามแม็คโคร 12.512 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
500805593 12-ส.ค.-07 10050031 03N00454 บมจ.สยามแม็คโคร 1.954 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
TATAL COUNT 8 29.815

Panasonic Siew Sales ( Thailand ) Co. Ltd.
Pre-run Peport
Sovle the1st problem
P-run Report
VEH TYPE INVOICE DATE ORDER VOLUME CUST NAME AREA S_NAME
S 12 11 สตูล-สงขลา-ยะลา-ปตตานี-นราธิวาส
15-0110 6WB 500805594 12-ส.ค.-07 10050011 9.153 03N00376 บจ.สงวนพาณิชย อ.เมืองสงขลา จ.สงขลา
500805579 New 12-ส.ค.-07 System 10050015 5.342 03N00341 บจ.สินสวาง เซลส อ.เมืองสงขลา จ.สงขลา
500805583 12-ส.ค.-07 10050013 0.181 03N00348 บจ.วิชุกร อ.สุไหงโก-ลก จ.นราธิวาส
Details
500805588
of districts,
12-ส.ค.-07
and provinces
10050019 12.512 03N00341 บจ.สินสวาง เซลส อ.เมืองสงขลา จ.สงขลา
500805586 12-ส.ค.-07 10050022 1.954 03N00454 สยามแม็คโคร อ.เมืองสงขลา จ.สงขลา
TOTAL COUNT 5 29.142
S 11 11 สุราษฎฯ-นครศรีฯ-ตรัง-พัทลุง
11-0111 6WB 500805597 12-ส.ค.-07 10050024 0.153 03N00328 บจ.สิริสินเทรดดิง อ.เมือง จ.สุราษฎรธานี
500805591 12-ส.ค.-07 10050034 0.142 03N00798 บจ.มิคเซนแอพพลิเคชั่นอ.เมือง จ.ตรัง
500805599 12-ส.ค.-07 10050026 12.181 03N00328 บจ.สิริสินเทรดดิ ้ง อ.เมือง จ.สุราษฎรธานี
500805577 12-ส.ค.-07 10050022 0.153 03N00328 บจ.สิริสินเทรดดิ ้ง อ.เมือง จ.สุราษฎรธานี
500805575 12-ส.ค.-07 10050014 2.342 03N00454 บมจ.สยามแม็คโคร อ.เมือง จ.สุราษฎรธานี
500805573 12-ส.ค.-07 10050016 0.181 03N00454 บมจ.สยามแม็คโคร อ.เมือง จ.สุราษฎรธานี
500805596 12-ส.ค.-07 10050010 12.512 03N00454 บมจ.สยามแม็คโคร อ.เมือง จ.สุราษฎรธานี
500805593 12-ส.ค.-07 10050031 1.954 03N00454 บมจ.สยามแม็คโคร อ.เมือง จ.สุราษฎรธานี
TOTAL COUNT 5 29.815 สามารถแยกรานคาที่ตองสงสินคาตัวเล็กราคาถูก ในจังหวัดไกลสุด ไดสะดวกงายขึ้น

Example shows how to solve the 2 nd problem in case of delivery of a small
volume of goods in remote provicnce.
Delivery by LTL
Cost is 85 baht
National / Panasonic
Mission Shop,
Trang Prov.
สินคาในรถคันนี้ 98%จะกระจายสงสินคาสงใหลูกคาในจังหวัดสุราษ
Surathani
Transportation Route= Surat, Nakorn, Trang, Patthalung
To deliver to Suratthani, the cost is = 14,554Bht.
Small Volume
Fax = 1
Telephone = 5
To deliver to Trang, the cost is = 18,713 Bht
Different 4,159 Bht.
Save cost= 4,079 Bht.

SOLUTION
PROBLEM
• Problem 3. Different problems occur everyday such as sales
and customers follow up their goods, more fail delivery etc.
Cause . Without clear data of delivery in P-RUN and
late communication from sales or parties concerned.
To solve the problem Hold meeting
with sale department for adding
period of delivery and requiring
details of customers in the P-Run

1. Set delivery date 2. Special requirement for each good

SOLUTION
PROBLEM
Problem 4. In case of “urgent pick up and delivery” order from
sale dept. and repair goods from service dept. in down south,
north, northeast and central parts.
Cause There is no company truck running on that route, but
the company set as its policy to pick up and receive the
repaired goods within 3 days, it is necessary to do it to serve
the customers.
To solve the problem Build up network in pick up and
delivery with LTL companies throughout the country to
respond to customers need in case the company does not run
on some routes, company can use its network to do its work.

The picture shows the pick up and delivery network using
LTL system throughout the country
LTL Network system
บ. AAA
North-E = D+1,2
บ. BBB
Panasonic
Central & North
= D+1,2
บ. CCC
South D+1,3
KPI
Central = D +1
Northern = D + 2
North- E = D + 2
Southern = D+3

Process
Urgent order from
customer /sale dept.
Panasonic
KPI
Outbound Logistics
Contact network center to have
an urgent pick up goods อําพักฟ
Central = D +1
Northern = D + 2
North- E = D + 2
Southern = D+2

Example of Old System = Marketing Dept. asked to pick up goods at
the Best Shop in Chanthaburi Province for using in a Convention
Urgently.! But the company has no truck running on that route
today.
Receive order to pick up 2sets of LCD
at the Best shop in Chanthaburi Provimce.
Air in the
Truck is
expensive.
If the comp sends its truck
to pick up those goods, it will cost
3,656 Bht.per trip.
New System Contact
its network centre to pick
up the goods, the company
pays only 218
= 218 Bht-3,656 Bht.
Save = 3,438 Bht.

utcomes after introduction of the new system
ไดทําการเก็บขอมูล 3 เดือน โดยเปรียบเทียบ แบบใหม และแบบเกา และคาขนสงที่ลดได
Sale /
Transport_C
Percent of Tra.
Cost-Saving
Bht.
Month
Old
New
Old
New
Sep.
7,462,250.15
6,749,253
0.86% 0.78%
712,997.15
864,810,852
Oct.
890,675,098
7,934,483.95
7,353,866
0.89% 0.83%
580,617.95
Nov
8,108,827.20
7,363,772
0.87% 0.79%
745,055.20
933,193,797
Total 3
Months
2,688,679,747
23,505,561 21,466,891 0.87% 0.80% 2,038,670.30

Implementation Outcomes
Before
- Have to wait until the truck is
fully loaded in each trip for
cost effectiveness.
- Higher transportation cost due
to the lack of delivery
management system and
improvement.
- Lack of coordination between
Logistics Dept. and Marketing
Dept.
- Often being claimed by
salesman or customers.
- Emission Co2 without any
control.
After
• No need to wait for full truck
load, can deliver goods
everywhere, every day
according to the need of
customers.
• Can control transportation
cost and optimize the benefit
for the company and
customers.
• Work in team, flow of
communication, effective
delivery, goods are delivered
at the right place, the right
time.
• Efficient delivery meets the
need of customers, create
customer satisfactory.
• Able to control Co2 emission.

PST
Thailand
Reduction of Inland Transportation Cost ( Wasteful )
by LTL Management
Logistics
Approach : To improve merchandises loading & delivery management process
Cherdchai S.
Before
Standard Review
Delivery
Expenses
After
ASOM
Saving Launch:
04/2008
AV & System products delivery by trip base
Full implementation of LTL management
B&A Chart
Loose cargo
20,000 Baht/Trip
Full cargo
Delayed Delivery
Uneconomical
Operation
Mixed cargo
Why do we let these wasteful factors
continue without elimination
New Vendors
Mitrsumpun…etc
Saving
2 MB
Small volume
separation
The theme has been broaden to affiliated Cos.
PAT, PASAP, PTHC, PEDTH, PBTH, PEWTH, PEW-AY, PMT & PRDT
CO 2 Emission :
1,074 Ton/Yr
Previous Cost :JPY 255.7 M/Yr
(FY2007 Cost 83,627 K Baht/Yr)
CO 2 Reduction :
22 Ton/Yr
Expected Reduction : JPY 6.8 M/Yr
(2,214 K Baht/Yr 100 JPY = 32.7Baht)

Set up Working Standards
• 1. If the volume of delivery are between 01m3 to
17m3, use LTL service.
• 2. If the volume of delivery is full truck load, but
there are some small volume with low price to be
delivered in the remote province, use LTL service.
• 3. If there is order to pick up or deliver goods in the
route where there is no company truck running, use
LTL service.

PST
Thailand
Thank you very much