New Plastic Pallets a Hit in Chinese Market

issue 10
Your Pooling Solutions Partner
New Plastic Pallets a Hit
in Chinese Market
China Yonghui Surges Ahead with Loscam' s Support
Thailand Ichitan Pioneering Automated Warehouse Solutions
Fresh Produce Food Safety

MD Speak
Mr. Sirin Limpaitoon, Managing Director - Asia
From the MD 's desk
I wish you all a happy and prosperous new year, and personally
extend my gratitude to our customers, suppliers and employees
for their unwavering support during a particularly difficult 2012.
Challenges were prevalent throughout Asia, including Thailand’s
devastating floods, Vietnam’s sluggish economy, and typhoons
and subsequent log ban in the Philippines, among others. Despite
the uncertainties, Loscam Asia finished the year with double-digit
growth – a monumental achievement that made celebrations of
our company’s 70th Anniversary more meaningful.
Demonstrating our commitment to the region, we continue to
invest in infrastructure and network development in China,
including the opening of new depots in major cities. Loscam now
provides service coverage throughout China, facilitating better
service and reach, and allowing us to expand our customer base,
culminating in the milestone of having over 2 million pallets on
hire. We also introduced a new plastic pallet to the Chinese
market to serve more specialised needs.
2013 begins with significant increases in labour and raw materials
costs in every country. Our goals are to focus R&D efforts on
finding alternative materials and developing new products. We are
also working closely with customers to boost efficiency and
control costs for a leaner supply chain, as well as leveraging IT to
manage transactional processes and increase access to real
time data.
It is an exciting time for Loscam Asia. Our business continues to
grow, despite the challenges. We will forge ahead, with the
broader goal of becoming our customers’ true pooling solutions
partner.
Contents
On the Cover
China Plastic Pallet
5
Customer Update
Yonghui China
3
Ichitan Thailand
4
Special Feature
Fresh Produce Food Safety
6
New Zealand update Loscam’s 70th Anniversary
Celebration
7
Loscam News
From the MD's desk
2
Indo Semarang Depot Support Convoy For Kids in Thailand Tianjin Exhibition Loscam Asia Management
Conference 8
Loscam Across Asia is printed on The Forest
Stewardship Council (FSC) certified paper
Contact List
Thailand
Tel (66) 3521 5549 Fax (66) 3521 5550
China
Tel (8621) 6104 8156 Fax (8621) 6104 8162
Hong Kong
Tel (852) 2419 2692 Fax (852) 2521 5205
Indonesia
Tel (62) 21 883 72050 Fax (62) 21 883 72051
Malaysia
Tel (603) 5511 7066 Fax (603) 5511 7062
Philippines
Tel (632) 842 7878 Fax (632) 850 0905
Singapore
Tel (65) 6863 0316 Fax (65) 6863 0312
Vietnam
Tel (84) 650 3 769 199 Fax (84) 650 3 769 203
Contact us
For general enquiries, contact Jamie Lo,
tel +852 6292 1613, jamie.lo@loscam.com.
If you wish to receive the Loscam Across Asia
magazine by email please contact editor@loscam.com
2
Your Pooling Solutions Partner

Customer Update
Yonghui Surges Ahead
with Loscam' s Support
Founded in 2001, Yonghui Supermarket Co., Ltd. was the first company to introduce
fresh agricultural products into a modern supermarket setting in Mainland China. At the
end of 2011, Yonghui boasted 325 large and medium-sized stores, covering a combined
area of more than 3 million square metres. With an annual turnover of CNY 20.38 billion,
Yonghui ranked in the top 20 among China’s 100 largest enterprises. Yonghui was listed
on the Shanghai Stock Exchange in 2010 and by 2015, its annual turnover is expected to
reach CNY 50 billion.
To support its business growth, Yonghui recently established large
distribution centres (DCs) in Fuzhou, Hefei, Beijing, and Chongqing.
With a combined total area of over 100,000 square metres, the
DCs will serve Yonghui stores nationwide. To substantially
reduce capital outlay and augment the company’s supply
chain operations, including providing an effective solution
to the empty pallets and capital occupation caused by
seasonal fluctuation, Yonghui chose Loscam as its
partner to handle its pooled pallet needs. In June 2012,
the two firms signed a national contract to adopt the
use of the ECR standard pallet in all of Yonghui’s DCs.
The Chongqing DC was the first to be put into operation
in October 2012. Anticipating a surge in demand during
the country’s National Day holiday, Loscam arranged
pallets from local and nearby depots to meet Yonghui’s
urgent needs, ensuring seamless operations without
any delay.
As the growth of modern format supermarkets
continues on an upward trend with ever-increasing
sales volume, Yonghui’s DCs will face greater
challenges related to distribution efficiency and
operation costs. To enhance supply chain links and
support business growth well into the future, Loscam will
work with Yonghui to find ways to reduce the average
cost of pallets in each DC, and further promote pallet
pooling amongst Yonghui and its suppliers. This will, in
turn, greatly reduce labour costs and expenses related to
product damage, save manpower resources, and
improve logistics operation efficiency and safety.
Lily Liu Loscam Sales Executive and Yu Jun Yonghui DC Manager
Your Pooling Solutions Partner
3

Customer Update
Pioneering Automated
Warehousing Solutions
A
team from Loscam, including Sirin Limpaitoon, Managing Director – Asia, recently visited
the factory and new automated warehouse of Ichitan, a leading producer of bottled green tea
beverages in Thailand. Located on 30 acres in the Rojana Industrial Park in Ayutthaya province,
Ichitan is truly an industry leader. It is the first Thai F&B firm to employ fully automated
warehousing solutions, as well as one of the first Thai companies in Rojana to bounce back
from the Thai flood crisis in late 2011.
Ichitan’s CEO (and its celebrated brand ambassador) Tan
Passakornnatee explains, “Ichitan has been operating for over
two years. Shortly after we began production, the flood shut us
down for two months. It took an additional four months to make
repairs. Today we produce 600 million bottles each month -
three times the volume since the flood.”
Against a backdrop of packed floor-to-ceiling shelves (with
Loscam’s striking yellow pallets), stacker cranes, and pallet
conveyors, Mr. Passakornnatee explains that the decision to
invest over 200 million baht in the automated warehouse was
backed by a desire to maintain consistency in product quality
and promote safety. He says, “I never considered IRR or NPV.
Safety was my main motivation; without people in the
warehouse, we drastically cut down on errors and serious
accidents. And now, we have the added benefit of a shelter
from the mandatory wage increase.”
The facility employs about 100 staff, including R&D and
quality assurance specialists. Half of the 100,000 square
metre warehouse is currently in use. “With Loscam’s help, we
are handling 30,000 pallets; each pallet holds 60 cases,” says
Mr. Passakornnatee. “Next year, we will build a second factory
on the premises, and double capacity.”
Ichitan’s products are mostly sold in Thailand through modern
and traditional trade channels. Mr. Passakornnatee comments,
“Thailand’s infrastructure has room to further improve. The
physical reach of many products is limited. The government
should give more support and investment to logistics, including
transport infrastructure and high tech automated processes.”
“If the cost of transporting goods is too high, the country
cannot compete with its neighbours, especially in the wake of
the ASEAN integration. It is important to have a cost-effective
system to re-circulate containers
or packaging at the last point
of use similar to Loscam pallet
pooling system.”
Mr. Passakornnatee plans to take
Ichitan public in late 2013. And
Loscam is poised to grow
alongside this dynamic firm as it
expands production capacity,
increases product offerings, and
penetrates new markets both
within and outside Thai borders.
4
Your Pooling Solutions Partner
L to R : Peter Hubbard Loscam Thailand Country Manager,
Phattharada Kraikhum Loscam Thailand Customer Service
Manager, Tan Passakornnatee Ichitan CEO, Sirin Limpaitoon
Loscam Asia Managing Director and Somsak Nattakrannuwat
Loscam Thailand Sales & CRM Director

On the cover
New Plastic Pallets
a Hit in Chinese Market
In n August 2012, Loscam introduced its innovative plastic
pallets to the Chinese market. Featuring excellent quality
and customer-oriented designs that are well suited for
a variety of uses, the pallets have had strong
customer reviews.
Loscam’s PP unique embedded anti-skid function protects products better.
In Mainland China, Loscam is the largest pallet leasing operator with a
dominant market share in returnable wooden pallet hire. When some of
the company’s customers began to request plastic pallets, Loscam
worked on developing a suitable alternative. Mr. Zhengnan Dai, GM of
China Merchants Loscam (Greater China), explains, “Loscam always
strives to be the leading solution provider for pooling through developing
customer-driven and market-needed products. Our plastic pallet will
expand our service offering to customers who require a more hygienic
pallet for specific uses.”
Loscam’s new plastic pallet conforms to the national
pallet standard and ECR specifications, with
measurements of 1200mm in length, 1000mm in
width, and 173mm in height. Compared to their
counterparts in the market, Loscam’s new product
stands out. Mr. Dai says, “Our plastic pallet has been
thoughtfully designed with many unique and
innovative touches, such as having flat surfaces for
easy cleaning; anti-slip strips embedded in both the
surface and bottom for greater safety while in use;
and a four-way entry capability, enabling easy
handling with various pieces of equipment and
allowing multi-applicability in racking, floor storage
and ASRS.”
Loscam’s existing customers are the new plastic
pallet’s best marketing tools. Mr. Jacky Xu, a DHL
Logistics Manager responsible for one world famous
chocolate brand, says, “DHL has long been using
Loscam’s wooden ECR pallets, with great satisfaction.
But for companies with specific needs, such as our
confectionary client, we are so happy that Loscam
has rolled out this great new pallet. Its innovative
design and improved functionality over the plastic
pallets previously available in the market allows us to
better fulfil our operation requirements, especially in
terms of maintaining immaculate hygiene around the
goods and protecting delicate products with anti-skid
functions.”
Leo Hu Loscam China Senior Sales Executive and Jacky Xu DHL Logistics Manager
Your Pooling Solutions Partner
5

Special Features
Is Asia' s Food Culture
Under Threat from
Poor Supply Chains?
Recent scandals in food safety
highlight the need for improved
oversight of produce supply chains.
Thailand’s Prime Minister Yingluck Shinawatra, recently cited food safety as Thailand’s top
priority. The Vietnamese Government has recently increased penalties for food safety
violations. Malaysia’s Deputy Health Minister, Datuk Shirlin, told a recent conference
that more effective mechanisms have been put in place at every level of the food
supply chain to ensure safety. In January, the Shanghai Government announced
a scheme to reward food safety whistleblowers who report food safety violations.
Returnable Bins Used to Merchandise Larger Fruit
As governments
are clearly responding
to community demands
for greater food standards,
new opportunities for operators
within the food and associated supply
chain sectors.
The transportation sector has increased its use of
vehicle and temperature monitoring systems to ensure
the cold chain is not broken during transport. “In general,
food, even if properly cleaned and packaged, may have some
minor trace of bacteria. The trick is that it doesn’t grow, and
high temperatures cause that problem,” said Kevin Payne,
senior director of marketing for Intelleflex.*
Opportunities also exist for improving the equipment used to
store and transport fresh food. The use of standardised and
hygienically cleaned returnable plastic crates (RPC’s) ensures
fresh produce is kept safe during transit, when handled through
markets and wholesalers and finally at the retailer shop floor.
Loscam is seeing increased demand for its produce solutions
across Asia Pacific as retailers and food producers look to
Pre-Pack Vendors Pack into RPC’s
optimise both logistics and food safety. It is no secret that
retailers achieve higher margins from their produce offering,
providing the motivation to ensure fresh food is merchandised
with minimal handling and in optimum condition.
With the ultimate objective of a “one-touch” system where
produce is picked, transported and displayed in a single RPC,
we are seeing the use of RPC’s and bins emerging in-store
and from pack-house to store, lifting standards where they
are most immediately manageable.
“Once we are able to educate as to the benefits of the use of
bins and RPC’s in store, we will then push their use back
down the supply chain so that we can achieve real benefits in
food quality and improved handling” says Peter Hubbard,
Loscam’s GM Thailand. “We have kicked off our RPC business
in Thailand and hope to bring the benefits of the RPC’s and
bins to our customer base here and across Asia” says Peter.
*Ref : http//freshcut.com.Intelleflex, supplies data monitors to food companies to monitor in-transit temperatures.
6
Your Pooling Solutions Partner

Special Feature
Loscam New Zealand
Continues Expansion
One year on, and now with over 50
customers, the Loscam New Zealand
business continues to grow and offer choice
to the New Zealand market.
Linda Tsui Loscam CFO and Mark Daniel Loscam CEO at Foodstuffs PaknSave, Manakau Store
Loscam’s recently appointed National Business Manager
– New Zealand, Nick Trask, has been overwhelmed at the
level of interest from pallet users across the country, as
they have not had a choice of provider in many years.
“Our customer list is growing by the week as companies are realising not only
does Loscam provide a clear choice in the market, and our 4-way entry pallet
provides a clear point of differentiation in the market” says Nick.
Based on Loscam’s Asian ECR pallet, the New
Zealand pallet enables easier handling at back
of store and on loading and unloading vehicles
as a mix of rear and side unload vehicles are
used in NZ. The Loscam pallet is also safer as
the perimeter bottom boards don’t allow the
pallet to tip when being handled by forklifts (the
current competing pallet is prone to tipping
when handled on the 1m face).
Special Feature
Loscam 70 th
Anniversary
Celebration
Loscam was founded in 1942 and marked its
70 years of business last year. On the occasion
of 70th anniversary, we presented a pallet crystal
trophy to our valuable customers. Besides
celebrating the 70th anniversary, this trophy is
also a token of thanks to our customers for their
continuous support and loyalty. We treasure the
close relationship with our customers and strive
to be your Pooling Solutions Partner.
PT Tirta Investama ( AQUA ) Indonesia Carlsberg Malaysia LF Logistics Thailand DHL Thailand
Makro Thailand HomePro Thailand Nestle Thailand Tesco Thailand Red Bull Thailand
ThaiBev Thailand Unilever Thailand FrieslandCampina Vietnam Metro Vietnam Number One / THP Vietnam
Your Pooling Solutions Partner
7

Loscam News
Semarang Depot Moves to Candi
The Semarang Service Center opened on April
2011 in Bawen to serve a range of customers in
central Java, Indonesia. On January 2013 the depot
moved to Candi area in order to better serve the
growing customers base.
The new depot is located at Awasan Industri
Candi, Blok H, No. 9 Semarang -Jawa TengahCandi.
Candi is in the major industrial area in Semarang.
Pak Yoga (centre) and his team
Retail Ready in
China Tianjin
Loscam participated in the 14th
China Chain Store Expo, one of the
largest exhibitions in China’s Retail
Industry. Loscam showcased the latest
innovative Retail Ready solutions and
introduced the benefits of pooling
solutions.
Ganokon as representative of LOSCAM to assist
with cost of taking the children on away-day
Loscam Thailand to
Support Convoy For Kids
Loscam was a Silver sponsor for the CFK
Charity golf day held in June 2012. Loscam
donated over 90,000 THB to assist with
cost of taking the underprivileged children
on an away-day. A total 300 children
involved in the charity went to Bang Saen
Institute of Marine Science and then on to
Bang Saen beach.
Loscam Asia
Management
Conference
The first Quarter Management
Conference for Loscam Asia was
held in Hanoi Vietnam in Jan 2013.
8
Your Pooling Solutions Partner