Makro's Distribution Centers at TPARK Wangnoi - Ticon

Makro’s Distribution Centers
at TPARK Wangnoi
www.ticon.co.th

Makro’s Distribution Centers at TPARK Wangnoi
WHEN SIAM MAKRO WAS LOOKING TO EXPAND ITS
SUPPORT FOR THE OPERATION OF ITS WHOLESALE CASH
AND CARRY TRADE CENTERS – ALSO KNOWN AS ‘MAKRO’ –
THROUGHOUT THAILAND WITH A NEW DISTRIBUTION
CENTER, THE COMPANY TURNED TO PROFESSIONAL
LOGISTICS FACILITY DEVELOPER TICON LOGISTICS PARK
(TPARK) TO COME UP WITH A BUILD-TO-SUIT FACILITY THAT
MET THEIR REQUIREMENTS.
Siam Makro needed something specific –
build-to-suit facilities that could cater to their
formation of current store outlets as well as
future expansion of its stores to more locations
throughout Thailand. They also needed to
provide flexibility for future growth, and reduce
delivery time and cost of operations with a
state-of-the-art logistics facility. It needed to be
specifically designed with various temperature
controlled rooms and include crossdocking
operations at strategic locations to enhance its
supply chain performance and speed up the
delivery process from suppliers to all Makro
branches across the country.
TPARK was tasked with a mission to find the
most suitable location for Siam Makro’s new
facilities. It had to be within close proximity to
Siam Makro’s market sources, comply with
town planning and building control regulations
in the area, and be able to synchronize with its
current operations.
Mr. Philip W. Cox, Executive Commercial
Director for Dry Food and Supply Chain
Management said, “We had been running two
smaller cross dock operations for the past four
years. As our business grew, we needed a
larger facility to accommodate our needs.
TPARK proposed a few locations before we
decided to go with the location currently known
as TPARK Wangnoi. Before this, there were a
few options to run operations on a smaller
scale; however, it would not be the most
efficient way to run our distribution operations.
We always knew we needed a build-to-suit
facility once we had enough volume to justify it.
“The location at TPARK Wangnoi is ideal for
establishing the distribution centers of our fresh
food products and dry & non-food products
because it is located very close to our market
source. Furthermore, TPARK Wangnoi’s
location allows convenient and efficient
distribution to the north or the northeastern
regions of Thailand and also into Bangkok,
which is where a large number of our stores
are located. Hence, we decided to consolidate
our fresh and dry & non-food cross dock
distribution centers within one location, TPARK
Wangnoi, establishing the facility for nationwide
distribution.
To ensure that the distribution centers met
demanding specifications and would be able to
handle Siam Makro’s day-to-day operations
required professional and experienced
developers, and large investments.
“We had to consider every piece of information
and recommendations from various sources,
such as our logistics provider and TPARK,” Mr.
Cox said. “The consideration and approval
process took over a year. We wanted to make
sure we got things perfectly right. During this
time, we worked closely with TPARK to get the
design to conform to our needs, budget and
time frame.”
Gathering Customer’s Requirements and Inquiries
Conceptual Designs
Partner Selections
Submission of Proposal, Definitive Design,
and Rental Budget
Acquiring Land (Submitting Letter of Offers)
Signing of the Memorandum of Understanding (MOU)
Signing of the Agreement
TPARK’s ‘Build-to-Suit’ process comprises
methodical steps that are aimed at achieving
the highest results and satisfaction for the
client. TPARK’s build-to-suit development
process begins with the customers’
inquiries, which is an information gathering
step which allows TPARK to probe below the
surface to understand the specific needs and
requirements of each customer. After that
comes the conceptual designs based on
customer inquires, followed by partner
selection, in which TPARK carefully selects a
professional partner in order to ensure that
the facilities developed will meet the
standards and requirements. Next are the
submission of proposals, definitive
designs, and rental budget, which ensure
that the customer agrees to the terms and
conditions associated with rental and the
design and specifications of the warehouses.
Finally, submitting the Letter of Offer to
acquire land and signing the MOU are
performed, and the process is concluded with
the completed construction of the build-to-suit
warehouses and signing the Agreement.

“TPARK worked very smoothly with us since
day one,” Mr. Cox said. “They provided us with
the most flexible environment to create two
highly efficient, custom-built distribution centers,
one designed for fresh foods and one for
modern cross dock operations. Both will help us
reduce labor and distribution costs for our
branches across Thailand, all while achieving
higher accuracy and productivity, allowing us to
move goods to our stores much faster.”
The total space of Siam Makro’s distribution
centers developed in TPARK Wangnoi in
Ayudhaya province is approximately 26,350
square meters. This consists of two facilities:
Makro Fresh Food Distribution Center with an
area of 10,930 square meters, and Makro
Cross Dock Distribution Center with an area of
15,420 square meters.
TEMPERATURE CONTROL ROOM
1. Receiving and Loading Room offers temperature
from +5°C to +15°C
2. Cold Storage 1 offers temperature from -25°C to -20°C
3. Cold Storage 2 offers temperature from -25°C to -20°C
4. Chill Storage Room 1 offers temperature
from 0°C to +2°C
5. Chill Storage Room 2 offers temperature
from 0°C to +2°C
6. Chill Storage Room 3 offers temperature
from 0°C to +2°C
7. Chill Storage Room 4 offers temperature
from 0°C to +2°C
8. Daily Domestic Packing Room for Fruits and
Vegetables offers temperature from +8°C to +15°C
9. Daily Domestic Packing Room for Fish and Seafood
offers temperature from +2°C to +4°C
The Makro Fresh Food Distribution Center
has 10,930 square meters of overall space
in which TPARK has built nine unique
temperature control rooms for Siam Makro’s
fresh food storage needs. Each room
offers a specific temperature range, from
-25°C to +20°C, and are designed with
separate entrances and exits to accommodate
a swift flow of traffic.
TPARK fitted the fresh food facility with 41
loading docks, 30 dock levelers and raised
the operating floor by 1.3 meters. Other
specifications include:
• A clear height of 10 meters
• Floor loading capacity of up to 3 tons per square meter
• Truck parking for 17 units of 40-ft container trucks
• Roof insulation and ventilator system
• Sprinkler systems
• A security guard house with restroom facility
Siam Makro’s 15,420 square meter Cross Dock
Distribution Center is carefully designed to
support cross docking operations. One side of
the facility is dedicated to receiving inbound
goods from suppliers while the other side is
dedicated to loading outbound goods destined
to Makro stores throughout Thailand. In between
the two sides is an automated sortation
system – the first of its kind in Thailand – that
allows Siam Makro to handle more than 9,000
cases per hour, or more than 80 million cases
annually.
Mr. Philip W. Cox,
Executive Commercial Director for Dry Food
and Supply Chain Management, Siam Makro PLC
TPARK built the facility with 92 loading
docks equipped with 71 dock levelers.
Overall space is 15,420 square meters with
1,380 square meters of office space. Other
specifications include:
• A clear height of 8 meters
• Floor loading capacity of up to 3 tons per square meter
• Loading and unloading area for semi-trailers
• A raised floor height of 1.2 meters
• Column spans of 15-20 meters × 20-30 meters
• Truck parking for 33 units of 40-ft container trucks
• Roof insulation and ventilator system
• Sprinkler systems
• Security guard house with restroom facility
TPARK worked closely with Siam Makro to
build the Fresh Food Distribution Center and
Dry-Goods Cross Dock Distribution Center right
next to each other. The Siam Makro Distribution
Center project is a testament to how TPARK
can build logistics facilities tailor-made for its
customer’s needs.
Mr. Cox said, “Having the dry-goods cross dock
facility built right next to the fresh food facility in
TPARK Wangnoi allows us to achieve even
further cost efficiencies in areas such as IT, and
we are also able to cut various additional
expenses by having both facilities side by side.
“We are already benefiting from the new distribution
center that TPARK has built to suit our
requirements. In addition, we are able to reduce
delivery lead times, increase the frequency of
our deliveries, lower stock levels at our stores and
achieve a higher level of service to our valued
customers.”
www.ticon.co.th

Automated Sortation System
TICON Logistics Park Co., Ltd.
175 Sathorn City Tower, 13 th Floor, Suite 1308,
South Sathorn Road, Sathorn,
Bangkok 10120 Thailand
Tel: +66 (0) 2679 6565
Fax: +66 (0) 2679 6569
Email: logistics@ticon.co.th
www.ticon.co.th