SPAR, one of the largest food outlet chains in the world, will partner with DHL Supply Chain and the Bangchak Retail Company (BCR) to establish up to 300 new convenience stores in Thailand by the end of 2020.
The move is driven by a burgeoning middle class cohort in the country, which is helping to drive up retail sales.
The deal will see the German logistics giant support SPAR’s expansion plans with end-to-end transport, distribution and warehousing services across Thailand, with BCR providing the front-end store infrastructure for the Dutch retailer.
SPAR’s supply chain will currently use the DHL Bangna Logistics Campus for ambient warehousing and distribution; and its Klong Prapa warehouse for handling frozen goods.
Tom Rose, Head of Operations at SPAR International, said: “To support SPAR Thailand in delivering SPAR’s global reputation for freshness, choice, quality, and service, we knew we needed a logistics partner with proven experience in maintaining world-class food retail supply chains.
“DHL’s track record in sustaining fast-growing food retailers, both in Thailand and other markets worldwide, gave us the confidence to use their infrastructure as the foundation of our local supply chain.
“Since working with DHL, they have impressed SPAR with the smoothness and visibility of its third-party logistics services, leaving us in no doubt that this partnership will help SPAR reach its sizable ambitions for growth in the Kingdom.”
DHL will supply some key fetaures, including CCTV systems, automatic fire protection, and temperature controlled warehousing. Both warehouses will also be managed by WMOS, a warehouse management platform, to maintain levels of inventory accuracy and productivity in line with SPAR’s global best practices.
Kevin Burrell, CEO, Thailand Cluster, DHL Supply Chain, added: “Retail operations require highly specialized experience to achieve the levels of inventory quality, shipment accuracy, and timeliness needed to meet swift changes in consumer demand.
“With Thailand’s retail sector expected to continue growing steadily alongside disposable income levels, we’re keen to take our award-winning services to the next level as we help SPAR bring its world-class quality direct to Thai consumers.”