THPD focuses on the crown of logistics infrastructure

Thailand Post Distribution (THPD) wants a

Thailand Post Distribution (THPD) aims to become a “fully integrated logistics solution provider” in the next three years.

Thailand Post Distribution (THPD), a business-to-business (B2B) logistics arm of Thailand Post, is transforming its business with the goal of becoming a fully integrated logistics solution provider within three years.

The company plans to become a national logistics infrastructure company to conquer the international market, said CEO Peera Udomkitsakul.

THPD’s niche is the delivery of bulky packages or items of a certain size through the B2B model. Its customers include companies that produce electronic products, furniture manufacturers, pharmaceutical companies and hospitals.

THPD employs 1,300 people, including employees and contracted staff.

The company aims to list on the Stock Exchange of Thailand (SET), and expects to file a listing proposal with the Securities and Exchange Commission in the fourth quarter of 2024.

Mr. Peera says Thailand Post Distribution aims to be the first state-owned enterprise under the Ministry of Digital Economy and Society to be listed on the SET.

THPD aims to be the first state-owned enterprise under the Ministry of Digital Economy and Society to be listed on the SET.

Mr. Peera said the operations adjustment aligns with the parent company’s transformation roadmap.

The adjustment is necessary to cope with fierce competition from rivals using predatory pricing strategies, as well as generate a new revenue stream, he said.

Orders received through Thailand Post account for approximately 45% of THPD’s delivery business.

Mr Peera said that the express delivery of medicines and medical supplies is THPD’s core expertise. The healthcare sector accounts for 35-40% of the company’s total delivery business. Healthcare delivery services involve approximately 1,500 hospitals across the country.


THPD posted total revenue of 123 million baht and net profit of 63 million baht in 2020, followed by revenue of 107 million and profit of 64 million in 2021. Last year, the company posted revenue of 81 million baht and net profit of 65 million baht.

He said the company is in the process of hiring a financial advisor for its listing plan. THPD is adapting its operations to fully comply with SEC requirements.

Thailand Post CEO Dhanant Subhadrabandhu said that THPD should gain several benefits from the listing.

Mr Dhanant says 2023 is the year Thailand Post needs to increase the efficiency of its existing services and develop new digital services.

First, the company would have access to funds to develop innovation and initiatives, potentially leading to mergers and acquisitions in the long run, he said.

Second, the listing on the SET should drive the company to higher standards of operational management to meet the demands of the stock market.

Third, the listing opens up more opportunities for potential partners to work with THPD in the future, as a publicly traded company will have a more flexible structure better suited to joint investments, said Mr. Danant.


Thailand Post previously founded Fuze Post, a joint venture with JWD Info Logistics and Flash Express to provide a courier service. The company wants to capitalize on the cold chain logistics market, which is valued at 34 billion baht with an annual growth rate of 10%.

He said the Fuze Post venture provides diversification for Thailand Post.

Fuze Post may consider listing on the SET, or Market for Alternative Investment, in the future, said Mr. Danant.

Fuze Post started direct collection channel services in September 2021, collecting items for delivery and then expanding to drop-off points. The company is expanding to serve the Asia-Pacific market.

Fuze Post’s strength lies in the synergy created by its extensive network of direct pick-up and delivery channels, as well as Flash Express’ digital management technology.

Thailand Post specializes in door-to-door delivery using its nationwide network and several years of experience, with a combined workforce of over 20,000 delivery drivers operating in every part of the country and familiar with their communities.


Mr. Peera said that THPD is developing digital delivery platforms and digital services, scheduled to be launched this year, as part of its expansion for logistics services.

One of the services is Prompt Send, a ride-sharing platform for parcel delivery, aimed at helping people generate revenue by using their own vehicles. The platform can also serve One Tambon, One Product (Otop) sellers.

THPD plans to offer Prompt Send applications to people who own a vehicle and are interested in the service, without the service fee for the first year, he said.

Package delivery rates will be set after the launch of the service, Peera said.

The company also offers an e-wallet system for transactions related to Prompt Send.

Thailand Post has 1,000 parcel deliverers, while THPD has 700.

He said about 1,300 vehicle owners had signed up to participate in a trial of the Prompt Send system.

The total number of parcel delivery trucks under the Prompt Send platform is expected to reach 50,000 in its third year of operation, Mr Peera said.

The Prompt Send platform allows vehicle owners to identify and select a parcel delivery job that matches their vehicle availability and available space.

The purpose of the service is not to make a profit, but to serve Thai communities and explore a new business in the long term, he said.

Mr. Peera said that THPD is developing a Prompt Order e-marketplace platform for wholesalers especially Otop producers and farmers across the country. The platform is expected to be available on a website and mobile app.

“Prompt Send and Prompt Order complement each other and should help Thais benefit from logistics service. This represents the social role of Thailand Post and THPD,” he said.

THPD is also studying a plan to convert its existing warehouses into fully automated warehouses with robots.

Development is expected to start in the third quarter of this year.


Mr Dhanant said Thailand Post strengthened its fundamentals and explored new revenue streams last year.

This year, the goal is to improve the efficiency of its existing services and develop digital services such as a total solution for document processing and a digital mailbox service for private and government entities, he said.

Merely offering attractive parcel delivery service rates is not enough to support the company in the long run, said Mr. Danant.

Thailand Post’s turnaround efforts have been catalyzed by optimizing delivery service efficiency, seeking new revenue streams from digital services, increasing the sales potential of its distribution channels and promoting a sustainable, green logistics system.

Transportation and logistics generate 47.6% of the company’s total revenue, followed by the mail group (31.3%), the international services group (15.9%), the retail business group (2.78%), the financial business group ( 1.78%) and other matters (0.66%).

He said Thailand Post should become a comprehensive postal and logistics service provider that adopts international standards by offering four key solutions: a global cross-border service, data transportation, transportation solutions and network reinforcement.

The logistics industry is still the lifeblood of the Thai economy, especially in the retail and e-commerce sectors. However, Thailand Post has adapted its organizational role by launching the four solutions, Mr Dhanant said.

Global cross-border service solutions aim to connect Thai companies to other parts of the world, supporting international fulfillment warehouses in free zones, e-commerce business areas, international warehouse project development and other services.

Data transport solutions use all the information flowing into the organization to build and improve services. Thailand Post aims to reduce customer complaints, including those about lost packages, by improving service competence through partners.

The company developed an electronic document management system (Prompt Post), an electronic time stamp service (e-Timestamp), an identity verification service (KYC), and uses post office space across the country as county-level fulfillment service areas.

In the field of network-enhancing solutions, Thailand Post builds business alliances aimed at generating mutual benefits for all organizations.


Mr. Dhanant said annual sales have fallen by more than 10% on average due to the increasing competition in the courier services market, especially last year when several foreign players launched highly competitive pricing strategies.

Thailand Post’s revenue from parcel delivery services declined by approximately 15% per transaction in 2022 compared to 2021. Recent increases in fuel prices have caused the company’s fuel costs to increase by 30%.

Thailand Post still has the largest market share, around 45%, in the mail and parcel delivery market, up from over 50% two years ago. This decline led the company to launch its turnaround roadmap, he said.

Mr Dhanant said that courier services in Thailand should be regulated to prevent operators from engaging in a below-cost pricing strategy, and to ensure that the quality of services provided benefits customers.

He said cut-throat competition could pose a major risk to the company as a national logistics infrastructure provider, which is also required to provide a social service. The company always provides basic support to the public especially during crises such as delivering medicines, medical supplies and equipment to people across the country.

“Thailand Post urges the government to reshape the competitive landscape for the benefit of the country,” said Dhanant.

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