Century Eyes Regional Partnership With Pepsi-Cola

From Jamaluddin Muhammad AYUTTHAYA (Thailand), May 4 (Bernama) -- After successfully leasing its warehouse facility in Thailand to PepsiCo, the world's largest snack food company, a Malaysian company is eyeing partnership with them for their logistics services in the Asia-Pacific region. Century Logistics Holdings Berhad Deputy Managing Director Dr Mohamed Amin Kassim said for a start, PepsiCo, the food division of Pepsi-Cola (Thai) Trading Co Ltd, has invited his company to be a strategic partner in the latter's supply chain management in Thailand. It all began when Century Resources (Thailand) Ltd, a wholly-owned subsidiary of Malaysia's Century Logistics Holdings Berhad secured a US$2.45 million (76 million Baht) contract from PepsiCo for utilising its state-of-the-art warehouse facility at the Rojana Industrial Park, here. The contract was inked in September last year for an initial two years for PepsiCo to use the warehouse as its main distribution centre country-wide. "Our company did not merely lease the warehouse to them but also help them in solving their supply chain management, prompting them to invite us to be their strategic partner in strategic planning for their supply chain management for the Thailand market," Mohamed Amin told Bernama. Mohamed Amin said the actual physical supply chain would be provided by existing local players as his company would be involved only in strategic planning. "For example, if they have problems to hit certain target areas, we will draw a plan and solution for them," he said. In fact, PepsiCO has already asked Century Resources to build another warehouse as it wanted to expand its distribution centre in this country and the Malaysian subsidiary company was studying the matter. Century Resources established its presence in Thailand in 2005, with the inception of a third party logistics contract from Nestle. It invested a further 350 million Baht in 2009 to set up its own warehousing facility here in line with its regional growth strategy. Mohamed Amin said since Thailand was PepsiCo's nerve distribution centre for the Asia-Pacific region, Century Resources was eyeing to be its strategic partner in strategic planning for their supply chain management for the region. Century Logistics Holdings is Malaysia's leading provider of value-added supply chain solutions and total logistics services. They also operate in China, Singapore, India, Sri Lanka and Dubai besides Malaysia and Thailand, he said. He said its strategic collaboration has translated into greater efficiency and cost-effective solutions for PepsiCo and its customers. "Our job is done when we satisfy our customers who satisfy their end- customers," he said. He said Century Logistics could help PepsiCo procure some snack food from Malaysian companies, especially halal products for their halal markets in the Asia-Pacific region, should they enter the partnership for the region. "It's a win-win situation where PepsiCo can enlarge its market share in the region and I can help other Malaysian companies too in supplying snack food to PepsiCo. "We don't fight with big boys but work with them," he said, adding that Malaysian snack food companies can complement PepsiCo instead of competing with it. On the impact of last year's disastrous floods to its warehouse here, Mohamed Amin estimated losses at US$789,734.85 (RM2.4 million) and the four-month reconstruction of the facility was scheduled to be fully completed by end of this month. The warehouse was inundated with 2.5 metres of floodwaters, which almost hit the ground floor ceiling for six weeks and it was a co-incidence that PepsiCo moved into the warehouse after the flood ended in December last year. The reconstruction did not affect PepsiCo's operations as work was carried out in phases, he added. Mohamed Amin accompanied Malaysian Ambassador to Thailand Nazirah Hussain who visited the warehouse on Thursday. (US$1 = RM3.03, US$1 = RM30.95 Baht) -- BERNAMA