Revolutionizing Logistics Services with DX to Enhance Customer Satisfaction

Honda Trading Asia Co., Ltd. (HTAS), a group company of Honda Trading located in Bangkok, Thailand, operates its own warehouses for logistics services. HTAS provides export services and domestic operations in Thailand, focusing on parts, machinery and raw materials. In recent years, the company has been leveraging digital transformation (DX) to improve productivity and enhance customer satisfaction. We spoke with two leaders involved in logistics operations in Thailand about their current initiatives and future outlook.
Note: Information is accurate as of March 2025.

Operating Four Warehouses in Thailand with Advanced DX Initiatives

ーCan you provide an overview of your operations?

Ariya: We operate four warehouses in Thailand, offering tailored logistics services to meet the needs of our customers. These include just-in-time (JIT) delivery, pre-delivery inspections, and repackaging into customer-specified formats, among other services.

Our warehouses are strategically located in Ayutthaya and Prachinburi provinces, where many of our customers, including Honda manufacturing plants, are based. This proximity allows us to efficiently manage warehouse operations close to our customers. In addition to providing domestic delivery services within Thailand, we also handle export packaging services, which are critical for ensuring product quality. Currently, we export to 16 countries.

ーWhat DX initiatives are you implementing?

Ariya: Across all four warehouses, we independently manage operations while implementing DX and innovation through warehouse management systems (WMS) and other subsystems.

Specifically, we are focusing on improving operational accuracy and visibility by utilizing systems and IoT devices. For example, we use 3D scanning equipment and 3D printers to efficiently design export packaging specifications. Additionally, we have installed cameras on our packaging lines to prevent packaging defects, ensuring accurate deliveries to our customers.

We also use IoT devices to implement temperature control systems in our warehouses, enabling us to handle precision products that require specific temperature conditions.

Furthermore, to ensure traceability, we manage operations using QR codes and RFID technology. We have also introduced autonomous mobile robots (AMRs) to enhance efficiency. By leveraging DX and innovative technologies, we can manage multiple operational tasks across various locations while ensuring safe and reliable operations as a logistics center handling our customers' valuable products.

AMRs Deliver Significant Results

ーCould you share more about the use of AMRs?

Somya: As part of our automation efforts, we fully introduced AMRs in September 2024, and they have delivered significant results. By utilizing AMRs, we have not only improved operational efficiency but also ensured the quality of cargo handling.

For example, previously, multiple operators used forklifts and hand lifts for cargo handling. However, with the introduction of AMRs, we have reduced the required workforce and equipment by more than half. This allows our team members to focus on more creative tasks, and we believe this contributes to our customers' cost competitiveness.

ーHow about your WMS system? What makes you special from others?

Somya: We manage all warehouse operations--from receiving cargo to delivering it to customers--using our proprietary WMS. Additionally, we have developed various subsystems in-house and integrated them with the WMS to consolidate diverse operational data.

This integration allows us to provide customers with visibility into the status of their cargo in our warehouses, as well as clarifying the operational history of their shipments. We believe this transparency enhances customer confidence in our services.

Leveraging Expertise to Solve Customer Challenges

ーCould you share an example of how you address customer challenges?

Somya: Earlier, I mentioned the use of cameras on our packaging lines. These cameras can record the activities during the packing operation. This will ensure our operation quality and enhance operation traceability. Some of cameras are equipped with image recognition capabilities powered by machine learning. In the packaging process, issues such as incorrect parts being packed, or incorrect quantities being shipped can occasionally occur. To prevent such issues, we use AI cameras to detect defects, ensuring high-quality logistics operations.

Since implementing this system in March 2024, we have not received a single report of defects or complaints. While this level of quality may be an expected standard from the customer's perspective, we take great pride in this achievement.

Pursuing Value-Added Services and New Business Opportunities Through Operational Transformation

ーWhat are your future goals?

Somya: We had become a company that provides diverse solutions in supply chain management (SCM). Our vision is to establish ourselves as a service provider offering an advanced SCM platform.

The idea is for customers with procurement and logistics operations to utilize our logistics platform. A key aspect of this vision is integrating big data from both our operations and our partners, using it to optimize operations such as optimization of inventory levels and of transportation routes for delivery trucks.

Additionally, we want to ensure that our services are accessible from any device and provide real-time visibility for our customers and partners.

While this may sound futuristic, it is a vision we are determined to achieve in the near future. By pursuing value-added services through operational transformation, we aim to remain a trusted and indispensable partner for our customers.