Thailand Post plans B500m upgrade

Thailand Post is spending 500 million baht on upgrading its core information technology (IT) automation systems and distribution centres to boost service innovation for the next-generation of online merchants and digital lifestyle consumers.

The move is intended to fight back against the influx of no-frills messenger service apps like Lalamove, a Hong Kong-based delivery-matching mobile application, and parcel delivery service providers looking to capitalise on Thailand’s burgeoning e-commerce market.

Of the total 500 million baht in spending, 300 million will go towards upgrading IT automation systems. The remaining 200 million baht will go to improving flexibility within and across its distribution centres.

“We’re also in the process of transforming ourselves to become more digital in a drive to improve services and maintain our leadership in the home delivery service market,” said Samorn Terdthampiboon, president of Thailand Post.

Thailand Post plans to roll out a slew of innovative services over the next seven months.

For instance, she said PromptPost, a pre-registration mobile app service for high volume parcel delivery, will allow users to reduce the parcel processing time from eight seconds when they employ the service at a post office to two seconds when using Thailand Post’s semi-automated processing counters.

Mrs Samorn said Thailand Post will soon provide an e-money service called THP Card, which allows people to use a card to pay for all Thailand Post services at its post offices across the country.

Customers can also top up their cards at Thailand Post locations nationwide.

She added Thailand Post plans to apply for an operating licence with the Bank of Thailand to provide an e-wallet service in the near future.

Thailand Post has expanded its cross-border trading and e-commerce services to Indochina, crossing the Cambodian, Laotian and Myanmar borders to reach Chinese consumers.

Mrs Samorn said Thailand Post is ready to enter Asean Economic Community (AEC) markets following a comprehensive organisational restructuring and the implementation of its enhancement schemes.

Cross border revenue represented 14% of Thailand Post’s total, boasting bright prospects for revenue growth thanks to the booming business-to-business e-commerce market.

Up to 37% of cross border revenue comes from its mail delivery service, and 6% from its mail system used to send financial statements and business letters to the retail and financial sectors.

Mrs Samorn said Thailand Post expects its revenue to grow by 22% to 24.3 billion baht this year. Net profit is expected to reach 3 billion baht this year.