PKT Logistics Group and ECnet signed and exchanged the agreement to mark PKT’s investment of Total Integrated eLogistics Solutions.

From left: (Front) Alfred Low [Head of Finance and ICT of PKT Logistics], Augustine Lee [Chief Operating Office of PKT Logistics], Tarun Mathur [President of ECnet Ltd], Chan Kum Ming [Assistance Vice President of ECnet Ltd], Mary Loo [Business Development Manager of Infor Global Solutions]. (Back) Dato’ Michael Tio [Managing Director and Group Chief Executive of PKT Logistics], Yang Bahagia Puan Tan Piak Bong [Director – Logistics & Regional Operations Division of MIDA].

KUALA LUMPUR: PKT Logistics Group Sdn Bhd will invest RM70mil more in its phase two expansion plan to build a state-of-the-art warehouse in line with its strategy to tap the fast moving consumer goods (FMCG) market.

Managing director and group chief executive officer Datuk Michael Tio said the 365,000 sq ft warehouse, dubbed “The Waves”, was expected to be ready by next August.

“We have already secured a contract from a FMCG multinational corporation (MNC) to rent the entire warehouse plus a double-storey office facility. The MNC will make Malaysia as its Asean manufacturing hub,” he told reporters last week when PKT signed an agreement with ECnet (M) Sdn Bhd for integrated e-logistics solutions. The signing was witnessed by Malaysian Industrial Development Authority director of logistics and regional division Tan Piak Bong.

Tio said The Waves would be situated next to PKT’s first phase of expansion, a logistics hub dubbed “The Ship”, which had just been completed.

“The Ship, which costs RM50mil, sits on 4ha in Shah Alam and its operation will focus on third-party logistics services for a mix of
automotive, food and beverages as well as FMCG customers.

“The Ship consists of 30,000 sq ft of our new corporate headquarters and 150,000 sq ft of ambient warehouse,” he said.
Tio said PKT decided to diversify into FMCG logistics services from its current concentration on auto-logistics as the FMCG sector managed to record growth in the challenging economic climate.

“Revenue of logistics services for the FMCG sector in Malaysia totaled RM2bil annually where a large chunk is dominated by multinational logistics players,” he said, adding that with the investment, the company hoped to secure a bigger share of the market.

Tio said the group was now fully equipped to increase its FMGC business operations to 40% of total sales by 2011 from 20% currently. Automotive logistics is its core business.

Meanwhile, under the agreement with ECnet, PKT would invest RM2.5mil over the next three years in integrated e-logistics solutions which include a supply chain suite and info-warehouse management system.

ECnet is an information technology solutions company that focuses on providing software-as-a-service in areas such as supply chain management, mobility and enterprise solutions.

Tio said it was significant for a local company to have a strong IT system to support its operation to gain a competitive edge against multinational logistics players.

“Our current total logistics solutions, via freight forwarding, customs brokerage, haulage and trucking, will further enhance our services to the FMCG sector. Coupled with our new logistics hub, the software and infrastructure aspects have been addressed to propel us further,” he said.

PKT Logistics Group Sdn Bhd, a freight forwarding company based in Port Klang, aims to capture a quarter of the country's potential RM2 billion logistics revenue in the fast-moving consumer goods (FMCG) market by 2013, says its top executive.

Eighty per cent of the company's overall revenue comes from automotive logistics today, while the balance is contributed by FMCG logistics. PKT recently embarked on a diversification strategy to penetrate into the lucrative FMCG segment to help in its vision to become a billion ringgit company by then.

"The FMCG sector is currently dominated by large foreign logistics multi national companies (MNCS), which from our observation have in these tough economic times managed to maintain and in some cases even record growth," PKT managing director and group chief executive officer Michael Tio said after a signing ceremony in Kuala Lumpur yesterday.

To further enhance PKT's offerings in the FMCG sector, it has invested about RM120 million to develop a modern logistics hub on 10.8 ha of industrial land at Section 32, Shah Alam, Selangor.

Tio said the new facility will focus on the FMCG business.

"We want to achieve the ideal revenue ratio of 60:40 for auto and FMCG logistics respectively by 2011. This is because the FMCG business is growing faster than the auto business," he added.

Under Phase 1 of the development, with an initial RM50 million in investment, the hub will feature a corporate headquarter and a warehouse.

Yesterday, PKT announced that it has secured a contract to build and rent the entire 365,00 sq ft of Phase 2, dubbed as the "Waves", to a leading FMCG company.

PKT expects to hand over the RM70 million warehouse and two-storey office facility to a Swedish MNC tenant in the third quarter of 2010.

Earlier, PKT signed a RM2.5 million contract with ECnet (M) Sdn Bhd to provide integrated total e-logistics solutions for the next three years.

KUALA LUMPUR, Oct 22 (Bernama) -- PKT Logistics Group Sdn Bhd, a logistics service provider, will implement the second phase of its RM70 million logistics hub project in Shah Alam next month.

Its managing director and group chief executive officer Datuk Michael Tio said the contract for phase two of the built-to-suit warehouse, dubbed "The Waves", was awarded by a fast-moving consumer good (FMCG) multinational company.

"We expect to hand over the warehouse to the tenant customer in the third quarter of 2010," he said after a signing ceremony between PKT Group and ECnet (M) Sdn Bhd on the ECnet Integrated Total e-Logistic Solutions here
Thursday. The second phase consists a warehouse and a double-storey office facility on a built-up area of more than 365 square feet, Tio said.

"The multinational company from which we secured the contract has plan to make Malaysia its Asean manufacturing hub," he said.

The first phase, dubbed "The Ship", involved a 150,000-square foot state of-the-art warehouse and has been completed. It was part of the group's RM120 million investment over three years in its 1.15 million square feet of industrial land in Shah Alam.

"We have already received the certificate of fitness. And we are looking at a range of 10 tenant customers, depending on the take-up for the first phase," Tio said.

He also said that Malaysia has the potential to earn about RM2 billion logistics revenue in the FMCG sector, of which PKT Group was looking to secure a quarter by 2013.

After having invested in hardware, the group has extended its investment to information technology (IT) software to boost its competitiveness and improve efficiency and effectiveness in offerings to customers.

Under the agreement signed with ECnet today, it invested RM2.5 million to implement the Integrated Total eLogistics Solutions over the next three years.

The solutions includes the Supply Chain Suite and Infor Warehouse Management System (WMS). The Supply Chain Suite will serve as an operating platform for shipments, involving order-taking, international transportation, customs clearance,
delivery management and invoicing.

The warehouse management system allows users to see what inventory is or will be available, organise work, and align resources and labour.

"Our current total logistics solutions such as freight forwarding, customs brokerage, haulage and trucking will further enhance our offering to the FMCG sector," Tio said.

"With our new logistics hub, both the software and hardware aspects have been addressed. The group is now well equipped to achieve its 60 per cent automotive and 40 per cent FMCG vision by 2011," he said.

http://www.bernama.com/bernama/v5/newsindex.php?id=448779

KUALA LUMPUR: PKT Logistics group of companies will invest RM2.5 million over the three years in an integrated total eLogistics solution to be supplied by ECnet (M) Sdn Bhd, a member of Bombay stock exchange-listed R Systems International Ltd.

In a statement issued in conjunction with a signing ceremony between the companies here yesterday, PKT said the solutions included a supply chain suite and Infor WMS, a warehouse management system.

In 2007, PKT group began diversifying from predominantly automotive logistics to include fast-moving consumer goods. In tandem with that, it has built a RM50 million warehouse facility in Shah Alam.

PKT said it was now extending its investments in IT to boost its competitiveness and to improve efficiency and effectiveness in deliverables to customers.

This article appeared in The Edge Financial Daily, October 23, 2009.

http://www.theedgemalaysia.com/business-news/151993-msian-logistics-firm-to-boost-competitiveness-via-it.html

PKT Logistics Group Sdn Bhd, penyedia perkhidmatan logistic, kini sedang menyiapkan kemudahan fasa kedua gudangnya di Shah Alam, Selangor bernilai RM70 juta untuk disewakan kepada sebuah syarikat multinasional (MNC) dari Scandinavia.

Pengarah Urusan and Ketua Eksekutif Kumpulannya, Datuk Michael Tio, berkata kemudahan fasa Kedua dikenali sebagai ‘The Wave’ merangkumi gudang dan pejabat dua tingkat dengan keluasan binaan 365,000 kaki persegi.

Katanya, gudang bekenaan menawarkan 34 ruang memunggah barang yang direka khusus mengikut spesifikasi MNC terbabit. Beliau berkata, MNC ito yang terbabit dalam sector barangan pengguna mudah digerakkan (FMCG), akan mengambil alik keseluruhan kemudahan disediakan di The Wave dan akan menjadikannya hab di rantau Asean.

“majlis memeterai perjanjian penyewaan dengan MNC terbabit diadakan secara tertutup esok (hari ini),” katanya sambil menambah penyerahan The Wave dijadualkan pada suku ketiga 2010.