Kerry Express launches LEAN Programme to enhance Cost Efficiency, Expedites Investments on systems and automation equipment in preparation of market recovery in 2023

Bangkok (6 January 2023) — Kerry Express (Thailand) Public Company Limited or KEX, the country’s leading express delivery provider announced an aggressive LEAN programme and investment plans aiming to drastically improve operation efficiencies in many areas to prepare for a better appetite of bigger market shares and scale when the economy is gradually recovering.

KEX started its aggressive pricing strategy in 2022 which brought big competitive pressures to its rivals. At the juncture of turning into 2023, the company decides to put most of their attention on making the firm better and lower in costs from inside. The LEAN Programme includes (i) an aggressive cost reduction and wastage elimination exercise, (ii) management pay-cut applying to top executives, (iii) headcount freeze across all departments until further notice and (iv) closures of non-performing sites and locations.

KEX will also speed up its capital investments on machineries, equipment and systems which help to automate the work processes in many areas. The first lot of new equipment will arrive Bangkok in Q1 and be up-and-running in Q2.  The company learns a lot of technological and industrial know-how from its sister companies including SF Holding (stock code: 002352.SZ) headquartered in China and Kerry Logistics Network (stock code: 0636.HK) in Hong Kong.

“With or without the adversities the market sees out there, be it inflations, surging fuel prices, labour shortages or macroeconomic uncertainties, a good and responsible market leader shall always look inward and find ways to improve its cost efficiency, people’s productivity, and creativity. We decided to launch the LEAN Programme in the first week of 2023 as a commitment to internal improvement and returning to be profitable.

At the same time, we are expediting investments. We are speeding up our procurement on machines, systems, and equipment. Such investments will bring KEX’s running costs down immediately and our operations to another level. SF Express and KLN are giving us a lot of inspiration especially in technologies and industrial know-how,

We will also slow down the development of non-core businesses so our people could focus on the above initiatives with sharper attention.

All the above are not easy but we truly believe these are the right movements. We expect a breakthrough in profit recovery and in bringing KEX to another level of success in a very short time,
Kerry Express has a long track record of adapting to changes. We do not believe in any golden winning formula except ‘non-stop improvement’” said Mr. Alex Ng, CEO of Kerry Express (Thailand) Public Company Limited.