Loscam Advocates Logistics Standardisation for Myanmar Retail & Distribution

Patrick Chan Loscam

On 14th Jul 2016, China Merchants Loscam, a leading pallet rental provider, participated in the Myanmar Retail & Distribution Operations Forum held in Yangon, Myanmar.

At the forum, Mr Patrick Chan, Director of Regional Business Development – SE Asia & Taiwan of China Merchants Loscam, delivered a keynote speech on the importance of standardisation in the development of the logistics supply chain. Such uniformity will facilitate the modernisation of the domestic retail distribution sector in Myanmar. Patrick shared the development of Loscam’s pallet pooling network across SE Asia. He shared success stories of major FMCG manufacturers and retailers in Asia Pacific using Loscam’s ECR (“Efficient Customer Response”) Asia standard pallets for domestic distribution and cross-border palletised movements.

Myanmar Retail & Distribution Operations Forum was organised by the Global Supply Chain Council. This one-day forum focused on how retailers, manufacturers, and brand owners are striving to create world-class retail and distribution operations that will meet the demands of the promising Myanmar market. Regarded as one of the fastest growing and most promising economies in Asia Pacific, Myanmar has seen its retail sector expanding between 7 percent to 15 percent annually from 2012 to 2014, in line with its overall GDP growth exceeding 7 percent annually over the same period.

Myanmar domestic retail sector remains very fragmented, with more than 90 per cent of the industry dominated by traditional family-run small stores while modern retail accounting for just 10 percent of the FMCG segment. The situation results in huge gaps within the supply chain, with many manufacturers and brand owners facing significant challenges in distributing goods to consumers efficiently.

“To cope with the accelerating pace of retail growth, efficient distribution and logistics operations must be developed in Myanmar, and logistics standardisation is the key and the cornerstone for achieving an integrated supply chain in the retail sector”, Patrick pointed out. “Standardised packaging equipment like pallets and cartons will make unit loading and palletised delivery possible for the industry in their drive towards modernisation of the logistics sector. It will truly benefit Myanmar’s retail and logistics sector to adopt the standards widely used in the region, in order to further integrate with the ASEAN market”.

For the past two decades, Loscam has been collaborating actively with industry stakeholders in all the countries in which Loscam operates on pallet standardisation for the retail sector, with a common aim to increase supply chain efficiency and to lower logistics costs for the industry. The achievements and the benefits can be seen in highly-efficient logistics performance markets such as Thailand, Malaysia and Singapore.

Source: Loscam