Expansion of business through centralisation

09 Oct 2020 / 15:20 H.

The ceremony marking the commencement of construction for the RM126 million Daikin Centralised Distribution Hub in Kota Elmina on Oct 8 saw the official ground breaking by Invest Selangor Bhd CEO Datuk Hasan Azhari Hj. Idris, Gombak District Officer Shukri Mohamad Hamin, Haji Shamsul Shahril Badliza Mohd Noor, Takenaka (Malaysia) Sdn Bhd Director Datuk Ting Tin Siang, Daikin Industries, Ltd. Senior Associate Officer Fang Yuan and Daikin Malaysia Group CEO Shogo Ando.

The establishment of Daikin’s new Centralised Distribution Hub is aligned with the company’’s move towards digital transformation, keeping pace with rapidly changing environment and customer demands.

The new distribution hub will replace the eight scattered logistics centers in the Klang Valley for three companies under Daikin Malaysia Group which are Daikin Malaysia Sdn Bhd (DAMA), Daikin Malaysia Sales & Service Sdn. Bhd (DMSS), Acson Malaysia Sales & Service Sdn Bhd (AMSS).

The ultimate aim of the centralised distribution hub is to optimise logistics and improve efficiency that support overall business expansion of Daikin Malaysia and speed up the logistics management to secure a responsive and agile supply chain.

The new distribution hub covers some 56,100 square meters of land area and 32,300 square meter of total floor space of building. Completion date of construction will be the middle of Sept 2021 and the target to start operations by end Sept 2021.

Daikin is constantly seeking ways to reduce carbon footprint, as it believes by eliminating redundant or inefficient warehouses and making new facilities greener, along with the improvement of transportation efficiency, the company will reduce the carbon footprint of our transportation network by 30 %.

By integrating three companies (DAMA/DMSS/AMSS) logistics centres in Klang Valley, Daikin will implement a total logistics reform and proceed to reduce warehouse cost, transportation cost and handling cost, improve delivery lead time and enhance logistics quality.

The company will also adopt Automated Storage and Retrieval System (ASRS) which will help them move higher volumes of product and make the best possible use of valuable storage space. A more widespread adoption of automation and Artificial Intelligence will be seen in logistics management, driving more sophisticated solutions in the supply chain to speed and improve the delivery of products and services to customers.

This Centralised Distribution Hub mark an important milestone of expanding Daikin’s presence in Malaysia and as a significant contribution to Selangor and Malaysia economic development.

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