Moving towards logistics efficiency with new centralised distribution hub.

SELANGOR: Daikin Malaysia Group company is setting up a new centralised distribution hub in Rawang to replace its eight scattered logistic centres in Klang valley.

In a press release on Sunday (Oct 11), the air conditioning manufacturer company said the new centralised distribution hub would enable the company to optimise its logistics efficiency and support overall business expansion.

“We are merging all three subsidiary companies namely Daikin Malaysia Sdn Bhd (DAMA), Daikin Malaysia Sales & Service Sdn. Bhd (DMSS), Acson Malaysia Sales & Service Sdn Bhd (AMSS) as part of our effort in digital transformation that will enable us to keep pace with rapidly changing environment and customer demands as well as to speed up our logistics management to secure a responsive and agile supply chain,” the statement reads.

The statement also said the hub will be covering some 56,100 square metres of land area and 32,300 square metres of total floor space of building with a total cost of RM126 million.

The company also said this marked its significant contribution in Malaysia’s economic development.

It also added that the construction of the hub was in line with its objective of moving towards green energy sustainability by reducing carbon footprint of its transportation network by 30 percent.

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

“We will also adopt Automated Storage and Retrieval System (ASRS) which will help us move higher volumes of products and make the best possible use of valuable storage space.

“A more widespread adoption of automation and Artificial Intelligence will be seen in our logistics management, driving more sophisticated solutions in the supply chain to speed and improve the delivery of products and services to customers,” it said.