Opportunities and challenges
Thanks to over 100% business growth since the launch of operations, KEX needed to invest in network expansion. As of the end of 2021, we have more than 22,000 fleets under our management, breaking the record of all express delivery businesses in Thailand. KEX sees the opportunity to become the leader in creating a positive impact on the environment by adjusting our operation to reduce greenhouse gas emissions and optimise energy consumption.
Management strategies and approaches
In 2021, KEX worked with third-party consultants, government agencies, and international organisations to explore the feasibility of importing electronic vehicles (EV), setting up EV stations, and enhancing the manufacturing capacity of electric motorcycle batteries. In 2021, KEX and its partners tested our electronic motorcycles for parcel delivery in the Bangkok Metropolitan area. Since then, we have consistently discussed and explored the possibility under the three-to-five-year plan in transitioning to sources of energy that emit less pollution, according to the 2025 goal to become the leader in the low-carbon logistics business.
KEX adopts a route optimization strategy that efficiently navigates our drivers to the fastest and shortest routes to reduce fuel consumption when delivering parcels to the end recipient. The operation teams conduct daily meetings before work and assign route plans to each driver. In addition, we maintain a strict policy of returning zero empty trucks to the distribution centres to minimise our operational waste footprint. After completing their delivery at the final destinations, drivers must retrieve parcels from the local parcel shops and private residences and bring them back to the sorting hubs at the end of the day. At KEX, we have control rooms to monitor each driver's performance on each route throughout the day.
At the beginning of 2022, KEX launched a free pick-up campaign to encourage customers to use our door-to-door (D2D) service, which works effectively as the customers do not need to travel to our parcel shops.
As for the packaging, the choice of materials for producing parcel boxes or sealed plastic bags does not only encompass its durability but eco-friendly materials are also taken into consideration. In the present, every type of box packaging at KEX are made entirely of recycled materials while sealed plastic bags are made of reusable plastic. KEX is in the process of studying the feasibility of improving the multi-faceted practices for sustainable packaging. This is to assure that the customers will continue to receive quality service from packaging that are damage-proof. The result of the study will further be reported.
As for internal administration, KEX initiated a power-saving campaign at every head office, warehouse, and parcel sorting and distribution centre by designating the schedule to switch the lights off when not in use, such as during lunch break. In addition, waste sorting bins are installed at every workplace for reuse and recycling in collaboration with the service providers licensed and certified by relevant government agencies.
In 2021, KEX announced the green publication guidelines, which requires our employees to avoid printing meeting documents and opt for online meetings and digital documents. If a printed publication is necessary, we choose to work with printing companies certified as green printing, as specified in the Company's procurement documents. A notable example is the distribution of the invitation letter for the Annual General Meeting of Shareholders since 2019 where KEX's printed materials have been certified as carbon-neutral.
In the Supplier Code of Conduct, KEX has also included the measures on the environmental management and collaboration with suppliers and business alliances that implement clear environmental practices. According to the Procurement Policy and the Vendor Assessment Policy, our procurement department implements the plan to randomly audit our 50 biggest partners each year.