Startup and logistics in Thailand

Startup and logistics in Thailand

Israel, the country with the most densely populated business in the world After Seacon Conley Valley, USA And has been dubbed the "Startup Nation", the country of startup businesses and a center for entrepreneurship and innovation With a population of just 8 million people, more than 40,000 are working people in high-tech related industries. Which generates more than 15% of the country's GDP. FinTech has the most outstanding start-up business and receives the most investment, followed by Big Data and Cyber Security startups, including Tel city Aviv is a port and economic area of readiness for startup businesses, second only to Silicon Valley and Stockholm, due to a combination of factors such as skilled labor, engineering, investment readiness from agencies. Various technology and policies, laws, economic systems from government support (DIGITAL VENTURES, 2017)

Thailand The National Innovation Agency (NIA) revealed that the number of start-up business registrars in 2018 is more than 1,700, with the forecast that in 2021 there will be 3,000 innovation-driven businesses (NEA Startup Symposium, 2018). The government has a policy to push Thailand to be in the top 20 in the ranking of startups. The fund is supported by over 60 million baht in start-up business. There are 120 Venture Capitalists (VC), with 20 million baht. VCs include CVC (Corporate-VC) consisting of banks and business groups. Others, such as the PTT Energy Business Group, set up Express Solutions with the abbreviation Express So, chemicals and construction groups, SCG set up AddVentures by SCG, IT Group Jaymart set up J Venture, and Dusit Thani hotel business set up Dusit Colors, etc. Raise funds of 35 million baht due to foreseeing the growth opportunities of the startup business And believe in the potential of startups in Thailand in product development

Figure 1 Growth of funding sources in the Thai startup business (Jenpasit P., 2017).

In addition, the National Innovation Agency (NIA) has a policy to push Thai startups to build more business networks with foreign countries by creating partners with more than 25 countries such as Sweden, Germany, Japan, with the need to increase the efficiency of the Startup Ecosystem. Standards such as cooperation with Germany Accelerator South East Asia (GASEA) in the Startup AsiaBerlin (SUAB) of Germany project to develop an ecosystem to promote Thai start-ups in foreign markets And set a goal to raise funds from outside the country. In 2017, statistical data show that the countries in Southeast Asia have the highest proportion of startup investments in Singapore, Indonesia, Malaysia and Thailand, respectively.

Figure 2: Funding for start-up businesses in Southeast Asia (Tech in Asia, 2017)

Government role and creation Ecosystem to support startup businesses

         Unlocking limitations in the past to create a suitable ecosystem that can support the start-up business is another key factor in driving the policy towards startup nation. In the past, the government has initiated policies on a variety of projects such as

- Updated the new law to be able to register each juristic person To meet the needs of single entrepreneurs

- Improve business collateral law Previously, there must be guarantees or mortgages changed to use of "ideas" or registered intellectual property. Can be used as business collateral

- There are tax incentives or investors' incentives

- Build an ecosystem that will support funding sources Support sources include Incubator, Venture Capital, Crowdfunding.

- Encourage startups to login more For transparency, standards and attracts investors

- Formed a National Startup Center by the Ministry of Finance to include VCs and Incubators.

- Develop tools and exit channels through the capital market as a way to capture added value for entrepreneurs and investors. Resulting in working capital and investment going on continuously

- Modify academic programs to meet the needs of startups

            The Office of Science Policy National Technology and Innovation (STI) in collaboration with the Thailand Tech Startup Association (TTSA) has revealed the results of the Thai Startup Ecosystem Survey 2017 or The Thai Startup Ecosystem. Survey 2017 found that there are still factors that hinder business operations that, aside from regulatory and governmental obstacles, are the shortage of needed personnel of startups, with the top 5 ranking Staff shortages are one of the programmers and technology experts. Sales and customer relations staff Marketing staff Developer or business analysis Including designers and experts in design, respectively, which the government and universities must work together to accelerate the creation of talented personnel to continuously meet the needs of Thai startups. In order to create technology experts to enter the industry will benefit the startup group in the long run. (,2017)

Using technology with the logistics startup business

Figure 3: Funding for Startup Sub-Sectors in Thailand, classified annually (Jenpasit P., 2017)

The rapid growth of E-commerce businesses, FinTech and E-logistics, reflects the use of technology to connect people, organizations and resources into a platform-based networking process.

Online to increase economic value Especially in the E-logistics startup business. In Thailand that conduct business through online platforms To provide more services to users

Uber, an intermediary connecting people or groups that are looking to use a bus service and drivers looking for passengers.

            Giztix provides Platform E-Logistics, a Biztech product developer, with a high-priced ERP Logistics system that allows product owners to use it for free. Promote trade Increasing sales, attracting customers and changing shipping operators from Traditional to E-Logistics on the E-Logistics Marketplace, product owner or Shipper. And carrier Can post to buy and sell together. There is a Match Match System for buyers and sellers. Chat system to be able to negotiate. Send quotations instantly on the Marketplace or talk directly between Product owner And transportation service providers (Marketing oops, 2016)

            Shippop provides a delivery service. Online transportation booking And online parcels Wishes to provide services to customers who want to use the convenient transportation system You can choose to reserve the delivery company as you wish. Including being able to compare the price of each service Having a special discount The system can provide transportation advice that is appropriate to the needs of users. Including users who are able to pay for shipping via online transaction systems Create a package cover that can be printed from the system instantly. Parcel tracking service There is a pick-up service provided without having to travel to use the service by yourself or queue in line (Waraporn Thian-ngeon, 2017)

            Flexport, Port Logistics, Startup Use product tracking technology From the pier to the receiver's hand The track will be installed for the product with electronics starting from scratch. From the receipt of the goods from the source to the recipient's hand (Brandinside, 2560)

            MyCloud provides complete logistics services. From product storage, transportation, placement, as well as providing services for a wide range of products From products that must be stored for a long time To goods that require fast transportation Is a transportation and storage service that has changed the service pattern from the past And becoming increasingly in demand among online sellers (Pawe Sirimai, 2017)

Guidelines for Logistics Startup Adjustment

            With the development trend of Thai startups, will be linked to the E-logistics system. The logistics process is one of the tools to drive the backyard management to support and facilitate the delivery of the whole product. Department of International Trade Promotion Ministry of Commerce Therefore has continuously developed and extended the knowledge to the logistics operators By having a contest project "Excellent Logistics Management Award (ELMA) for promoting entrepreneurs to have efficient logistics management. Can be a model for other operators And this year, the award-winning company presented the concept of logistics management Which will be a great way for modern startups to learn

Bangkok Archives Limited provider of comprehensive storage and business information management services. Warehouse management By the outstanding company Is in the service design by adding Value Added Services by expanding the service to receive, store and manage electronic documents in the form of Hosting with Livelink Enterprise system, which is the service design and technology that best meets the needs of customers. When customers have problems Will make it possible to search documents and solve problems for customers quickly. In addition, most of the customers are in the financial business group, so the company attaches great importance to security standards for document retention. Therefore is trusted and has customers using services from the company Continuously from the beginning of the business to the present.

Thai Somdej Service Co., Ltd., a customs clearance service provider, has more than 48 companies. The strength of the organization is to use Intelligent Customs Clearance Technology (ICCT) to operate. The company invented the software itself. Makes it possible to develop a customs clearance management system To help solve complicated document procedures for easier management Reduce the company's cost And respond to the needs of customers quickly Especially the e-commerce customers In which there are many goods that need to be made through customs The use of such technology Considered to help reduce the chance of mistakes And make it able to serve customers faster

The development of logistics startup and perishable goods transportation

            Happy Farm Application (Farmsuk Application) "Application for shopping for agricultural products To allow Thai people to consume products from farmers Direct manufacturers "is a source of knowledge and technology. To raise Thai farmers to the digital age By encouraging farmers to create a stable, sustainable career with the mechanism of exchange of knowledge Access news Linking the application of modern tools to practical applications Including the development of the process from the production to the distribution of products Through Happy Farm Application by using technology combined with IoT, both being called Precision Agriculture and having an online store As a way for farmers to be able to sell products through the E-Marketplace, Farmsuk store for 24 hours. The service of this application It starts by inviting small-scale farmers to open an online agricultural product store on the Farm Suk Shop platform.

Can sell products by themselves No need to go through middlemen, which this application is helping to manage the distribution channels. Freight Payment Including comments for quality and service improvements. In addition, technology is transferred by IoT applications. To help manage the farm to become a smart farm (Smart Farm or Intelligent Farm) from planting, watering, fertilizing and weather forecasting To save the cost of cultivation As well as providing knowledge on product design to increase product value and interesting product presentations using photographic techniques.


            National development to start-up nations It is the goal of stimulating economic growth by promoting the strength of Smart Enterprise to be able to compete in the world market. Which modern entrepreneurs need to use innovation as the business driver (Innovation-driven Enterprises / Startup). Innovation is considered important in the development of the country to Thailand 4.0 in accordance with the government's policy. Which the government is ready to support the future startup business of the country Both businesses that are strong, such as the health service, food, culture sectors in the future have the opportunity to grow continuously. And other businesses such as Deep Tech and Med Tech. However, in order to start a nation, Thailand must have to develop an ecosystem based on cooperation from all parts, both domestic and abroad. Startups must adapt to the Next Generation in order to be an innovation leader and bring Thailand to the goal of being a developed country.