Open the book, Innovation “Menam Mechanika”, the original Thai smart warehouse system

Innovation is not an easy thing to develop, but “Menam Mechanika” by Ms. Rungrat Sirirattanaphanich, the company’s Managing Director, has overcome all obstacles and challenges until it has successfully established itself as the original Thai smart warehouse system. One of the important factors behind the innovation that has transformed the Thai logistics industry is the support from the Department of Land Transport.

Inspired by Germany, the creation of the “Menam Mechanika”

Ms. Rungrat explained the origin of Menam Mechanika Co., Ltd., saying, “It started from attending a trade fair in Germany about 20 years ago and seeing that the logistics industry at that time had already advanced a lot. This was due to the problem of labor shortages, the speed of service, and the development of various cutting-edge technologies in this area. It was also clear that Thailand was still lagging behind in this area. So I thought there might be an opportunity, so I came back to open Menam Mechanika in 2001 to seriously do business in the ASRS system or Automated Storage/Retrieval System. We are a full-service system installer for smart warehouses, taking care of everything from design to after-sales support.”

In addition, we also provide other automated storage system services besides ASRS, such as Forklift (ETV), Automated Guided Vehicle (AGV) and Conveyor System. We provide all types of conveyor belts and robots, as well as sorting system, integration system (integrated control system) and material handling services.

“เมื่อราว 20 ปีที่แล้ว ภาพรวมของอุตสาหกรรมโลจิสติกส์ในบ้านเราทุกอย่างยังคงทำด้วยแรงงานคนเป็นหัวใจหลัก และโลจิสติกส์เป็นต้นทุนขนาดใหญ่ของประเทศไทย และยังไม่มีใครคิดว่าจะมาเป็น Key to success ของธุรกิจได้เลย เพราะในอดีตถูกตีเป็นค่าใช้จ่าย ไปแสดงอยู่ในงบการเงิน ผู้บริหารส่วนใหญ่ไม่ได้ให้ความสำคัญ ไม่ได้มองว่าเป็นเครื่องมือหรือโซลูชั่นในการสร้างรายได้เพิ่มให้กับบริษัท แต่ปัจจุบันโลจิสติกส์มีความรวดเร็ว ต้นทุนในการแข่งขันก็ดีขึ้นมาก ทั้งยังเป็นจุดชี้เป็นชี้ตายความอยู่รอดของกิจการ ยิ่งเมื่อเกิดโรคระบาดโควิด-19 เป็นกลยุทธ์หลักขององค์กร ทั้งๆ ที่ เมื่อ 20 ปีที่แล้วไม่มีใครพูดถึงหรอกว่าแผนโลจิสติกส์จะต้องเป็นหนึ่งในแผนธุรกิจหลักของบริษัท แต่เพียงแค่ในรอบ 20 ปี จากการที่พฤติกรรมของผู้บริโภคเปลี่ยนแปลงไปจากเดิมจากรวดเร็ว มีการสั่งซื้อสินค้าออนไลน์มากมาย ทำให้พลิกโฉมหน้ากิจกรรมด้านโลจิสติกส์ไปอย่างคาดไม่ถึง จึงเป็นการเพิ่มโอกาสให้กับบรรดาธุรกิจต่างๆ ที่เกี่ยวข้องด้วย”

Penetrating the “Logistics Industry”, a large market that is sweet and continuously growing

With her background as an engineer, Rungrat graduated from the Faculty of Engineering, majoring in Industrial Engineering, Chulalongkorn University, she has the knowledge, expertise, and clear understanding of the importance and opportunities of the logistics industry. Logistics is a very large market with high business opportunities. She likes to do new things and loves innovation, so she is very familiar with it. She believes that if she does these things, the chance of success should not be too far out of reach.

Meanwhile, data from the Office of Trade Policy and Strategy (OTPS) revealed that as of the end of 2021, there were 36,733 logistics businesses in Thailand registered with the Department of Business Development, with a foreign investment value in the logistics business of 48,743.73 million baht, or 10.2% of all investment in the logistics business group.

The top three business groups with the highest number of business openings were port facilitation, pipeline transportation, and customs brokerage, accounting for 14.2%, 11.7%, and 11.4% of the total number of new logistics businesses, respectively. The land transportation and parcel delivery businesses showed significant growth.

The Office of Industrial Economics assesses that Thailand’s logistics sector has continuous potential and still has a lot of room for expansion in 2022, following the recovery of consumption, especially the export of fresh fruits from Thailand to China, including durian, mangosteen, and longan, which are golden opportunities for temperature-controlled transportation (Cold Chain Logistics).

Don’t do business in a casting a wide net. Focus only on areas you are good at and have expertise in.

One of the key points of logistics is “Intelligent Warehouse Management System and Complete Automation System”. Since logistics is in every supply chain, when we talk about logistics, we must also understand the supply chain. The supply chain is involved from the beginning of production until it reaches the consumer. Logistics is every step that takes us from the first step to the various steps until the end of the supply chain. But Ms. Rungrat said that Maenam Mekanika does not aim to be a logistics company that operates from the beginning to the end because the entire supply chain is very large. Therefore, it chooses to focus only on the part that has the ability, expertise, and that Thailand still lacks, which is “Intelligent Warehouse Management System and Complete Automation System”.

For developed countries, there have been intelligent warehouse management systems and complete automation systems for a long time, with an estimated share of up to 70%, while traditional warehouses account for only 30%. However, in Thailand, the share is inverse, and the share of traditional warehouses may be only 20%. They only need a roof to protect from the sun and rain, but the activities that take place in the warehouse are driven entirely by human labor. Therefore, this market still has a lot of opportunities for continuous growth in Thailand.

ขนส่งด่วนมาแรง ผนวกปัจจัยหนุนจากโควิด-19 ดันคลังสินค้าอัจฉริยะพุ่ง

“ตลอดระยะเวลาที่ผ่านมา ความท้าทายซึ่งเป็นอุปสรรคใหญ่หลวง คือ มักจะเกิดคำถามอยู่เสมอว่าการลงทุนในด้านนี้จะคุ้มค่าจริงหรือไม่ อีกทั้งผู้บริหารจำนวนไม่น้อยยังขาดความเข้าใจ และวิศวกรส่วนใหญ่ไม่มีทักษะในการสื่อสารเหมือนกับนักการตลาดที่จะสื่อสารให้กับผู้บริหารตระหนักถึงความสำคัญของคลังสินค้าอัจฉริยะได้ เราจึงต้องใช้เวลามหาศาลในการสื่อสารให้กับทุกแผนกในองค์กรที่เกี่ยวข้องเข้าใจถูกต้องตรงกัน”

ปัจจุบันอุตสาหกรรมส่วนใหญ่ในประเทศไทยยังใช้คลังสินค้าแบบดั้งเดิมอยู่ ไม่ว่าจะเป็นซูเปอร์ไฮเทคหรืออุตสาหกรรมยานยนต์ อุตสาหกรรมเวชภัณฑ์ ฯลฯ จะมีเฉพาะอุตสาหกรรมที่เกิดใหม่ร้อนแรง เช่น ขนส่งสินค้าด่วน เพราะตลาดเติบโตเร็วแบบก้าวกระโดดไม่สามารถหาแรงงานคนได้ทัน ผู้ประกอบการทุกรายในอุตสาหกรรมนี้จึงใช้คลังสินค้าอัจฉริยะกันอย่างแพร่หลาย แต่น่ายินดีที่ปัจจุบันอุตสาหกรรมต่างๆ ที่กล่าวมาก่อนหน้าก็เริ่มหันมาให้ความสนใจที่จะใช้คลังสินค้าอัจฉริยะมากขึ้นเป็นลำดับ เพราะผู้บริหารหลายรายเริ่มเปลี่ยนมุมมองว่าหากตอบสนองต่อความต้องการของลูกค้าหรือผู้บริโภคไม่ทันการณ์ ย่อมหมายถึงการสูญเสียโอกาสในการขายและรายได้อย่างน่าเสียดาย ทำให้เล็งเห็นถึงความสำคัญของคลังสินค้าอัจฉริยะว่าไม่ใช่ค่าใช้จ่ายที่บริษัทต้องแบกรับโดยไม่เกิดประโยชน์

Express delivery is booming, combined with support from COVID-19, pushing smart warehouses to surge

“Throughout the past, the biggest challenge and obstacle is that there are always questions about whether the investment in this area is really worthwhile. In addition, many executives still lack understanding, and most engineers do not have the same communication skills as marketers to communicate the importance of smart warehouses to executives. Therefore, we have to spend a lot of time communicating to all relevant departments in the organization to have the correct understanding.”

Currently, most industries in Thailand still use traditional warehouses, whether it is the super high-tech or automotive industry, the pharmaceutical industry, etc. There are only new hot industries such as express delivery, because the market is growing rapidly and cannot find enough workers. Therefore, all entrepreneurs in this industry widely use smart warehouses. But it is fortunate that the industries mentioned earlier are starting to pay more attention to using smart warehouses because many executives are starting to change their perspective that if they cannot respond to the needs of customers or consumers in time, it will mean a loss of sales opportunities and income, which is a pity. Therefore, they see the importance of smart warehouses as not being an expense that the company has to bear without benefit.

Thai Smart Warehouse Solution stands out for its close-knit service.

Since smart warehouses must be continuously developed to be in line with the business growth direction, it is a golden opportunity for Thai smart warehouse solutions because they understand customer needs better than foreign smart warehouse solution providers because they are always close to customers. Although some foreign entrepreneurs have communication partners, they are not friends who travel together. When machinery or solutions are damaged and need to be repaired, it will cause complications, especially in providing timely services. Importantly, when customers want to expand their business, from being together closely from the beginning, they understand the market conditions and customer pain points very well. This allows Thai smart warehouse solution providers to provide advice and help think about what should be added or further developed.

Highlighting “Innovation”, bringing smart warehouse solutions and complete automation systems to solve problems for customers.

Menam Mechanika is the first Thai operator to provide this service for over 20 years, so it knows and understands the problems of smart warehouse systems and complete automation systems very well. From the accumulated experience, including the expertise of technicians who have been trained and improved their skills to keep up with various technologies, as well as Menam Mechanika’s unique innovations, it has gained the trust of many customers. There are customers in various industries such as e-commerce, distribution centers, food and beverages, air freight, consumer goods, IT and applications, cold storage and freezers, post and parcels, medicine and medical, including automotive storage and automotive industries, etc.

“We do not buy anyone’s solution and modify it. Instead, each solution is developed and designed specifically for each customer. We analyze customer data to find shortcomings and problems in order to present the right solution to customers. It will be a hybrid to make investment affordable and suitable for the financial status of Thai entrepreneurs, especially SMEs.”

ASRS turning point in Thailand, no need for foreign systems

Although smart warehouses have a higher initial investment value than traditional warehouses, currently, since ASRS systems can be produced in Thailand, their value is lower than in the past when they relied solely on imports.

“In the past, the obstacles that prevented the smart warehouse system and fully automated system in Thailand from growing as much as they should have been that 100% of the technology for the ASRS system had to be imported, resulting in high project values ​​and difficult cost control. In addition, it took a long time to recover the investment, so it was not popular. Meanwhile, maintenance or repairs were delayed because they had to wait for technicians who traveled from abroad. Furthermore, there was a shortage of experts in all fields, including mechanical, electrical, civil engineering, and program development.”

“Not only that, it also reduces the area by more than 2 times, greatly reducing Intra logistics and reducing the cost of smart warehouses by no less than 30%, resulting in a break-even point of no more than 5 years. Importantly, it also helps with accuracy and speed. But how much the cost can be reduced depends on each customer because each customer has different problems. But no matter how much the cost is reduced, the cost can be reduced by no more than 100%. What is more important is the opportunity to sell and the opportunity to generate income. From the information that appears in real time, customers can immediately be informed that the desired products are ready to be shipped. There is no need to waste time checking the stock and searching for products on the shelves. ASRS clearly shows that speed is truly God.”

In addition, Ms. Rungrat confirmed the benefits of ASRS that the faster the business grows, the break-even point will be shorter and shorter, with a break-even point of no more than 5 years. Importantly, using this system does not only reduce manpower, but also reduces time and the chance of loss. Products will be taken out in order, first in, first out, last in, last out, always according to the locked program. However, if it is manpower, it will be easy to do, which makes the chance of errors high.

NRCT helps shorten the time for innovation production, making Thai researchers’ dreams come true

It is well known that most research in Thailand, even though it starts with a good idea, often ends up on the shelf permanently. However, from the mission of the National Competitiveness Enhancement Fund Management Agency (NCRP), it is considered an important part in transforming research results into practical innovations, just like the research results of Menam Mechanika, which can be transformed into an ASRS innovation that is good and efficient for the first time in Thailand.

“The first research result from the BPK fund of Maenam Mechanica is the development of a crane to replace the forklift to pick up products and send them to the various slots on the shelves by itself. From the written program, it is very intelligent in its operation. Previously, we imported this crane from abroad, but now it is an innovation that we can make ourselves in Thailand.”

“In addition, another proud research result from the BPK fund is the blue rack designed with software by King Mongkut’s University of Technology Thonburi (KMUTT). How can we tell what size the rack should be in order to support the weight of the desired product without collapsing? In the past, we did not have anyone who could calculate, but now everything has been turned into software. People who do not have knowledge in this area can use it easily and without complications. Just enter the data of how many shelves you want to put the product on and how many kilograms per shelf. Then this application will calculate the size of the rack to use. Then it will be manufactured and installed to ensure maximum safety. At the same time, there is software to control the entire system, which is the heart of it. This entire research result took about 2.5-3 years. Each year, there are more complex developments and more depth of application. More and more machines are being assembled and the systems are getting bigger and bigger. For example, in the first year, we developed a low crane of only 10 meters, but now we are developing a crane as high as 24 meters, which is as high as a 10-story building. This project is being done in collaboration with the Department of Land Transport under the strategic plan (Spearhead) in Phase 2, which will be completed by 2022 to support large-scale smart warehouses with a large number and variety of products.”

“Not only that, if the product is stored and cannot be found, it will become a big problem that is difficult to solve because the product that cannot be found will become expired products, become waste. Especially if it is food and beverage, it will be damaged very badly, losing the opportunity to sell, losing income. But with this software that is designed for first in/first out, in just 1 minute, you will get the desired product. The forklift will automatically search for the product. There is no need for people to search for the product. Therefore, when compared to the old way of searching for products, it takes twice as long. It is also almost 100% accurate. Never put the wrong item. The old method cannot be 99% accurate.”

Ms. Rungrat gave a clear example of how to use this innovation, saying, “Online sellers sell very well. It may take 7-14 days to deliver products, but if we use this system, it only takes 1-2 days for the products to reach the customers. Because when the order is received, the forklift will go to find the products itself. Then, it just packs and delivers the products to the customers. The process is very short like this.”

In addition, good cooperation with DDPM continues. Most recently, Assoc. Prof. Dr. Siri Chaiseri, DDPM Director, joined the press conference to launch the smart warehouse, which is a success from Spearhead’s research on economics, on the issue of robotics and automation plans and smart logistics systems, “Automatic Storage and Retrieval System: ASRS”, under the collaboration of the Department of Industrial Promotion or DIPROM, Western Digital Storage Technologies (Thailand) Co., Ltd., Agility Co., Ltd., the National Competitiveness Enhancement Fund Management and Administration Unit (DDPM), King Mongkut’s University of Technology Thonburi, Menam Mechanika Co., Ltd., the National Science and Technology Development Agency (NSTDA), the National Higher Education, Science, Research and Innovation Policy Council (NSTDA) to drive the development of integrated warehouses and automation systems.

Which businesses should use smart warehouse systems and complete automation?

The result of using ASRS system is that it can be applied to every business. It is easy to use, helps increase productivity and efficiency of warehouse management, reduces the time for sorting goods, and the work is completed quickly. It also helps reduce the problem of using complex machinery, creating opportunities for the business to grow rapidly. It has a high security system and can respond to the needs of the business quickly. Importantly, the information is accurate, without errors, and can be accessed and processed remotely.

Ms. Rungrat suggests that businesses with relatively stable sales, with income in the tens of millions or more, or from 20-30 million per year or more, are suitable for investing in ASRS systems. However, if it is a newly opened business or an SME with a clear income but is confident that it will grow well, it is also possible to invest.

Startups need to be patient, learn to fail, and never give up on getting back up.

As a senior startup owner in the past, Rungrat has some good advice for new startups: “From my experience as a startup owner in the past, when I first graduated, I opened a company called Menam Deco, which used stainless steel to make home decorations, but it failed. Therefore, startups must know how to fail.”

“Startups must do what they love, have passion, be patient, and know how to make mistakes, fall down, and get back up. However, the new generation may lack these qualities. Therefore, do not cling to success that may not exist. Do not cling to textbooks. You must know how to adapt in every situation.”

“In addition, every business person needs luck, not just vision or talent. Not all PhD graduates are successful. Some people need the right timing and the right opportunity. They need to make the right decisions, have good friends, gurus, elders who give good advice, support and support each other, and lovely customers. Therefore, those who want to be successful in business need to rely on many factors combined.