By Richie Lin    Photo：CANVA

Thailand has gradually become one of major manufacturing countries after worldwide corporations began to understand the importance of supply chain diversifications. Since joining the WTO in Year 2000, China has become the factory of the world because of the unparalleled power driven by governmental initiatives, substantial labor forces, and foreign investments and technology. It created a most complete supply chain in one single country in the history. However, the ongoing competition between China and USA pushed those have factories in China to evaluate seriously if they should move or create another factory outside of Chiha if their products are mainly sold in the United States. Therefore, we have seen customers looking for other suppliers in Southeast Asia countries. Under this trend of relocating supply chain from China, Thailand has steadily established itself as a key player in global supply chains for products like tires, solar panels, cat and dog foods, and furniture. For example, products under HTS Code 940320 — metal furniture such as tool storage, storage cabinets, storage systems, — are increasingly produced in Thailand for export markets.

According to research made by world bank wits.worldbank.org, total exports of Thailand under HTS 940320 in 2017 were $60.18 million and United States was the top destination, which received $19.78 million. In 2023, total exports skyrocketed to $155.66 million, and in the meantime exports to the United States alone reached $130.88 million, representing almost 84% of total export volumes. In just six years, export value nearly tripled, highlighting Thailand’s rapid expansion in metal furniture production and its increasing role in the U.S. market. This reflects a broader trend of diversification away from China, as multinational companies seek alternative manufacturing hubs across Southeast Asia.

Suppliers and buyers all face the challenge of multiple points of origin and multiple points of consumption. They need an all-around logistics provider to provide logistics from multiple countries to multiple countries including pick up, customs clearance, freight forwarding, warehouse management and last mile delivery. This logistics company must have full-fledged data, knowledge, experiences and networks to provide such a complicated cargo movement. Furthermore, a total logistics provider must also have well-designed IT system to provide 24 hours online tacking to track each purchase order transparently, and VMI to provide real time products in/out and inventory in different warehouses. Supply chain will be increasingly complicated because China can no longer be the only manufacturing site in the world and the consumption will take place in several countries. Customers must utilize total logistics providers to optimize the flow of goods from the multiple points of origin to the multiple points of consumption in the future.

Please contact richie_lin@tgl-group.net if you want to consult logistics in Thailand.

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