Thai Food Group Plc expects to save 5-10%/year by operating its own trucking company.

Thai National Logistics (TNL) will handle transportation, setting up and running distribution centres for delivering hog and poultry feed to company and contract farms, and delivery of raw materials from seaports to production warehouses.

Currently, TFG bears logistics costs of over 600 million baht/year, or 3% of its sales revenue. With logistics expenses continuously rising in line with business growth, the new operation is expected to shave up to 10% off of the annual cost of moving products.

TNL will deliver both livestock and processed meat to customers as well as transport live animals from farms to slaughterhouses.