Japanese food and beverage company, Kokubu Group has formed a perishables logistics joint venture with Singapore’s Commonwealth Capital Group, to focus on the Southeast Asian market.
The new company – Commonwealth Kokubu Logistics (CKL) – will provide end-to-end supply chain solutions to food retailers and food services firms, in Singapore and the region. These include all aspects of food supply chain management from pre-production inventory control to temperature-logged warehousing and last mile delivery.
Kokubu runs 279 food logistics and distribution centres in Japan, delivering items from 10,000 food manufacturers to 35,000 customers, including hotels, restaurants, cafes, supermarkets and convenience stores.
The new company is reviewing potential sites in the region to build a network of state-of-the-art cool chain logistics centres.
Andrew Kwan, group managing director of Commonwealth Capital Group, says: “We have now set our sights on establishing similar facilities across all the major cities in Southeast Asia.
“This will allow us to offer our signature cold-chain logistics services through our own network of contiguous facilities in all the major cities.
“I cannot over-emphasise the strategic and economic importance of ASEAN markets within the emergent Indo-Pacific to a Singapore company, given the geopolitics of our world in recent times. Our expansion into one of the fastest-growing regions of the world is timely, to say the least,” Kwan adds.
The CKL joint venture will also tap Kokubu Group’s existing partnerships with e-commerce players in Japan to roll out similar capabilities in Singapore and the rest of Southeast Asia.
The joint venture will also use technologies such as blockchain, artificial intelligence and the Internet of Things in its supply chain, enabling products to be traced from the farm to the end user, among other benefits.