On May 9, 2025, Siemens Digital Industries Software unveiled a pioneering digital logistics solution aimed at transforming the food and beverage industry in Southeast Asia. This initiative comes at a time when the global food and beverage market is undergoing rapid changes, driven by a new generation of consumers who prioritize transparency, sustainability, and personalized experiences.
According to Isabell Chong, Head of Digital Industries at Siemens ASEAN, the ASEAN region is poised for substantial growth in the food and beverage sector, with projections indicating an increase from $667 billion today to $900 billion by 2028, reflecting a compound annual growth rate (CAGR) of 6.9%. This growth is supported by the region's robust economic resilience, a large population, and an expanding middle class that is increasingly health-conscious.
Chong emphasized that the shift towards sustainability is a critical factor influencing the industry. Consumers and regulations are pushing manufacturers to reduce water usage and carbon footprints, while also demanding recycled materials and a transition to 100% clean energy factories. Local sourcing and ethically produced products are gaining popularity, alongside the rise of startups focusing on plant-based proteins and alternative proteins, which require smart and interconnected logistics systems for efficient and rapid delivery.
In response to these market dynamics, Siemens is integrating advanced technologies such as AI, Cloud, Edge Computing, and 5G into supply chains to enhance efficiency and better meet customer demands. The company's digital logistics solution aims to streamline operations and reduce waste, promoting sustainability across the supply chain.
The collaboration between Siemens and Thanagorn Vegetable Oil (TVOP) represents a significant milestone in this effort. TVOP has adopted Siemens Digital Logistic Software, specifically the Transportation Management System (TMS) built on the AX4 platform, to improve transportation management and freight cost calculation. This cloud-based Software as a Service (SaaS) solution allows for comprehensive visibility into the transportation network, enabling real-time tracking and efficient management of logistics operations.
Alex Teiuw, General Manager and Vice President of Siemens Digital Industries Software, noted that the adoption of this digital logistics platform is a crucial moment for Siemens in Southeast Asia. It not only showcases the tangible benefits of the AX4 solution in enhancing operational visibility and efficiency but also marks a new era for Siemens in bringing reliable digital logistics capabilities to one of the world's most dynamic supply chain regions.
Teiuw expressed pride in partnering with TVOP to drive this transformation and reiterated Siemens' commitment to supporting businesses in the region in unlocking their operational potential through digital technology.
Meanwhile, the IRPC (IRPC Public Company Limited) is also navigating the complexities of the global market. CEO Teod Gerarti announced the establishment of a "Crisis War Room" to closely monitor economic and market conditions amid ongoing global trade uncertainties. IRPC aims to strengthen its business by focusing on production efficiency, cost reduction, and comprehensive financial risk management.
IRPC's strategy revolves around two key approaches: Core Up Lift and Step Up & Beyond. The Core Up Lift strategy focuses on enhancing production processes in the petrochemical sector, emphasizing commercial excellence and expanding the specialty product portfolio, particularly in low sulfur diesel and medical-grade plastics. This approach aims to respond to the growing demand for high-quality products while optimizing costs and improving competitiveness.
In the first quarter of 2025, IRPC reported net sales revenue of 62.224 billion baht, a slight decrease of 1% year-on-year, primarily due to a 4% drop in sales volume. Despite this, the company is optimistic about future market trends, particularly in the diesel and petrochemical sectors, as limited crude oil supply and seasonal demand fluctuations influence pricing.
Additionally, SCBX (SCBX Public Company Limited) has launched its "SCBX AI Outlook 2025" report, highlighting the transformative trends in artificial intelligence for businesses in Thailand. The report identifies four key trends reshaping the business landscape: the evolving dynamics between open and closed AI models, the emergence of smaller and more versatile AI systems, the rise of agentic AI capable of autonomous decision-making, and the pursuit of Artificial General Intelligence (AGI).
Kuntee Voraputhisath, Chief Innovation Officer at SCBX, stated that the company aims to derive 75% of its revenue from AI by 2027, with a commitment to reskill 15% of its workforce to become AI talent. This ambitious goal reflects SCBX's dedication to becoming an AI-first organization, emphasizing the importance of integrating AI technologies across its operations.
SCBX's R&D Innovation Lab will collaborate with various stakeholders to drive innovative AI technologies, including the development of the "Typhoon Thai LLM," which aims to enhance knowledge management in healthcare and support legal inquiries through AI-driven chatbots.
As the food and beverage industry, petrochemical sector, and AI landscape continue to evolve, companies like Siemens, IRPC, and SCBX are at the forefront of innovation, leveraging technology to meet the demands of a rapidly changing market. Their initiatives not only reflect the shifting priorities of consumers but also signal a broader trend towards sustainability, efficiency, and technological advancement in Southeast Asia.
