GCH launches RM290 mln distribution centre

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KUALA LUMPUR: The new GCH Distribution Centre located in Sepang, was designed, constructed and equipped for the GCH Retail Group (GCH Retail) at an estimated cost of RM 290 million.It is currently functioning as the central distribution hub for three of the Malaysian leading brands, namely, GIANT, GUARDIAN and COLD STORAGE.

The distribution centre has a built-up space of 450,000 sq ft, which is equivalent to four Giant Hypermarkets.

According to the regional director of East Asia, Dairy Farm Int, Datuk John Coyle, who is also the owner of the GCH Retail (Malaysia) Sdn Bhd, the multi-million riggit investment will give a boost to the growth of the brands and put them even further ahead of their competitors.

He explained that the state-of-the-art distribution centre, which has helped reduce logistic costs for its suppliers substantially, was a result of the accelerated turnaround time of delivery trucks to the warehouse by as much as 50 per cent.

“We plan to invest further in our supply chain infrastructure. We are looking at building a distribution centre for fresh produce in the northern region as well as in the southern region as part of our continuous efforts to help reduce costs for our suppliers and our company,” said Coyle.

He told reporters at the recent opening that the company has allocated RM225 million to build three distribution centres in over a span of three years, whereby the distribution centres in the northern region and southern region will cost RM80 million each and another distribution centre planned in Simpang Pulai, Perak will cost another RM65 million.

He added that the investment in the distribution centre reflects GCH Retail’s confidence in the Malaysian economy and projects the company’s commitment to continue to invest in its brands as well as help the retail sector grow.

Coyle said, “GCH chose to build the facility at Sepang because of its strategic central location that is near both the cargo terminal at the Kuala Lumpur International Airport and the sea port at Port Klang which is easily accessible via the network of highways, which makes it the ideal logistics hub for the group.”

GCH had also invested RM27 million for a Warehouse Management System that is integrated to the SAP system in its stores, which added up to its approximate expenditure of RM290 million for the distribution centre in Sepang.

During the recent official launch of the distribution here, the marketing director for GCH Retail, Ho Mun Hao said, “We have been exploring the market effectively thus far and we are seeing the results. In West Malaysia, we are quite established,” and added that it also has a number of expansion plans in Kuching and Sibu.

He added that the nearest plans for East Malaysia would be the opening of the Giant Superstore in Kota Kinabalu, Sabah, early next month.

“The Giant to be opened in Kota Kinabalu will be a superstore, not a hypermarket concept. It will be roughly 25,000 sq ft in size compared with the bigger space needed for a hyperstore. It also means that the Giant will have things like clothes and so on,” he related.

When quereied regarding GCH Retail’s plans for further expansion in East Malaysia, Ho disclosed that with many discussions under progress, he can only reaffirm after it finalises its expansion plans in a meeting in East Malaysia by the end of this week.

He explained, “As of now, I can’t really confirm any plans taking place in East Malaysia. But rest assured, there will be some kind of news from GCH as we will be finalising the expansion plans for East Malaysia by the end of this week, after we conclude a meeting we will be having there.”

Also present at the GCH distribution centre to officiate the opening were Minister of Trade, Cooperatives and Consumerism, Dato’ Sri Ismail Yaakob, Deputy Minister of Domestic Trade, Cooperatives and Consumerism, Dato’ Tan Lian Hoe, Secretary-General in the Ministry of Domestic Trade, Cooperatives and Consumerism, Datuk Mohamad Zain Mohamad Dom, Jardine Matheson (Malaysia) Sdn Bhd chairman, Datuk Syed Tamim Ansari Mohamed, Gapurna Sdn Bhd managing director, Dato’ Mohamad Salim Fateh Din as well as the heads of departments from the Ministry of Domestic Trade, Cooperatives and Consumerism and NGOs.