Wednesday, May 31, 2023

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Dipped Products PLC opens automated central warehouse at Biyagama EPZ

Dipped Products PLC (DPL), a member of the Hayleys Group, recently commissioned an automated central warehouse facility at the Biyagama Export Processing Zone, to enhance its service delivery excellence to meet the critical global export demand.

The state-of-the-art new warehouse facility will enable DPL to consolidate storage facilities across its Hanwella, Kottawa and Biyagama factories, by streamlining operations, reducing transportation and logistics costs, and increasing visibility and control across DPL’s supply chain.

The extensively automated 23,000 cubic metre facility represents a new technological milestone for the company’s digitalization drive, and was commissioned by Hayleys Chairman and Chief Executive Mohan Pandithage

“Given the ongoing economic challenges, it is now more imperative than ever to strengthen Sri Lanka’s position as a vibrant export hub by developing local products to the highest global standards.

As a leading global player in the protective hand wear industry and a member of the Hayleys Group, we take pride in DPL’s continuing contributions to our nation’s development,” Dipped Products PLC Managing Director Pushpika Janadheera said.

“Our latest investments are part of our strategy to expand global reach, ensure supply chain resilience, and enhance service delivery to our key export markets. With our centralized warehousing facilities, we are also optimizing our service capacity, speed, and customer value to help secure our next wave of growth,” he added.

Equipped with a state-of-the-art US National Fire Protection Association (NFPA) compliant safety system which covers 4,200 pallet racks, the new facility provides DPL with an extensive storage capacity.

Combined with robust technologies including modern articulated truck technologies and product management systems, and an integrated data tracking system that streamlines DPL’s logistical operations, that enables systematic tracing of containers from the loading point to the pallet rack.

Moreover, the new central warehouse significantly reduces the need for internal transportation, reflecting a 30% decrease in inter-factory transport related Green House Gas (GHG) emissions.

Dipped Products Plc producing rubber gloves is seeking new export markets as demand from Western buyers falter, an official said while domestic costs are also rising after a fall in the currency Managing Director, Pushpika Janadheera said.

He said “We are in the process of expanding to the Middle East, Asia, Africa, and India. We have already started setting up the facility in the Middle East – a sales office.”

There was strong demand for exports from Asia as the US and other Western nations printed money, straining supply chains.

The supply chain delayed in turn made buyers run up inventory. The Fed and the ECB is now tightening monetary policy taking away excess demand after inflation soared and demand for many products are falling.

“The other reason is, they are releasing their excessive stocks, so the purchases are not for us,” Janadheera said.“Therefore, it has an impact whole glove industry and other industries as well.”

Sri Lanka’s export firms initially benefited as the rupee collapsed from 200 to 360 to the US dollar and wages and utility prices did not go up. However, eventually utility prices catch up. Wages also usually rise over time.

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