The head of SET-listed Thai Union Group is urging businesses to prioritise operational agility amid global uncertainties.
Chief executive Thiraphong Chansiri said integrating sustainability into business practices is essential, warning that companies ignoring this trend may see their market opportunities diminish.
The global landscape has changed dramatically, affecting economic conditions, customer behaviour and demographics. Unlike in the past, when certain regions could weather downturns while others struggled, he said this is likely the first time all markets worldwide are facing economic challenges simultaneously.
The world has evolved, with the current circumstances "unimaginable", said Mr Thiraphong.
He advised business operators to prepare for smaller production batches, more diverse product offerings, and the adaptation of product management strategies.
"Agility is crucial in this environment. Those who can adapt faster are more likely to succeed," said Mr Thiraphong.
Thai Union has continuously improved its cost management, diversified its production network, and adopted an agile operating model, he noted.
In 2024, the company began this transformation, aiming for simpler, leaner and faster operating processes.
Using artificial intelligence and leveraging big data is crucial for today's operations, said Mr Thirapong, adding technological transformation can help businesses become leaner, often by optimising workforce efficiency.
He recommended business operators prioritise profitable sales over sales volume.
SUSTAINABILITY KEY
Although raw material costs are rising and sustainability initiatives could potentially increase expenses, Mr Thiraphong urged businesses to focus on the long-term benefits of implementing sustainable practices.
"Some argue that sustainability initiatives increase costs. But if all players adopt these measures, costs will rise across the board. The difference only arises in comparison with those who have not yet implemented such practices," he said.
Sustainable approaches can also reduce production costs by lowering electricity and water consumption and minimising waste.
In addition, companies that do not adopt sustainability practices may attract fewer buyers, said Mr Thiraphong.
"Companies that forgo sustainability efforts risk limiting their client base, selling mainly to small and medium-sized enterprises [SMEs] that do not require such standards, or to a small number of countries," he said.
Financial institutions now offer substantial loan options for businesses committed to sustainability.
Mr Thiraphong advised SMEs to continually assess their competitiveness and improve their operations.
Rather than waiting for support from the government or associations, he encouraged SMEs to initiate shifts to make their businesses more resilient.
