John Keells Logistics optimistically continues empowering supply chains

Since inception in 2006, John Keells Logistics (JKLL), a subsidiary of John Keells Holdings PLC (JKH), has demonstrated innovation, agility, resilience, and a customer centric approach. Despite unprecedented challenges, such as the COVID-19 pandemic and the economic crisis, the company is geared to charge ahead while exceeding expectations of the clients and supporting the nation at large. JKH reported an EBITDA of Rs. 13.33 billion in Quarter 1 of the financial year 2022/23—an increase of 180% compared to the corresponding period of the previous financial year, of which 35% was contributed by JKH’s Transportation sector in which JKLL plays a prominent role along with the outstanding performance of other entities in John Keells Group’s Transportation sector.

Reflecting on the performance and future outlook, JKLL Chief Executive Officer and John Keells Group Vice President Randula Chandrarathne said, “The John Keells Group endeavours to ensure transformative growth in the years ahead. Not only the most recent quarterly achievements, but the growth momentum within the transportation sector of the Group also stands testimony to this. Going forward, the Group intends to focus more on the ports, shipping, and logistics sphere to further strengthen Sri Lanka’s position as a global trade hub which is reflected in its recent investments. 

He added, “While ports alone will not lead Sri Lanka into prosperity within the South Asian maritime region, the overall supply chain network in Sri Lanka and the competence of its players will play a major part in the path to success. Hence, JKLL which thrives on the Group’s increasingly strong foundation will continue to seek new opportunities and evolve with agility.”

As a leading logistics services provider in Sri Lanka with a keen sense of seizing opportunities and demonstrated agility, JKLL has been continuously expanding its focus on supporting export operations of global customers. Sri Lanka’s strategic location plays a major role in making Sri Lanka appealing for global shipping and supply chain operations while the potential and the drive to enhance Sri Lanka’s maritime and logistics capabilities are immense. The John Keells Group’s logistics, terminal, bunkering, port agency and freight forwarding businesses under the Transportation Sector are continuously making substantial contributions to materialise such enhancements.  While maintaining strong customer relationships, JKLL strives to further empower the supply chains of its clients by optimising costs and enhancing the quality of the service through innovation and dexterity to pass benefits to its clients. As Chandrarathne describes, “JKLL has followed a multi-pronged approach in this regard and have taken measures to minimise and rotate fixed-term contract cadre within our Distribution Centres as operation volumes have reduced drastically. Consequently, this has decreased our dependency on external manpower, enabling us to improve service consistency. 

“Similarly, by adopting the INFOR Tier 01 Warehouse Management System, we have been able to gradually automate previously labour-intensive processes and enhance operational control and visibility across the entire value chain. There is a substantial drive towards minimising energy, water, and waste in line with the group’s guidance on sustainability and we have a keen focus on the adoption of solar energy within our business units. JKLL is focused on multiple initiatives such as paperless operations through mobile apps and cost-effective alternatives to storage materials like shrink wrap to reduce expenditure on consumables. A key highlight during these challenging times has been JKLL’s successful approach to managing the fuel crisis with zero disruptions to its warehousing and transportation operations, mainly by adopting MGO fuel sourced through the bunkering business of the group and by maintaining strong relationships with local fuel suppliers.”

In addition to ensuring customer satisfaction through innovative approaches, JKLL has also taken several measures to ensure employee welfare during the crisis. Chandrarathne explains, “It is no secret that supply chain management during these times requires extra effort by employees. Therefore, understanding that our people are the main assets, JKLL provided a uniform financial care package in the form of ex gratia payments to all employees in April 2022 in addition to the annual incentives and bonus schemes. This initiative that aimed to ease off the financial burdens in times of strife was further supplemented by salary increments and promotions. 

“Furthermore, JKLL aligned with John Keells Group’s commitments and culture on Diversity, Equity & Inclusion (DE&I) under the brand ‘ONE JKH’, one focus area for JKLL is increasing female participation in non-traditional operational roles. JKLL has also keenly safeguarded the interests of its external ecosystem by managing suppliers who are a vital component of the business. Initiatives such as early payments for SME suppliers prior to the agreed credit period have aided JKLL’s efforts to ensure business continuity in challenging times.”

While taking measures to increase customer satisfaction and strengthen employee welfare, JKLL fearlessly continues to make bold yet calculated moves with confidence despite the current business climate in Sri Lanka. According to Chandrarathne, “Out of all the JKLL strategic projects underway, two of them are among the largest contributors towards realising the future envisioned by JKLL especially in terms of market penetration. JKLL plans to activate two new warehousing facilities of 70,000 sq. ft. and 100,000 sq. ft. within the current financial year which will further compliment the supply chain requirements of our customers.”

With a solid vision and a roadmap in place, JKLL is poised to continue empowering its clients’ supply chains for decades to come. With its well-planned expansions—specially to facilitate global supply chain operations in Sri Lanka—and the optimism that fuels resilience and service excellence, JKLL is committed to supporting the operations of its clients, both local and global, while aligning with Sri Lanka’s priorities to overcome the current challenges and reach new heights.