Economic
Innovation

Innovation

0.3 million Baht
Innovative cost saving
performance

Management Approach

Innovation is a critical driver of sustainable business growth for the company. It has supported the company in becoming a prominent leader among consumer goods manufacturers and distributors in Thailand and the South East Asian region.

Osotspa prioritizes new product development that drives businessgrowth through the creation of ingredient formulation, packaging, processing, and new product application. The Company has implemented the Innovation management system to facilitate effective decision-making in innovative projects.

  • Consumer-relevance
  • Risk assessment and management
  • Investment
  • Management of other complexities
The Stage Gate Process is Osotspa’s internal stepwise process to transform ideas generated into commercial launches. Stage Gate Process These include Feasibility, Development, Implementation & Upscaling, Launch Preparation, and Launch. These are later followed by a Post-Launch review. The process can be simplified for less complex projects, ensuring optimal speed with disciplined delivery for each project.

Stage Gate Process

At each gate, there are GATEKEEPERS
  • Who form a cross-functional decision-making board for all projects executed under O-IPM. They make a Go / Hold / No-Go decision based on the project status and plans (e.g. Market Situation, Research, Finance, etc.).
  • Each project has a working CORE TEAM comprising a Project Leader and team members from all functions relevant to that project, such as Research and Development (R&D), Manufacturing, Quality, Supply Chain, Marketing, Trade & Sales, and Finance.

The CORE TEAM, each bringing a specific area of expertise, cooperates to move the project forward. They update the GATEKEEPERS with the latest business-critical information to facilitate Go / Hold / No-Go governance decisions at the Gates. Osotspa is committed to providing products that go beyond the basic needs of its consumers. We hope to inspire consumers to have healthy and sustainable lifestyles through the delivery of diverse products. We thus develop new formulations and employ cutting-edge manufacturing technologies to keep our brands ahead of the competition. We also draw on our industry experience and know-how accumulated over the past two centuries

We have refined our innovation infrastructure to ensure that our R&D investments are aligned with our business direction and overall growth. Osotspa’s main innovation and incubation facilities are the R&D Lab at the Huamak headquarters and the Innovation Center at the Thailand Science Park.Laboratory-scale facilities allow us to envision the journey of new products, from the development process in the lab to delivery to the store shelf. This avoids distrupting the main production process and helps save significant costs.

2022 - Performance highlights

New Product Development or Product Improvement

  New 8 products

  Improvement

  • Health & Nutrition 7 products
  • Packaging 12 products
  • Health Care & Personal Care 4 products

M-150

  • New shape and lightweight bottle
  • Reduced sugar, and 2x Vitamin B12

C-vitt

  • 0% sugar

PEPTEIN 4000 and PEPTEIN PLUS

  • Upgraded nutrition
  • Packaging material reduction

M-150 carbonated

  • New, exported abroad,
    to appeal to a younger generation

Highlights of the innovation
process and open innovation

Through collaboration with internal departments and business partners, the innovation process can substantially reduce cost of production. The innovation team serves as the focal point in monitoring the results and outcomes of the initiatives.

Mixing system efficiency improvement A collaborative project with Krones, a filling technology expert, and Limitech, a high shear mixing device expert.

Saved 2 months of design time and reduced risk by optimizing both high shear equipment selection and the design process. With Limitech’s deep experience ,andin-house process engineers the correct high-shear devices can be developed and fabricated within a short period of time.
Avoids 6 months of delay from redesign of a high-shear device. Apart from the results, Osotspa’s staff have benefited from experience and knowledge-sharing with the specialists
  • Reduce dissolution time & increase dissolution capability
  • Lower oxidation and vitamin degradation
  • Savings of more than 3 million Baht / year
  • Energy savings (550,000 kWh/year) and GHG emissions reduction (292.48 tCO2e /year)

Osotspa has expanded this collaborative success to our Myanmar operations. There, we have joined forces with KHS, which is highly experienced in mixing and filling systems, to implement a new high-speed mixing system.

This has resulted in energy savings to the tune of 680,000 kWh/year
  • GHG emissions reduction of 365.84 tCO22e /year
  • Cost savings of 2.43 million Baht/year.

Optimization of thermal profile

Our previous process for dissolving sugar used hot water temperatures of up to 80 oC. But with the new mixing parameters and a sequence of raw material addition that optimizes the liquid mixing profile for the dissolving process, sugar can be dissolved in ambient water temperatures.
By using water without heating, this project saves significant energy.
  • Avoid additional CAPEX of 7 million Baht
  • Savings of 2.4 million Baht / year
  • Energy savings of 2,425,000 kWh / year
  • GHG emission reduction of 1,210 tCO2e / year

Incubating a Culture of Innovation

Osotspa has opened channels for employees to express their ideas and provides support resources for the pilot run. The Contribution Award 2022 is one of our “innovation sandboxes” for the younger generation aimed at improving business processes and scaling up to have bigger positive impacts.
The winner in 2022 was
“Alert System Initiative”
which is an automated alert system designed for projects or task management that gives prior notification of the expiration date of any permit or license. The initiative is expected to reduce human error, support planning, and save on penalty fees.

A collaborative project between the External Affairs & Sustainability Department and the IT Departmentwas developed based on SharePoint and Power Automate programs