Proceedings of ICLT 2013
Implementation of governmental Logistics policies to enhance competitiveness in Thailand’s industrial sector
Korrakot Yaibuathet Tippayawong; Apichat Sopadang; Sakgasem Ramingwong
Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand
International Conference on Logistics & Transport 2013, Kyoto, Japan, pp. 153-162
Abstract
Thailand industrial sector is now facing intense logistics cost disadvantages, amounted to about 14.3% GDP. Cost control from supply chain and logistics management is the main priority for every companies.The Bureau of Logistics, Department of Primary Industrial and Mines, one of the majo overnmental offices who are responsible for National logistics cost reduction has introduced : umber of policies to cut down industrial loaistics cost. With sianificant and reaular fundina to focuse industries, tangible results and achievements have been realized and demonstrated. Purpose: This research paper aims to highlight the outcomes from the "Northern Thailand Logistics Improvement Project", which was supported by the Bureau of Logistics in 2012. This paper provides insight into the improvement of the logistics performance obtained from applying various logistics techniques to the six highest exporter industries, consisting of (i) food, (ii) petroleum and plastic, (iii) electrical and electronics, (iv) auto parts, (v) garment and textiles, and (vi) natural rubber industries. Design/methodology/approach: Twenty-five selected companies from Northern Thailand have been evaluated using the industrial standard, Logistics Scorecard. Then, two improvement sub-projects are introduced to each company considering from the revealed weaknesses. Appropriate logistics and supply chain management tools are subsequently proposed to the company s' improvement team to resolve identified problems. Findings: It has been shown that the average score from the Logistics Scorecard was increased from 2.57 to 3.15, where the highest increasing score belonged to the electrical and electronics industry (42.5% improvement). This resulted in a decline of the logistics cost in selected companies (Northern Thailand area) by more than 15% or in total about 2 million USD. Potentially, these players can expect to reduce the logistically related costs by more than 14 million USD within five years. Research limitations/ implications: The findings here are based from only 25 companies in the Northern Thailand. The Bureau of Logistics involved with more than 350 companies countrywide in 2012. A great number of companies are expected to benefit from similar kind of projects in the near future to come. Originality/ value: Similar approach can be extended to potential companies in different area or industrial sector in order to reduce companies' logistics cost or enhance their competitiveness.
Keywords
Logistics Policy Implementation; Productivity improvement; Logistics Scorecard Paper type: Logistics Development Policy
Citation
Korrakot Yaibuathet Tippayawong; Apichat Sopadang; Sakgasem Ramingwong (2013). Implementation of governmental Logistics policies to enhance competitiveness in Thailand’s industrial sector. Proceedings of the International Conference on Logistics & Transport (ICLT 2013), Kyoto, Japan, pp. 153-162.