Managing effective Logistics and supply chain management for Thailand’s one tambon, one product (OTOP)- a way to creating sustainable business

Taweesak Theppitak

Proceedings of ICLT 2013

Managing effective Logistics and supply chain management for Thailand’s one tambon, one product (OTOP)- a way to creating sustainable business

Taweesak Theppitak

Faculty of Logistics, Burapha University, Thailand

International Conference on Logistics & Transport 2013, Kyoto, Japan, pp. 186-191

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Abstract

Under intense competition among small and medium enterprises (SMEs), ―One Tambon, One Product‖ (OTOP product) need to adapt and respond to dynamic changes. Thai government has promoted the OTOP project to continuously boost Thailand‘s economic growth, and seek competitive advantages. However, there are evidences that OTOP firms lack knowledge and understand how to apply logistics concepts and strategy to their business operations. The literature in OTOP businesses led to the conclusion that OTOP‘s logistics adoption has been overlooked. Further, studies on logistics in OTOP products are very few. The objective of the research is to examine issues how to apply logistics in functions for example purchase, production, warehouse and distribution. It also extends a knowledge body related to the status for adopting logistics strategies to OTOP entrepreneurs in Thailand. A total of 240 questionnaires were distributed and 225 completed questionnaires were returned, generating a response rate of 94 percent. The hypothesis is statistically tested using SPSS version 11.0.5. The results indicated that there are strong relationships between OTOP adoption in functions and enhancing their competitive advantage in term of cost reduction and service level improvement. The implications reflect that encouraging and motivation adopting an effective logistics strategy in functions would offer opportunities, including creating sustainable competitive advantage.

Keywords

Logistics; OTOP; strategy; purchasing; operations; Thailand

Citation

Taweesak Theppitak (2013). Managing effective Logistics and supply chain management for Thailand’s one tambon, one product (OTOP)- a way to creating sustainable business. Proceedings of the International Conference on Logistics & Transport (ICLT 2013), Kyoto, Japan, pp. 186-191.