THAILAND LOGISTIC INDUSTRY

Thailand logistic industry



Thailand logistic industry

Introduction

Many firms are starting to focus on the effective and efficient supply chain management in Asia. This empirical paper reports on the state of existing logistics management practices in Thailand. The main results reveal that firms prefer agile suppliers. Also, most of the logistics costs incurred are on transportation and warehousing. Firms that have instituted logistics departments are making an effort in upgrading their logistical systems and are more pervasive in using technology to manage logistics as compared to firms without formalised logistics departments. The factors hindering logistics development include inefficient logistics information systems, acute transportation bottlenecks, and the lack of logistics management expertise. Finally, future logistics managers need to be competent in modern technology and possess logistics specific skills.(Christopher,1993)

Discussion

In today's fast paced economic climate, many firms increasingly realise that globalisation has made the world smaller and more competitive. A change in one place impacts another quickly. Also, customers seek products that can respond well to their specific needs. As such, firms are now looking at securing cost, quality, technological and other competitive advantages as a strategy to pursue in a globally competitive environment. One currently popular competitive advantage for firms is to promote and provide value to its customers by performing its supply chain activities more efficiently than competition. As a result, one area of increasing focus is on the logistical management of a firm's set of operations.

Methodology

The information discussed in this article comes from a postal survey that was sent to a sample of 150 randomly selected industrial and commercial firms listed on the Thai Stock Exchange. The choice of the sample is rationalised as follows. These listed firms are indicative of the most progressive firms in Thailand, and have their headquarters located in the capital (Bangkok) and its environs. There will be a severe resource constraint of time and finances to attempt to reach a wider and more heterogeneous geographical area.(Goldman,1995)

An exploratory survey instrument is used to examine as many issues related to logistics management practices as possible to provide an extensive coverage. Designed in English, the survey was translated into Thai and then re-translated into English to eliminate translation errors. In most question items, a five-point Likert scale (with “1” representing unaffected and “5” critically important) is used. Following testing with three companies and subsequent refinement, the survey was sent by mail and fax to the target firms. Follow-up calls and visits were made to ensure that all incomplete returns were filled. The field collection took about two months. A total of 80 useable surveys were returned, yielding a response rate of 53 per cent. Owing to the nature of the survey instrument, the data analysis involves primarily frequency reporting, simple summary statistics and t-tests, using Microsoft Excel. The question items were also tested for non-response bias. None were found. In the questionnaire, executives were asked to address four key topics, namely, supplier selection and relationship, extent of logistics management and development, problems and barriers, and future skills of logistics ...