Taweesak Theppitak DBA 6 Bangkok, ID No. 100009170 Thailand E-mail : taweesak99@hotmail

1. Exploring Adoption of Logistics and Supply Chain Techniques and Strategies in the Thai Automotive Industry Taweesak Theppitak DBA 6 Bangkok, ID No. 100009170 Thailand E-mail : taweesak99@hotmail.com

2. Scope of the Presentation • Problematic situations of Thai automotive Industry • Objectives & expected benefits • Literature review • Conceptual framework • Research methodology • Finding results • Research Implications • Conclusion

3. Problem statements • High level of inventory and non-inventory • Lack of logistics knowledge • Low productivity of production • Lack of knowledge related to sales and demand forecasting. • Slow response to customer’s requirements. • Lack of competitive advantage.

4. Objectives The aim of this paper is: • To explore the status and pattern for adoption of logistics and SC techniques in Thai automotive companies. • To examinefactors affecting logistics and SC technique formulation and implementation. • To evaluate the degree of effectiveness and efficiency, after implementing logistics techniques.

5. Expected Benefits of the Study • How to improve sustainable competitive advantage of Thai automotive companies. • How we assist these companies for establishing and implementing logistics techniques. • How we can overcome problems and obstacles in establishing and implementing logistics techniques.

6. Literature review • Role of logistics & supply chain in automotive industry. • Definition of logistics & supply chain. • Type of logistics and supply chain strategies and techniques (JIT, QR, ABC, EOQ, E-commerce, MRPI, Lean). • How to design and implement logistics and supply chain strategy. • Factors affecting to design and implementation in specific industry, in particular automotive industry. • Effectiveness and efficiency of logistics strategy adoption in specific industry

7. Z - Factors affecting to logistics strategy implementation X - Degree of importance level that company having on adoption of logistics & SCM Techniques Y - Organisational Effectiveness Conceptual framework • Effectiveness would occur, in case of use or not use logistics techniques • If companies adopt the techniques, what and how companies would do.

8. Research Questions The following research questions were utilized: • What are the roles of logistics and SCM for enhancing an organisation’s competitive advantage within the Thai automotive industry? • What status are Thai automotive companies giving to the adoption of logistics and SC techniques? • What is motivating interest to adopt logistics and SC techniques? • What factors are influencing the adoption of logistics and SC techniques and strategies in the Thai automotive industry, and how? • How do other factors influence or contribute to organisational effectiveness?

9. Research Methodology • Exploratory research is initially used. • Data collection is conducted in 2 dimensions: • Secondary data • Literature review • Primary data • Questionnaire surveys • 110 questionnaires were distributed to samplings, and 89 questionnaire were returned, as rate of return equaled 80.9 percent. • Questionnaire (Postal mail, fax, email, face-to-face) • Depth-interview • In-depth interview was conducted through 20-35 companies. • Observation • Automotive companies in Thailand.

10. Research Methodology • Data processing & analysis • SPSS – factor analysis, correlation, and multiple regression • Content analysis • Validity and Reliability will be examined. • Limitation of the study • Low budget for the research (3,000 US$ or 120,000 baht). • Companies lack understanding definition and how to use logistics & SCM techniques.

11. Finding results Table 1 Characteristic of the respondents Table 2 Duration of Business Establishment

12. Finding results Table 3 Using logistics system in activities in respondents’ organisation Table 4 Motives influencing on adoption of logistics and SC techniques & strategies

13. Finding results Table 5 Factors influencing on adoption of logistics and SC techniques and strategies Table 6 Perception on important level of logistics and supply chain techniques and strategies

14. Finding results Table 7 Efficiency and Effectiveness of adopting logistics and SC techniques and strategies Table 8 Evaluation effectiveness after adoption logistics and SC techniques

15. Z - Factors affecting to logistics strategy implementation X - Degree of importance level that company having on adoption of logistics & SCM Techniques Y - Organisational Effectiveness Summary of testing hypothesis

16. Finding results • Most companies have been using, at least, one of logistics techniques. • One of difficulties is how to identify which logistics activities would be considered for adoption of logistics techniques. • How to establish and implement a logistics technique for Thai companies. • Logistics knowledge and practices would be a weaken point to Thai companies.

17. Finding results • The result shows that companies perceived to the benefits of logistics and SCM. • Major pressures come from intense competition and requirement of their customers. • Companies focus mostly on improving to inbound side or material management. • Major aims are to respond to customer’s need, reducing costs and improving service level respectively. • Popular techniques are QR, JIT, MRPI respectively. • Companies would increasing focus on using ABC, Lean, Agile and e-commerce.

18. Research Implications • It needs to encourage or motivate Thai automotive companies to learn and adopt more on logistics and SCM. • Concern parties would encourage and support the companies for establishing and implementing logistics and SCM techniques. • Objectives of adoption would be clear and concise, and fit with the company’s environments. • Success to the adoption would depend on matching between logistics using and company’s environments (structure, system, process, style, and culture)

19. Conclusion • Companies provide a different degree on important level for adoption of logistics techniques. • The study shows that there is strong relationship between adoption of logistics techniques and the company’s effectiveness. • The study reflects that increasing adoption of logistics techniques would enhance higher effectiveness. • There is a medium relationship between factors influencing on adoption of logistics techniques and company’s effectiveness. • Companies balance and increasingly focus their interests on both inbound and outbound activities. • Companies have lesser degree of importance on reverse logistics. • The study leads to the conclusion that Thai automotive companies would enhance competitive advantage through effectivedesigning, implementing logistics techniques.

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