According to the latest report;Singapore, Korea and Indonesia's cost of logistics in 2008 are 8%, 8.9%, 12.8% and 19% of their GDPs respectively. For Thailand, the value of total logistics costs in 2008 was equivalentn to 18.6 per cent of the country's GDP (1.7 trillion Baht) [4]. Three cost components are identified: transportation cost ~8.0%, inventory holding and warehouse cost ~10%and logistics administration cost ~0.6%. Clearly, the inventory and warehousing have the highest costs in the three components. A 1% decrease of inventory and warehouse cost would help increase several billions of baht. Therefore, cost reduction in logistics affects directly
Thailand competitiveness. While goods are delivered to middlemen or wholesalers, occurring cost during the business transactions affects directly to price offered to retail shops. Nowadays, several foreign companies conducting wholesale businesses have lower cost in total than that of domestic wholesalers due to owning massive capital and advanced management technologies. If the domestic companies do not improve logistics efficiency, competitiveness will decline. Finally they have to go out of business or must be taken over [5]. The article values improvement of inventory and warehouse systems in wholesale businesses, thus launching the inventory and warehouse improvement project for consumer product wholesalers. The article applies logistics
knowledge to wholesaler, which help decrease inventory and warehouse cost. As a result, Thai goods would gain competitiveness. Meanwhile the decrease in logistics cost of sale and marketing contributes low price products to end user.
According to the latest report;Singapore, Korea and Indonesia's cost of logistics in 2008 are 8%, 8.9%, 12.8% and 19% of their GDPs respectively. For Thailand, the value of total logistics costs in 2008 was equivalentn to 18.6 per cent of the country's GDP (1.7 trillion Baht) [4]. Three cost components are identified: transportation cost ~8.0%, inventory holding and warehouse cost ~10%and logistics administration cost ~0.6%. Clearly, the inventory and warehousing have the highest costs in the three components. A 1% decrease of inventory and warehouse cost would help increase several billions of baht. Therefore, cost reduction in logistics affects directly
Thailand competitiveness. While goods are delivered to middlemen or wholesalers, occurring cost during the business transactions affects directly to price offered to retail shops. Nowadays, several foreign companies conducting wholesale businesses have lower cost in total than that of domestic wholesalers due to owning massive capital and advanced management technologies. If the domestic companies do not improve logistics efficiency, competitiveness will decline. Finally they have to go out of business or must be taken over [5]. The article values improvement of inventory and warehouse systems in wholesale businesses, thus launching the inventory and warehouse improvement project for consumer product wholesalers. The article applies logistics
knowledge to wholesaler, which help decrease inventory and warehouse cost. As a result, Thai goods would gain competitiveness. Meanwhile the decrease in logistics cost of sale and marketing contributes low price products to end user.
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