The Interrelationships between Factors Affecting Logistics Management Strategies and Performance of Logistics Companies in Thailand

Abstract

The globalization era gave rise to new economic conditions or economies that require new ideas and modern technology to improve management and offer efficient service. The objectives of this research are 1) to investigate the relationship between technology structure, personnel capacity, customer focus, and competitor direction and their effects on logistics management strategies and 2) to investigate the relationship and effects of logistics management strategies on the performance of logistics companies in Thailand. A questionnaire was distributed to 258 logistics service providers in Thailand. Multiple regression analysis technique was used to analyze the data. The study revealed that there is a positive relationship between technology structure, personnel capacity, customer focus, and competitor direction and effect on logistics management strategies and that logistics management strategies – delivery speed and logistics safety – have a positive relationship with the performance of logistics companies at a significant level. From the implication of the findings, logistics operators should have systematic planning, apply up-to-date database, train their personnel for new skills, and keep track of customer’s need. The last factor to consider is to keep track of customers’ need in order to use the strategies that secure advantage in the logistics industry and achieve satisfactory business performance.