A Comparative Study of Applying Logistics Management in Developed Countries and Thai OTOP SME Products

Abstract

After Thailand confronted the economic crisis in 1997, the Thai government initiated the establishment of a project called “one tambon, one product, or OTOP”. The objective was to encourage and boost economic growth. However, to build a competitive advantage, OTOP firms need to produce high quality goods at low costs and provide quicker delivery services which meet the customer’s expectation by adopting logistics techniques. The literature reveals that foreign SME firms apply logistics efficiently in their functions, whereas Thai firms ignore the application of logistics techniques. Furthermore, some government sectors have not adopted logistics techniques and strategies sufficiently. The objective of this paper is to study issues related to the application of logistics in OTOP firms compared to those in developed countries, and to build and develop knowledge bodies in this area. The study surveys secondary sources (i.e. academic journals, books, texts) related to the OTOP research studies and logistics and supply chain. It studies the patterns, approaches and direction of success and failure of studied projects to find a way to improve the competitive advantage of OTOP products. In-depth interviews are used to collect data from government sectors and Japanese and Australian firms, including using observation and field study to survey foreign firms.