existing logistics systems continue to lag behind Australia, Hong Kong, Singapore, the EU, USA and China.  Aside from accelerated public-private sector collaboration, various organizations need to build a knowledge bank and create a Benchmarking data base that will enable various industrial groups to measure internal organizational efficiency.

Mrs. Anong Paijitprapapon, Director of Bureau of Logistics, Ministry of Industry, explained that national logistics development strategy will focus on upgrading 4 areas of logistics and supply chain efficiency, namely, Supply Chain Optimization, Internal Process Improvement by implementing appropriate operational principles and consulting services provided by the Logistic Clinic, Logistics Capacity Building through personnel training, and  Industrial Trade Facilitation with particular emphasis on industrial estate procedures.

The Ministry of Industry is preparing a Roadmap that will help large and small enterprises to lower Inventory Carrying/Holding Costs which represent 8.5% of GDP, in line with national target to reduce total logistics costs.

Inventory Carrying Costs currently account for 8.43% of GDP, Warehousing Cost 0.07%.  Based on data compiled by the National Statistics Office, total Inventory Carrying Cost of 23 industrial groups valued as Baht 257.3 billion in 2007 accounted for 3% of GDP.  The Ministry of Industry's 2010 Action Plan will focus on 13 target groups, namely, food, petrochemicals & plastics, electrical appliances & electronics, automotive plants, textiles & garment, rubber & rubber products, iron & steel, mining, handicraft, sugar, ceramics, pharmaceuticals, waste & surplus products.  Total inventory carrying costs of these industries valued at Baht 203,500 million account for 2.39% of GDP.

Roadmap 2011-2016 has identified 6 target groups namely, food, petrochemicals & plastics, electrical appliances & electronics, automotive industry, textiles & garment, rubber and rubber-based products.  These industries had the highest value of Inventory Carrying Cost equivalent to Baht 156,941 million or 2.11% of GDP.

Although several enterprises are not ready to participate in implementing the Roadmap, the Bureau of Logistics hopes that all parties will participate in the project to establish a framework for developing Best Practices in logistics that will in turn help to strengthen national competitiveness.