Competitiveness of Thai Entrepreneurs: Key Success Factors of Logistics Business Operations

Abstract

The purpose of this study is to identify the key success factors that affect Thai entrepreneurial competitiveness in logistics business operations. Four main parameters and twelve variables were first identified from both a literature review and observations from the Thai context, and were then explored. The methodology of this research began with a literature review. Fifty entrepreneurs in the logistics sector then filled out questionnaires, which were analyzed using a mean and standard deviation (SD) model. Results showed that the responses were in the agreed level in which the mean=2.89 and SD=0.35. The mean of the variable Thailand Infrastructure is still incomplete, was 2.94. The mean of Fuel Prices still Continuously Increase, was 2.90; and the mean of Thai Entrepreneurs Mainly Use Road Transportation was 2.84. Responses showed the mean of the variable Thai Entrepreneurs Have Too Little Understanding of Effective Transportation System, was 3.04. The mean of Thai Entrepreneurs Lack Knowledge and Skills about Just-in-Time Concept, was 2.79; and the mean of the Logistics Management is Separately Managed, the Collaboration in each Department is Low, was 2.58. The mean of Domestic Laws and Regulations are not Competitive was 3.03. The mean of Cross-border Trade and Regulations need to be revamped, was 2.94; and the mean of International Transportation Rules must be changed, was 2.73. The mean of Thai Logistics Workforce Lacks Logistics Management Skills and Experience, was 3.45. The mean of Thai Logistics Workforce Productivity is Lower than Entrepreneurs’ Expectations, was 2.97 and the mean of English Proficiency of Thai Logistics Workforce is Low, was 2.73. Thai entrepreneurs need to improve their competitiveness by focusing on the key factors that affect logistics business success, such as figuring out how to cut operational management costs, improve ineffective inventory management and improve the quality of workforce skills and knowledge. Transportation costs are still high, and since these costs are influenced by Government policies, Thai entrepreneurs need the Government to establish plans for infrastructure investment, such as by focusing on rail transportation rather than relying on roads. This would help entrepreneurs to enhance their competitiveness and provide excellent customer service. Effective inventory management requires both upstream and downstream development because inventory management involves more than just one function, such as the purchasing department or workin-process responsibilities, so all functions should work together. Inventory management success requires good collaboration with suppliers, transportation providers, distributors, and customers.