ENHANCING LOGISTICS EFFICIENCY FOR THE COMPETITIVENESS M.W.A WELDING (THAILAND) CO., LTD

Abstract

The administration of operations that generate the flow of products and services in order to effectively and economically meet customer needs is known as logistics management. The objective of this research study is to lower the operational costs of logistics and provide methods for increasing M.W. Evelding (Thailand) Co., Ltd.'s efficiency in logistics management. Through interviews with 12 executives, managers, supervisors, and employees, this action research gathered data from the departments of purchasing, warehousing, inventory, and transportation. In order to lower operating costs, problems were further examined utilizing cause and effect diagrams and product grouping using ABC analysis.

According to the study, categorizing products based on their use value could be more effective in lowering inventory management expenses by utilizing ABC analysis to identify products that had a high use value and needed tighter supervision. Additionally, resources could be distributed effectively, leading to more economical orders. The findings also demonstrated that the cost of each order fluctuated depending on the quantity of inventory ordered each time but stayed constant regardless of the number of orders. Ordering using the economical approach was less expensive than ordering using the existing ordering model, according to the comparison of the annual value. Based on the comparison, it was discovered that the economy ordering model, which could save up to 69.35 percent, had a value of 461,761.33 baht, but the present ordering model of Group A warehouse products had a value of 1,506,511.30 baht. Additionally, it was discovered that budget-conscious route planning could save costs in ten days by as much as 30,845.00 baht, or 39.87 percent. This is due to the fact that full truckload management shortens delivery cycles and makes deliveries on time by combining delivery sites on the same route. Therefore, automation technology, warehouse management software, and transportation management systems to minimize operating expenses must be imported to eliminate running around empty in order to operate efficiently in line with the current context of competition and rapid change. Additionally, staff members need to be trained to comprehend their responsibilities and functions as well as the logistics management context.