Thailand's Logistics System To Be Upgraded

[Jai Dee]

Logistic system of Thailand to be upgraded

The Deputy Minister of Industry (รัฐมนตรีช่วยว่าการกระทรวงอุตสาหกรรม), Mr. Piyabutr Cholvijarn (ปิยะบุตร ชลวิจารณ์), said a budget of 1.3 billion baht will be used to improve the logistic system of Thailand, with an aim to lower the expenses in the industrial sector.

Mr. Piyabutr said at the Logistics Overcoming Industrial Crisis seminar that the development of Thailand’s logistic systems is a national agenda, and the government has assigned the Ministry of Industry to work on this matter by linking the industrial sector with state enterprises in an efficient manner. He believes this logistic system development plan will boost the confidence of consumers in the country, and it will be applied in metal and ceramics industries during the initial stage for the benefits of the construction and automotive sectors.

Mr. Piyabutr says the supply chain is an important mechanism in the development of Thailand’s logistic system. The supply chain ranges from production, storage, transportation to product delivery.

He says the Industry Ministry is rigorous in all processes, and he believes the improved logistics system can lower the industrial sector’s expenses by millions of baht per year.

Source: Thai National News Bureau Public Relations Department - 08 August 2007

[Scott]

I thought logistics here was an oxymoron! Actually, can somebody explain what a "logistics system" is? An example might be helpful (for some of us moronic readers) too.

[southbot]

It may well be an oxymoron in this particular case.

F.Y.I.

Logistics ( noun )

The modern use of the word "logistics" stems primarily from the military.

The word became commonly used by western military in the 60's.

Military Usage: Logistics are the part of an operation or project that deals with the procurement, replacement and maintenance of people and materiel. (that last word refers to bombs, guns, ammo, tanks, planes, etc)

Business/Civil Usage: Logistics are the part of a project that deals with the procurement, replacement and maintenance of workers and equipment.

There you have it, must be an oxymoron then, eh?

[page449]

My understanding of logistics, in the local dialect, is the transportation of goods from the manufacturer to consumer outlets.

Edited August 8, 2007 by page449

[chownah]

I can explain what "logistic system" is....it's the economic buzzword of the day!!!....it will be forgotten tomorrow and replaced with "critical infrastructure sub-element liaison".

Edited August 8, 2007 by chownah

[stumonster]

My understanding of logistics, in the local dialect, is the transportation of goods from the manufacturer to consumer outlets.

I can explain what "logistic system" is....it's the economic buzzword of the day!!!....it will be forgotten tomorrow and replaced with "critical infrastructure sub-element liaison".

my understanding of " logistics system " would encompass the road , rail , ports infrastructure and partially the telecommunications , banking and customs - it's not going to happen - too many people making much more than 1.3 billion baht from the status quo .

[Payboy]

Logistic system

it's actually a weather report.....hot air with a strong possibility of windfall Edited August 9, 2007 by Payboy

[supersomchai]

Many Thai politicians own/have interests in constuction companies -anaysis mr spock?????????

[quiksilva]

Nah, hopefully it will mean that they will invest in a few more railways. 8000Kms were laid by Rama V (I think) and only 1000Km have been laid since.

90% of all land freight in Thailand is carried by road. So the costs of delivering products to consumers or further up the supply chain (or closer to consumers) are severely dependant upon fuel costs. So whilst labour is cheap here logistics costs are not and will only continue to rise with oil prices.

Therefore to keep Thailand competitive they have to upgrade the logistics system by expanding the freight railway network.

Currently there is a only a single track freight railway from Bangkok to Laemchabang (where 90% of all goods are shipped), obviously more is urgently needed if they are to remain competitive.

If this is true, its good news.

Edited August 9, 2007 by quiksilva

[Scott]

Wow, thanks for the answers. I wasn't sure to begin with, then I sort of figured it out, then I got confused and now I am just baffled! Actually, the many posts, definitions and examples are helpful--along with the recognition that there may be a lot of "fluff" in what they really mean.

[Tony Clifton]

Nah, hopefully it will mean that they will invest in a few more railways. 8000Kms were laid by Rama V (I think) and only 1000Km have been laid since.

90% of all land freight in Thailand is carried by road. So the costs of delivering products to consumers or further up the supply chain (or closer to consumers) are severely dependant upon fuel costs. So whilst labour is cheap here logistics costs are not and will only continue to rise with oil prices.

Therefore to keep Thailand competitive they have to upgrade the logistics system by expanding the freight railway network.

Currently there is a only a single track freight railway from Bangkok to Laemchabang (where 90% of all goods are shipped), obviously more is urgently needed if they are to remain competitive.

If this is true, its good news.

And the motorway and Sukhumvit both went under repairs at the same time on the Eastern seabord, that's not logistics.

[quiksilva]

Nah, hopefully it will mean that they will invest in a few more railways. 8000Kms were laid by Rama V (I think) and only 1000Km have been laid since.

90% of all land freight in Thailand is carried by road. So the costs of delivering products to consumers or further up the supply chain (or closer to consumers) are severely dependant upon fuel costs. So whilst labour is cheap here logistics costs are not and will only continue to rise with oil prices.

Therefore to keep Thailand competitive they have to upgrade the logistics system by expanding the freight railway network.

Currently there is a only a single track freight railway from Bangkok to Laemchabang (where 90% of all goods are shipped), obviously more is urgently needed if they are to remain competitive.

If this is true, its good news.

And the motorway and Sukhumvit both went under repairs at the same time on the Eastern seabord, that's not logistics.

Sure its not good logistics but it should help in the long run.