24 25 september 2014, bitec bangkok, thailand 2... · 2015. 1. 30. · key performance indonesia...
TRANSCRIPT
![Page 1: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/1.jpg)
Asia Pacific Trade Facilitation Forum 2014
24 – 25 September 2014, BITEC
Bangkok, Thailand
![Page 2: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/2.jpg)
Trade facilitation and logistics performance in Thailand
Ruth Banomyong (PhD)
Centre for Logistics Research
Thammasat University
![Page 3: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/3.jpg)
Agenda • Introduction
• The logistics performance index (LPI)
1. An ASEAN perspective
2. Thailand’s ranking
• Thailand’s efforts in monitoring logistics
performance
• Service assessment
• Policies Matters…
![Page 4: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/4.jpg)
50%
70%
90%
110%
130%
150%
170%
190%
210%
230%
250%
2 2.5 3 3.5 4 4.5
LPI score (2010)
UNESCAP-World Bank trade costs vs. LPI score
Introduction: The relationship between Trade
facilitation and logistics performance
Supply chain bottlenecks are the primary cause of friction
in trade (trade costs). Reducing them by half would raise
trade by 15% and production by 5% globally.
Avera
ge t
rade c
osts
of goods v
alu
e
![Page 5: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/5.jpg)
LPI 2014: Top 10 performers by income group
4
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Malaysia
China
Turkey
Hungary
South Africa
Thailand
Romania
Panama
Bulgaria
Mexico
Top 10 upper middle-income
1.0 2.0 3.0 4.0 5.0
VietnamIndonesia
IndiaPhilippines
UkraineEgypt, Arab Rep.
El SalvadorPakistan
NigeriaGuatemala
Top 10 lower middle-income 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
MalawiKenya
RwandaCambodia
Burkina FasoLiberia
EthiopiaNepal
BurundiBangladesh
Top 10 low-income
1.0 2.0 3.0 4.0 5.0
Germany
Netherlands
Belgium
United Kingdom
Singapore
Sweden
Norway
Luxembourg
United States
Japan
Top 10 overall By overall LPI score
![Page 6: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/6.jpg)
Typology LPI Score ASEAN countries
logistics friendly 3.50 - 5.00 Singapore Malaysia
consistent performers 2.95 - 3.49 Thailand Philippines Vietnam Indonesia
partial performers 2.40 - 2.94 Cambodia
logistics unfriendly 0.00 - 2.39 Laos Myanmar
ASEAN LPI 2014 Ranking
![Page 7: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/7.jpg)
Note:
• Different time period so comparison not adequate
• The 2011 floods affected the perception of respondents on
Thailand’s logistics capability
• The 2013 protest in Thailand does not seem to have affected
perception but…
• Thailand moved into the “consistent logistics” group
Thailand (LPI) 2007 2010 2012 2014
Score 3.31 3.29 3.18 3.43
Rank 31 35 38 35
![Page 8: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/8.jpg)
Thailand’s efforts • Since 2001, Thailand has recognised
logistics development as a national
priority.
• A national logistics development policy
has been approved for the period 2007-
2011 & 2013-2017.
• Trade Facilitation policies in Thailand have
been fuzzy to say the least
![Page 9: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/9.jpg)
Ultimate Goals
Competitiveness,
Co-prosperity, Sustainability, and
Quality of life
6. Develop Human resource development system
7. Develop Monitoring system for self improvement
1. Increase Competitiveness in Supply Chain
Management and Potential Business 2. Promote Business Related to Trade and
Services in Border Town Areas.
Strategic Objectives
Logistics efficiency & responsiveness, Value creation, and regional
inclusive growth
Strategic Positions
Trade & Service Hub of GMS, and
Gateway to Asia
Triangle of
Achievement
2. Trade
facilitation
enhancement
3 Missions
7 Strategy
1. Supply chain
competitiveness
3. Capacity
building and
Policy
driving
factors
Efficiency
&
Effectiveness
1.Strategic Plan
2.Issue based
3.Green
Society
4. Private
Participation
4. Improve
Facilitation at
Gateways
5. Promote
Services
Improvement and
Expand LSPs
Network
3. Develop
Transport
Services and
Logistics
Networks
Trade Facilitation & Supply Chain Management for Competitiveness
Thailand’s Logistics Development Strategy (2013-2017)
![Page 10: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/10.jpg)
3 Missions and 7 Strategies
Supply chain
competitiveness
Trade facilitation
enhancement
Capacity building and Policy
driving factors
1. Increase Competitiveness in Supply Chain Management and Potential Business
2. Promote Business Related to Trade and Services in Border
Town Areas.
3. Develop Transport Services and Logistics Networks
4. Improve Facilitation at Gateways
5. Promote Services Improvement and Expand LSPs Network
6. Develop Human resource development system
7. Develop Monitoring system for self improvement
Thailand’s Logistics Development Strategy (2013-2017)
![Page 11: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/11.jpg)
• Thammasat University helped developed the
methodology to estimate national logistics cost/GDP
in 2004 for NESDB
• Thammasat University has helped the Thai Ministry
of Industry to develop an assessment database for
manufacturing firm logistics performance since 2011
• Thammasat University has helped the Thai Ministry
of Agriculture to assess logistic and supply chain
performance of key agricultural produce
• No assessment for logistics performance of services yet…MoC?
Monitoring performance in Thailand
![Page 12: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/12.jpg)
Cost
dimension
Time
dimension
Reliability
dimension
9 Logistic
activities
27 KPIs
Industrial Logistics Conceptual Framework
![Page 13: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/13.jpg)
Industrial Assessment Framework
• However, not all KPIs are of equal importance.
• 9 key KPIs can reflect overall logistics
performance
Cost Time Reliability
Transport Order Cycle Time
Delivery in Full & on Time
Warehouse Delivery Cycle Time
Forecast Accuracy
Inventory Inventory days Return Rate
![Page 14: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/14.jpg)
Example of service providers performance assessment
Key Performance Indonesia Thailand Global
Benchmark
Delivery In Full and On Time
82.60% 86.60% 95.00%
Damage rate
3.54% 5.00% 1.00%
Cash Conversion Cycle (C2C)
15.84
13
1
Source: The Author
![Page 15: 24 25 September 2014, BITEC Bangkok, Thailand 2... · 2015. 1. 30. · Key Performance Indonesia Thailand Global Benchmark Delivery In Full and On Time 82.60% 86.60% 95.00% Damage](https://reader036.vdocuments.site/reader036/viewer/2022071418/6115de52ebc5246c75038bec/html5/thumbnails/15.jpg)
Policies matter to Logistics Performance
• Ports
• Road/rail corridors
• Airports Infrastructure
• Customs & payments
• Simplification & automation
• Harmonization & standardization
Procedures and
Trade Facilitation
• Forwarders, truckers, brokers etc.
• Regulation of entry
• Market structure and competition Services
• ‘Green Logistics’
• City Logistics
Sustainable Logistics
14
Regulations (customs, services) are increasingly
regional, but implementation is national.