Enhancing Competitive Advantage to SME Products in Eastern Provinces by Using Logistics and Supply Chain Management

Abstract

The objective of the study is to examine business patterns of SME entrepreneurs by using logistics and supply chain management, as a tool for managing inbound activities from procurement, warehousing. It also includes outbound activities from order processing, channel distribution in both domestic and international markets. Furthermore, it examines and analyses factors that affect to inbound and outbound logistics. The results are used to formulate strategic planning to enhance competitive advantage to Thai SME entrepreneurs. To achieve the objectives, the study collects data covers four eastern provinces: Choburi, Rayong, Chantaburi, Trat. The study reveals that SME entrepreneurs lack the knowledge of logistics and supply chain management. In particular, from production to channel distribution, it would to reduce total logistics cost and quality of services. They manage ineffective storage spaces with complicate and complex production and storage processes. Furthermore, they have shortages of raw materials in production processes, because limitation of seasonal supply of raw materials and lack of effective planning. The result shows that logistics management has positively relationship with increasing sale and operation efficiency. It also provides recommendations to promote SME entrepreneurs to enhance sustainably competitiveness.