Logistics Management for the Competitive Advantage in the Pallet Renting Business

Abstract

This research was aimed to study about business models, Logistics competitive advantages and competitive strategies in pallet renting business.  This main informants were executive manager, general manager, department or operation manager and operation staff that had worked related in logistics and pallet renting business for 30 persons.  The research methodologies are In-depth Interview and focus group discussion.  The research results showed that the pallet renting business was focused on costs reduction, transit time reduction, and in-transit damage reduction within whole supply chain process.  For customer, they were not detecting pallet status, were paid only pallet-used date and were controlling by one stop pallet renting company.  For renting company, they could manage overall pallet usage within supply chain.  The pallet renting systems could link and support for international transportation.  The systems was controlling by using pallet documents control system. It generates the transit status, quantity of transit and total renting costs.  Those information was sent to sender, receiver and service provider. Renting costs was calculated from the first date of receiving until the date of transit to other party.

Logistics competitive advantages could apply in these functions; 1) Inbound Logistics 2) Production Logistics and 3) Outbound Logistics.  The competitive strategies in pallet renting business was 1) Total costs leadership; Pallet-Internet system was used for updating pallet data within supply chain parties.  This system not only could show real-time pallet’s usage and available status but also could control overall costs.  2) Differentiation; it was focus on high-quality of pallet. It should be returnable, should have standard weight supporting, and should reduce damaged chance.  And it should service for customer and customer of customer. 3) Niche marketing; the business should focus on pallet designing that served various pallet size for many kinds of products.