Tomohiro Takashima, vice-president of the Japan External Trade Organisation, said Thailand's logistics costs account for 19 per cent of gross domestic product, against only 8.7 per cent in Japan.

"There is large room for Thailand to reduce logistics costs," Takashima said at an event held to announce the first effort to evaluate the logistics efficiency of Thai businesses in 10 industries.

He was joined by representatives from the Thai National Shippers' Council, Chiang Mai University's Faculty of Engineering and the Export Promotion Department.

The Thai companies will be evaluated using Japanese software for evaluating supply-chain management and logistics. This will identify the weak points and strengths of the company's logistics systems so they can be improved.

Suchat Chantaranakaracha, chairman of the shippers' council, said 300 members of the council, mainly exporters, had been short-listed for the evaluation process. They operate in 10 industries: petrochemicals and chemicals, auto and auto parts, consumer products, handicrafts, textiles and paper, ceramics and wood products, electronics and electrical appliances, medical, auto machinery, and product distribution.

"While they can use the data to improve their performance, the results will also be presented to the government, which will come up with other measures to overcome limitations, potentially through new logistics-network investment," Suchat said.

Sermkiat Jomjanyong of Chiang Mai University said the evaluation process would be completed in August. It will have four main categories - corporate strategies, planning, product unloading efficiency and information technology applications - and 22 indices in total.

"The information will reveal [the companies'] weaknesses and strengths, compared to other Thai companies and Japanese companies in the same business areas," he said.

If the project is successful, a second phase covering another 1,000 companies nationwide, will be carried out.

Watcharapong Thongrung

The Nation