# Factory Logistics Improvement: A Case Study Analysis of Companies in Northern Thailand, 2022-2024
## 3 Methodology
\begin{table}
\begin{tabular}{c c} \hline \hline  & 1.1 Corporate strategy regarding logistics \\ Area 1: & 1.2 Supplier contract terms and degree of information sharing \\ Corporate strategy and inter-organization alignment & 1.3 Customer contract terms and degree of information sharing \\  & 1.4 System for customer satisfaction \\  & 1.5 System for employee development and evaluation \\ \hline \hline  & 2.1 Logistics strategy implementation \\  & 2.2 Demand forecasting \\ Area 2: & 2.3 Logistics planning and adaptability \\ Planning and execution capability & 2.4 Inventory management and control \\  & 2.5 Process standardization \\  & 2.6 Logistics responsibility assignment \\ \hline  & 3.1 Logistics activity improvement \\  & 3.2 Inventory turnover and cash-to-cash cycle time \\ Area 3: & 3.3 Customer lead time and load efficiency \\ Logistics performance & 3.4 Delivery performance and quality \\  & 3.5 Inventory visibility and opportunity costs \\  & 3.6 Environmental activities \\  & 3.7 Logistics cost management \\ \hline Area 4: & 4.1 Data interchange coverage \\ IT methods and implementation & 4.2 Open standards and unique identification codes \\  & 4.3 Logistics and supply chain IT capacity building \\ \hline Area 5: & 5.1 Collaboration with partners \\ External collaboration & 5.2 Collaboration with R\&D agencies \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Logistics/Supply Chain Scorecard (LSC Scorecard). The project utilized several key performance indicators to assess logistics efficiency. To give some examples, Forecast Accuracy Rate (FAR) measures the precision of demand forecasting by comparing predicted versus actual order quantities. Transportation Cost per Sale (TCPS) evaluates transportation efficiency by considering various costs such as personnel, fuel, maintenance, and depreciation relative to total sales. Inventory Accuracy (IA) assesses the correctness of inventory records by comparing recorded stock levels against physical counts. Warehousing Cost per Sale (WCPS) measures warehousing efficiency by factoring in costs like depreciation, insurance, labor, and equipment relative to sales. Lastly, the Transportation DIFOT (Delivery In Full On Time) Rate gauges delivery performance by analyzing the proportion of orders delivered completely and punctually. These indicators provide a comprehensive view of a company's logistics performance across forecasting, transportation, inventory management, warehousing, and delivery reliability. In addition to these standardized metrics, logistics cost analysis plays a crucial role in performance evaluation. This analysis delves deeply into the actual logistics costs incurred by manufacturers, offering a granular view of expenditures across various logistics activities. Such detailed cost breakdowns are essential for identifying inefficiencies and potential areas for cost optimization. The true power of these assessment tools lies in their comparative capabilities. After conducting diagnostics using ILPI, LSC, and logistics cost analysis, a company's performance can be benchmarked against a national database comprising more than 1200 factories. This comparative analysis enables the identification of specific weaknesses or areas with significant room for improvement in a company's logistics operations. By leveraging this extensive dataset, manufacturers can gain valuable insights into their relative performance within the industry and pinpoint targeted areas for enhancement. Once key issues are identified, improvement projects are designed using various management tools. These may include lean concepts, logistics design, simulations, operations research, and Information Technology implementation, tailored to meet the specific requirements of each project. The selection of 30 factories across various sectors in Northern Thailand was based on a rigorous multi-stage process aligned with the project's objectives and constraints. Initially, a call for applications was issued following the project's approval.