# Factory Logistics Improvement: A Case Study Analysis of Companies in Northern Thailand, 2022-2024
## 1 Introduction
New metrics need to be developed to measure not just equipment uptime, but also the ripple effects on inventory management, production scheduling, and supply chain responsiveness. For example, traditional metrics like Overall Equipment Effectiveness (OEE) may not fully reflect how predictive maintenance influences just-in-time delivery capabilities or reduces rush orders for spare parts [14]. These gaps in performance measurement have important implications for factory logistics. Without comprehensive metrics, manufacturers may struggle to optimize their maintenance strategies in ways that truly enhance logistical efficiency. Future research should focus on developing holistic performance frameworks that integrate maintenance, production, and logistics metrics to provide a more accurate picture of predictive maintenance's value in the Industry 4.0 context [15]. As manufacturing continues to evolve in response to global competition and technological advancements, the role of factory logistics becomes increasingly critical in determining organizational success [16]. By addressing existing limitations and leveraging emerging trends, factories can enhance their competitiveness, improve productivity, and meet the changing demands of the market [17]. The case study presented herein is emblematic of the broader challenges faced within the Thai industrial ecosystem, particularly in the realm of logistics management. This scenario reflects the complex landscape in which Thai enterprises operate, where significant hurdles in logistics optimization and strategic management persist [18]. To ensure survival and maintain competitiveness, Thai businesses are increasingly compelled to embrace new knowledge paradigms and leverage external expertise [19]. By utilizing external knowledge sources and specialized expertise, these enterprises aim to transcend their inherent limitations, whether they be in technological capabilities, managerial practices, or logistics efficiencies [20]. This strategy of knowledge acquisition and expert consultation is particularly crucial in the context of Thailand's efforts to enhance its industrial competitiveness and move up the global value chain. The case thus underscores the critical role of knowledge integration and external collaboration in overcoming the multifaceted challenges faced by Thai industries, particularly in the domain of logistics management, which is fundamental to operational efficiency and market responsiveness [21]. This paper analyzes the results of factory logistics improvement projects implemented in 30 factories across Northern Thailand from 2022 to 2024. These projects are part of a long-running initiative funded by the Ministry of Industry, which has been active for decades. To date, over 500 factories in Thailand have undergone logistics enhancements, achieving performance improvements, cost savings, and numerous other benefits through consultancy, reskilling, and technology transfer processes. The urgency of this research is underscored by the significant economic impact of logistics inefficiencies. According to Thailand's Logistics Report 2021, logistics costs in Thailand amount to 13.7% of GDP, substantially higher than the global average of 10.8% [22]. This gap represents a potential for annual savings of up to THB 500 billion if Thailand could align its logistics costs with global standards. Such improvements could significantly enhance the competitiveness of Thai industries in the global market. This study builds upon and updates the findings presented in an initial paper published in 2015 [23], offering fresh insights into the program's ongoing impact and effectiveness in the Northern Thailand region. This study builds upon previous research on supply chain and logistics management in Thai SMEs [18] that has highlighted the importance of internal linkages and the key roles of production planning, control, and inventory management [24].