# Factory Logistics Improvement: A Case Study Analysis of Companies in Northern Thailand, 2022-2024
## 3 Methodology  
The Department of Industrial Promotion, under the Ministry of Industry, is tasked with promoting and enhancing logistics performance in Thai industries. This initiative employs a triple-helix model, fostering strong collaboration among the government, industry, and academic sectors [32]. While the department provides funding and a consultation framework, university consultants and experts work directly with industries to improve logistics performance. Typically, these projects span 5-6 months, with a minimum of 10 man-days dedicated to consultancy. The project's methodology (see Figure 1) begins with problem identification using preliminary diagnostic tools, including the Logistics/Supply Chain Scorecard (LSC Scorecard) [33], the Industrial Logistics Performance Indicator (ILPI) [34], and logistics cost analysis. The Logistics/Supply Chain Scorecard (LSC) offers a quantitative evaluation of a factory's awareness and implementation of logistics and supply chain principles. As detailed in Table 1, the LSC assessment is based on 23 specific criteria, grouped into five key areas: corporate strategy and inter-organization alignment, planning and execution capability, logistics performance, IT methods and implementation, and external collaboration [33]. This comprehensive approach provides a detailed picture of a company's logistics sophistication and strategic alignment. Figure 1: Methodology of factory logistics improvement project. The Industrial Logistics Performance Indicator (ILPI) (see Table 2) is a constructive indicator that evaluates the performance of 9 logistics activities across three critical dimensions, i.e., cost, time, and reliability [34]. This multidimensional approach ensures a holistic view of logistics efficiency, encompassing activities from demand forecasting to reversed logistics. \begin{table}
\begin{tabular}{c c c} \hline \hline
**Logistics Activities** & **Cost Dimension** & **Time Dimension** & **Reliability Dimension** \\ \hline ILPI1 Demand Forecasting & ILPI1C Forecasting & ILPI1T Average & ILPI1R Forecast \\ and Planning & Cost per Sale & Forecast Period & Accuracy Rate \\ \hline ILPI2 Customer Service & ILPI2C Customer Service & ILPI2T Average Order & ILPI2R Delivered \\ and Support & Cost per Sale & Cycle Time & In Full and On Time \\ \hline ILPI3 Logistics Communication & ILPI3C Information & ILPI3T Average Order & ILPI3R Order Accuracy Rate \\ and Order Processing & Processing Cost per Sale & Processing Cycle Time & ILPI4R Supplier DIFOT \\ \hline ILPI4 Purchasing and Procurement & ILPI4C Procurement Cost & ILPI5T Average Material & ILPI5R Damage Rate \\ \hline ILPI5 Material Handlings & ILPI5C Damaged Value & Handling and Packaging & ILPI5R Damage Rate \\ and Packaging & per Sale & Cycle Time & ILPI6R Inventory Accuracy \\ \hline ILPI6 Warehous and Storage & ILPI6C Warehousing & ILPI6T Average Inventory & ILPI6R Inventory Accuracy \\ \hline ILPI7 Inventory Management & ILPI7C Inventory Carrying & ILPI7T Average & ILPI7R Inventory Out \\  & Cost per Sale & Inventory Day & of Stock Rate \\ \hline ILPI8 Transportation & ILPI8C Transportation & ILPI8T Average Delivery & ILPI8R Transportation DIFOT \\ \hline ILPI8 Transportation & Cost per Sale & ILPI9T Average Cycle & ILPI9R Rate of \\ \hline ILPI9 Reversed Logistics & ILPI9C Returned & ILPI9T Average Cycle & ILPI9R Rate of \\ \hline ILPI9 Reversed Logistics & Cost per Sale & Time for Customer Return & Returned Goods \\ \hline \hline \end{tabular}
\end{table} 
Table 2: Industrial Logistics Performance Indicator (ILPI).