JETRO's Logistics Project

Background to JETRO's Logistics Project

The Japanese government is well aware of the importance of logistics, especially for competitiveness in the current intensified free flow of global trade. Apart from cost and lead-time reduction, logistics is considered as a crucial factor for attaining and sustaining competitiveness. In the meantime, Thailand is well-placed vis-à-vis:

1)being a leader among Southeast Asian and Indochinese countries;

2)having a high concentration of Japanese investment;

3)acting as the logistics hub for Southeast Asia.

Consequently, the Japanese government aims to strengthen the functioning of logistics among ASEAN countries and to improve the Japanese investment environment.

In order to develop logistics in Thailand, the Japanese government has assigned Japan External Trade Organization or JETRO, a government-related body in charge of trade and investment tie-ups between Thailand and Japan, to cooperate and implement logistics activities.

Activities

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FISCAL YEAR 2003 (APRIL 2003-MARCH 2004)
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Starting from Japanese Fiscal Year 2003 (April 2003-March 2004), JETRO launched following series of logistics activities.
1) Study of Thailand’s Logistics System
1.1) Background to the study
1.2) Result of the study

2) Seminar on “Logistics from the Japanese Experience”
As the result of our study indicated that Human Resource Development (HRD) was the most important factor in achieving sustainable logistics development, JETRO initiated an awareness seminar for the Thai general public. In cooperation with Thai National Shippers’ Council (TNSC), JETRO hosted the seminar on ‘Logistics from the Japanese Experience’ on March 17, 2004.
In the seminar, three leading logistics experts from Japan were invited to make a presentation on logistics in Japan. Speakers included:
~ Mr. Takao Kawashima, Auditor of Ajinomoto General Food who gave a presentation entitled “Management and Logistics Strategy for Sustaining Competitiveness”(Thai ,Japanese ).
~ Mr. Haruhisa Somaya, Director for Distribution and Logistics Policy, Ministry of Economy, Trade and Industry (METI), Japan held a presentation on “Logistics Policy in Japan and the Expectation of Efficient Logistics in Thailand” (Thai ,Japanese ).
~ Mr. Shunichi Kobayashi, Senior Consultant at JMA Consultant Inc., spoke on the subject of “Techniques of Continuous Improvement at Operation Site for Achieving Efficiency and Productivity”(Thai ,Japanese ).
The seminar was attended by 400 participants from both the private and government sectors, including many key players in the logistics field.

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FISCAL YEAR 2004 (APRIL 2004-MARCH 2005)
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JETRO Bangkok has continued focusing on Human Resource Development (HRD) as the main theme of this fiscal year’s activities by dispatching Japanese experts to impart know-how. JETRO Bangkok, in cooperation with TNSC and related institutions/organizations, will launch many activities including seminars, workshops and training sessions to help develop logistics personnel in Thailand.

Recent Activities
1) Seminar on "The Strategic Execution of Information Technology to Systemize Logistics: Recent Trends"
JETRO Bangkok invited Mr. Fumitoshi FUJIMAKI, CEO of Logistics Laboratories of Japan, to give a comprehensive presentation about logistics and supply chain management (SCM), IT execution strategies, and practical examples of the benefit of IT execution in logistics and SCM at the seminar “The Strategic Execution of Information Technology to Systemize Logistics: Recent Trends” (Thai ,Japanese ) on July 23, 2004 at Queen Sirikit National Convention Center. The seminar was part of “The Export Services and Logistics Fair” held from 21-23 July 2004 organized by the Department of Export Promotion, Ministry of Commerce and the Thai Software Industry Association.
Mr. Fujimaki is a Japanese logistics professional with over 10-years experience especially in the information system field. His presentation covered the current demands for logistics, as well as current logistics issues and trends.

2) Seminar on "Trend of Logistics Development in Thailand and Japanese Cooperation"
JETRO Bangkok in cooperation with TNSC has organized the 2nd awareness seminar in Bangkok on 17 November 2004 in order to provide information of logistics development not only in Japan but also in Thailand and to enhance human resources and strategies for logistics competitiveness.
The seminar was divided into 2 sessions:
2.1) Morning Session: Direction of Logistics in Thailand and Japanese Cooperation
Three main logistics policy makers both from Thailand and Japan were invited to deliver following speech and presentations:
~ Keynote Speech on “Infrastructure Development in Thailand” by Mr. Wanchai Sarathulthat, Permanent Secretary of Ministry of Transport.
~ Logistics Master Plan (ZIP FILE) by Ms. Wilaiporn Liwgasemsan, Deputy Secretary General of Office of National Economic and Social Development Board (NESDB)
~ Introduction of Japanese Cooperation in Logistics Development in Thailand (ZIP FILE) by Mr. Satoshi Suenaga, Assitant Director of Technical Cooperation Division, Ministry of Economy, Trade and Industry (METI ), Japan
2.2) Afternoon Session: Logistics HRD and Best Practice
Four speakers from both Thailand and Japan included
~ Logistics HRD in Japan (ZIP FILE) by Mr. Kunio Kakuta, Executive Vice President, Japan Institute of Logistics System (JILS)
~ Logistics Capacity Building Roadmap of Thailand (ZIP FILE) by Mr. Techa Boonyachai, Secretary-General of TNSC
~ Case study of benchmarking of logistics and supply chain in Thailand (ZIP FILE) by Asst. Prof. Ruth Banomyong (PhD), Head, Dept. of International Business, Logistics & Transport, Thammasat Business School.
~ Pilot Project of Implementation of RFID and Actual Effect of Introduction in Japan (ZIP FILE) by Mr. Shigeru Awamoto, Managing Director & Executive Researcher, Leading Information Technology Institute Inc.
The seminar was well-received by more than 400 businesspeople, government officials and academicians.

3) Seminar in Eastern Province of Thailand
Another mobile awareness seminar for the eastern region of Thailand entitled “Strategic Logistics Management” is a one-day seminar on 1 February 2005 at Pattaya that features briefings and real-world practice on logistics management as well as examples of successful logistics applications, such as evaluating logistical operation to create cutting-edge logistical systems or improving logistics in Distribution Centers.

JETRO Bangkok and TNSC have invited leading logistics speakers from Thailand and Japan including
~ Keynote Speech on “Strategy of Logistics Development in Eastern Region” by Mr. Wanchai Saratoontat, Permanent Secretary, Ministry of Transport
~ Strategic Logistics Management (ZIP FILE) by Mr. Teruo Kawamura, Managing Director of Japan Shippers’ Council
~ How to Evaluate Logistics Operations (ZIP FILE) by Asst. Prof. Ruth Banomyong (PhD), Thammasat Business School
~ How to Improve Logistics in Distribution Centers (ZIP FILE) by Mr. Jun Suzuki, President & Consultant of Sun Logistics Development

4) International Logistics Workshop for Executives
The workshop has been held by TNSC and the Association of Overseas Technical Scholarship (AOTS) with the support of JETRO in Bangkok from 28 February to 3 March 2005. The workshop is designed as an intensive workshop, comprising a lecture and group discussion and presentation in order to obtain practical knowledge, including global logistics, supply chain management and IT systems, from Japanese experts and share experience among participated executives.

5) Pilot Project of Logistics Curriculum and Textbook
JETRO supports to modify the existing logistics curriculum and textbook in Japan to best serve the Thai people based upon the finding of questionnaire and fields surveys on local firms. The modified curriculum and textbooks has been supervised by Japanese experts and with the consultation from Thai lecturers from leading universities. The curriculum and textbook will be experimented in the training course targeting supervisors in the manufacturing industries as well as in the On-the-Job Training at case study firms. The project has been conducted by a Japanese non-profitable organization in cooperation with TNSC.

6) Other Pilot Projects of ASEAN-wide Logistics System
Apart from the above pilot project, JETRO also supports 2 additional pilot demonstration projects for ASEAN-wide logistics system as follows:
1) Pilot Project with Breakthrough in Business Investment Environment (Business Model on Standardization and Mutual Recycle Usage of Returnable Container for Exports in South East Asia)
This Project aims to test the cost effectiveness of replacing carton box (traditionally used in the region) by returnable container that can be re-cycled and a two-way usage system has been carried out to further reduce the additional cost of shipping empty containers. In addition, a new information system has been developed to support the inventory control that is the "bottleneck" in the regional usage.
For more information, see Summary of Report on Business Model on Standardization and Mutual Re-cycle Usage of Returnable Container for Exports in South-east Asia

2) Pilot Project for Construction of an Advanced Trade and Investment Environment (Development of Land Transportation Network in the Greater Mekong Sub-region (GMS))
This Project has verified the practicality of transporting parts and products by truck, for production by Japanese firms that have established local facilities, over a land transport route that extends across Laos to connect Bangkok, Thailand with Hanoi in Vietnam, and clarify aspects for improvement. When a land transport route between Hanoi and Bangkok is established in the future, transit time will be shortened to two-thirds of the time required using existing ocean transport, and stable transport also will become possible. The production and sales operations of Japanese firms will accelerate as a result. The project also is expected to contribute to improving the investment environment in the project countries and boost the economic development of Laos.
For more information, see Summary of Report on Demonstrative Project Relative to the Development of Land Transportation Network in the GMS .

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FISCAL YEAR 2005 (APRIL 2005-MARCH 2006)
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1) Feasibility Study for the Establishment of "Logistics Clinic" Project in Thailand
1.1) Background
"Logistics Clinic" is the cooperation project between JETRO and Thai National Shippers Council (TNSC) to optimize the companies' logistics efficiency and to strengthen national competitiveness from Japanese practice and experience.
1.2) Objectives

• To serve Thai government's policy to upgrade logistics competitiveness to international level.
• To create awareness of the importance of human resource development (HRD) in logistics area for within/outside companies.
• To introduce logistics clinic system from Japanese experts' experience as a model for development in Thailand.

1.3) Benefits
Logistics Clinic Project could be served as a feasibility study

• For organizations or entities, to implement Logistics Clinic System in Thailand
• For Thai entrepreneurs, to adopt know-how to improve logistics performance within enterprises.

1.4) Implementing methods

• To provide diagnosis for identifying a company’s level of logistics efficiency and issues for optimization.
• To provide solutions for further optimization on logistics efficiency with practical advice and guidance.

Therefore, JETRO and TNSC have conducted the following steps to expedite Logistics Clinic:

1. JETRO has dispatched two Japanese experts as "doctors" for 2 Thai recipient companies.
2. Six Thai Shindan (Diagnosticians) also join the "diagnosis" activity and will transfer diagnosis know-how.
3. Each Japanese doctor and three Shindan will take care of one company from Food industry and Auto parts industry in order to maximize their logistics efficiency.

On August 4, 2005, Mr. Atsuo Kuroda, President of JETRO Bangkok, Khun Suchart Chandtaranakararch, Chairman of TNSC and Mr. Chaisith Peereeratanasomporn, Managing Director of Transamut Foods Co., Ltd., M.L. Samornmas Posirisuk, General Manager of Sourcing & Logistics, Sammitr Motor Manufacturing Co., Ltd. jointly signed MOU of Logistics Clinic Project. The Pilot Project will last 10 months from the end of August 2005 to January 2006.
When the project will finish, a manual of "Optimizing Logistics Efficiency" will be circulated to general firms who can apply to/adjust with their internal surrounding/environment in order to enhance firms to implement efficient logistics management for cost reduction within their firms.

2) JETRO ASEAN Seminar: "ASEAN wide Efficient Logistics Initiatives"
2.1) Background & Objective
In the progress on economic integration among East Asian countries including development of Economic Partnership Agreement (EPA) and Free Trade Agreement (FTA) toward liberalization on international trade and investment, most of enterprises, especially manufacturing firms, which have been operating with ASEAN-wide businesses, pay more attentions to developing more efficient logistics system. Key important factors for decision-making on trade and investment in ASEAN countries will become logistics infrastructure, and regulations on trade and investment instead of the level of custom duties.

In this regards, JETRO has decided to hold a seminar on introducing business tips on logistics strategy for enterprises, which have business operations all over ASEAN.

Presentation 1: "Utilization of Returnable Pallets"
by Denso Co., Ltd., Japan (ZIP FILE)*

Presentation 2: "Potential of Land Transportation Routes in Mekhong Region"
by Sumitomo Co., Ltd., Japan (ZIP FILE)*

2.2) Countries/Date/Themes

1. Singapore／Monday, 12 SEP, 2005／Presentations 1, 2
2. Bangkok／Tuesday, 13 SEP, 2005／Presentations 1, 2　
3. Jakarta／Thursday, 15 SEP／Presentation 1
4. Hanoi／Thursday, 15 SEP／Presentation 2　
5. Ho Chi Min／Friday, 16 SEP／Presentation 2

　

2.3) Seminar Program for Thailand
On Tuesday, September 13, JETRO has held the seminar entitled "ASEAN-wide Efficient Logistics Initiative" in Bangkok. In the seminar, 3 presentations on "Introduction of JFront supported by METI, Japan by JETRO Head Office, "Utilization of Returnable Containers in ASEAN by Denso Co., Ltd., Japan" and "Potential of Land Transportation Routes in Mekong Region by Sumitomo Co., Ltd., Japan" have been made.

3) Provincial seminars on logistics management
JETRO will dispatch Japanese experts on logistics management to provincial areas.
3.1) Mukdaharn Province from 13-14 October 2005
For the seminar in Mukdahan province, JETRO will invite Mr. Takao KAWASHIMA, Senior Advisor, Ajinomoto General Foods, INC, to make the presentation on "Supply Chain Management (SCM): Strategy and Superior Competitiveness", The main contents of the presentation is about What CSF (Critical Success Factor) of Japan SCM is and What Thailand can learn from Japanese Success Cases.

3.2) Chiangmai Province from 17-18 November 2005

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