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The Development of Logistics Management System for Clay Brick Manufacturing Industry

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The Development of Logistics Management System for Clay Brick Manufacturing Industry JOURNAL OF CRITICAL REVIEWS ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 THE DEVELOPMENT OF LOGISTICS MANAGEMENT SYSTEM FOR CLAY BRICK MANUFACTURING INDUSTRY Pimon Juntarakham Department of Ceramic Technology, Faculty of Industrial Technology, Phranakhon Rajabhat University, Thailand. Received: 14 March 2020 Revised and Accepted: 8 July 2020 ABSTRACT: This article explores the logistics management of the clay brick manufacturing industry. It was using the case study area of Pak Kred District, Nonthaburi Province, Thailand. The objective is to study the logistics management of the clay brick manufacturing industry and to develop the logistics management system of the clay brick manufacturing industry for Pak Kret District. Nonthaburi, Thailand. The researcher used integrated research between qualitative research and quantitative research by empirical research using questionnaires from 99 samples and group meetings. The statistics used for data analysis were frequency, percentage, mean and standard deviation. The results showed that the logistic management system of the clay brick production process in Pak Kred District, Nonthaburi Province in Thailand has customer service activities. And also product distribution channels management for logistics management regarding warehouses, high level of transportation, low demand forecasting, and planning. The development of the logistic management system of the clay brick production process found that the establishment was highly efficient, time-saving, and cost- effective in terms of quality that was more efficient than competitors. Also, the research results can be used and beneficial to the database creation system for strategic planning and development shortly, including the analysis of logistics management for establishments. KEYWORDS: Logistics management system, Logistics, and Supply Chain, Clay brick manufacturing industry. I. INTRODUCTION Nowadays, business is fiercely competitive due to changes in economic, social, technology, and education. Also, the world economy still faces an ever-changing environment, including natural disasters. As a result, businesses need to enhance their ability to conduct business in every way possible, whether reducing business costs and creating added value for the products to offer to customers. An important goal that entrepreneurs can use as a source of competitive advantage at both the business and national levels. It’s the management of the process of delivering goods and services from manufacturers to consumers, as well as the supply chain or logistics management. Entrepreneurs must find new ways to do business. In order to be able to survive and grow steadily for a long time. Essential strategies that companies use, such as marketing, financial, accounting, production, and operations strategies. Besides, techniques, methods, and technology products are used to aim at reducing costs and creating competitiveness—for example, procedures, just in time, total quality management and logistics management, etc. Household appliances in Thailand, both in the past and in the present, are pottery as well as the products that are currently in demand. It has been associated with human life since prehistoric times because humans have used it as everyday tools, packed food and articles, and therefore have invented and improved technology all the time [1]. Figure 1 shows the clay brick industry in Thailand. 3262 JOURNAL OF CRITICAL REVIEWS ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 Fig. 1: The clay brick industry in Thailand [1]. Logistics can increase efficiency and reduce costs, which can be developed and improved in the future by yourself. The researcher, therefore, realizes the importance of the development of logistics management. The analysis of the efficiency of logistics management and the development of the logistics management system in the clay brick production area Pak Kret District Nonthaburi in Thailand is a new source of growth. This logistics management system will create more value in the economy and create jobs for the public [2]. II. LITERATURE REVIEW Logistics management is an operational planning process to control the efficiency of product and service flow, from raw material procurement, warehouse management, transportation cost management, and value chain to the point of use or the consumers. Logistics is a part of the transportation management process which can help planning, supporting and controlling the flow of activities efficiently and effectively, including the storage of products from the beginning to the end for the needs of customers is essential. Logistics management is a control operation that involves the cost of goods from source to destination. By managing the logistics efficiently, it is necessary to link every business process related to each other into chains or networks for continuous coordination. This is to increase the efficiency of producing products and services for every department in the system. Enable agencies to work efficiently, with efficient logistics management able to meet customer needs at the lowest costs. At present, the production of clay bricks for construction throughout the country has about 900 factories, with a total production capacity of approximately 2,100,000,000 pieces per year or approximately 175,000,000 pieces per month. Brick production factories are scattered all over the country, and there are some concentration or industrial density in some areas. For example, it is found that the most construction bricks are produced in Nakhon Si Thammarat Province, 80 factories, the second is 66 factories in Angthong Province in Thailand. 3263 JOURNAL OF CRITICAL REVIEWS ISSN- 2394-5125 VOL 7, ISSUE 19, 2020 Also, it is distributed in the central lowland areas such as Sing Buri Province, Ratchaburi Province, Phra Nakhon Si Ayutthaya, Pathum Thani, Nonthaburi and Suphan Buri, etc. The manufacturers will form a group; each group has 50 entrepreneurs to 500 people, which is considered a distribution of income to an excellent local community. The clay brick making industry is a construction material that has been done for a long time, most of which are made as a family industry, both small and large. Following the ability of entrepreneurs, which can generate income for the community, both for living or make a good income depending on many factors. The first production was using simple equipment. Later, a factory was set up and machinery was used to help increase production. Raw materials used in the production are clay and sand, most of which can be obtained from nearby sources using firewood and rice husk as fuel. The general production process is to ferment the clay and mix until, and forming the desired size, then exposed to wind or sunlight. When dry, then burn it in a brick kiln, then a cold kiln then unloaded the bricks for further use. Production of clay bricks and construction materials from terracotta of the producer commun ity in Pak Kret district Nonthaburi Province has a business about the production of clay bricks in each of the 11 sub-districts of Pak Kret District Nonthaburi Province, except Kret Island. Which is the operator of 58 clay bricks manufacturing businesses, 23 transportation operators and 18 clay brick, distributors. In Pak Kret district, Nonthaburi will encounter production and transportation problems. The use of clay bricks has become less popular because of the replacement of other materials. It is also fo und that the production of clay bricks causes problems of dust and smoke from the combustion of rice husk used as fuel, which has the danger or consequence is the smoke from the burning and affecting global warming. Workers and nearby villagers inhaled the smell of smoke caused by incomplete combustion. Including poor visibility, an annoyance to neighboring communities, which is the result of research that recommends building closed kiln systems with training or publicity for safe production [ 2]. Although the government has supported the logistic management of the pottery industry, there have not been any guidelines for the management of clay bricks in any part of Thailand. Therefore, it is interesting that industrial establishments What is the type of clay brick in Nonthaburi Province, and how are the logistics management and the current management of the existing establishments active and potential? This research project is in line with Thailand's 2nd Strategic Logistics Development Plan, which is Strategy 1, to increase supply chain management capabilities. Strategy 2 Promote trade and service businesses in border town areas. Strategy 3 Develop transport services and logistics networks along the route and Strategy 5 Promote the development of services and expand the network of logistics service providers. It is also in line with the 12th National Economic and Social Development Plan, which is Strategy 5, creating links with countries in the region for economic and social security. And ASEAN strategy, which is Article 1, strengthening the competitiveness of products, services, and investments, Article 6—increasing the country's economic potential. Also, from the above question, if the search for the logistics management of the clay brick industry, Nonthaburi Province, leads to the efficiency analysis and evaluation of the logistics management potential of the clay brick industry. Which has driven among entrepreneurs to improve the efficiency of the logistics system in the manufacturing sector (business logistics improvement) in line with the Thailand Logistics Development
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