Role of Inventory Management on Competitive Advantage of Small and Medium Companies in Thailand

Pornthep Kaewchur, Et Al

doi:10.17762/turcomat.v12i8.4000

Abstract

The purposes of this research were to study the inventory management factors affecting the competitive advantageand confirm the inventory management factors affecting the competitive advantage. This research was a mixed methods research.First, the quantitative data was collected from the sample of 280 small and medium companies in Thailand. This research focusedon 14 observable variables. Then, the qualitative data was collected from nine key informants who were the experts in theinventory management field. The results indicated that the structural equation model was consistent and harmonious with theempirical data with the model consistency indices as follows: 2= 106.32, df = 69, 2/ df = 1.54, CFI = 0.99, GFI = 0.95, SRMR= 0.042, RMSEA = 0.044. Furthermore, the inventory control systems had the greatest influence on the competitive advantage,followed by inventory control practices, and information technology, respectively.

Highlights

At present, Small and medium enterprises (Medium) Enterprises (SMEs) are start-ups in expanding into larger businesses
Research results from 280samples of Small and Medium Enterprises (SMEs) were collected, including micro businesses, 21 companies (7.5%), small businesses, 216 companies (77.14%)and medium enterprises 43 companies (15.36%)
This research was a research on inventory management factors affecting competitiveness through a combination of research

Summary

Introduction

Small and Medium Enterprises (SMEs) are start-ups in expanding into larger businesses. In 2019, the finished goods inventory index was 135.5 billion baht, an increase from 123.2 billion baht in 2018, reflecting an increase in the inventory of operators. This may result from selling fewer products than planned or producing more products than customers' requirements and may be the result of the slowdown in the domestic economy and the decline in imports and exports. While the Industrial Production Index was 101.6 billion baht, down from 105.4 billion baht in 2018, reflecting that operators have cut production due to the volatile situation of the world economy, which resulted in the contraction of exports. Reducing inventory or reducing inventory costs is a key factor in building competitiveness

Methods

Results

Conclusion