Third-Party Logistics Provider Cluster Initiation using ITAP Mechanism

The fierce competition from the free market has alarmed many companies in transportation industry in Thailand to learn to change and improve their ability to compete in the market. Most of third-party logistics providers (3PLPs) are smallto medium-sized companies that have been in the business for long time but lack of systematic approach to manage fast-changing customers’ demands nowadays. One of the leading logistics company (LLC) and a non-profit transportation group of companies (ANFTE) are seeking common goal of improving 3PLPs in their respective networks. Suranaree University of Technology (SUT) and Industrial Technology Assistance Program (ITAP) Suranaree University of Technology network were approached by these two parties and requested to find an expert team to consult and implement quality system to improve the operation of their 3PLPs. Thai Foundation Quality System (TFQS) developed by National Science and Technology Development Agency (NSTDA) was selected as an appropriate tool to provide groundwork and develop quality foundation for those 3PLPs. With the ITAP mechanism, it was proven that pilot groups of 3PLPs selected from both parties have successfully implemented TFQS in approximately 12-month period. This paper exemplifies the tripartite cooperation from companies in transportation industry, ITAP and Suranaree University of Technology in order to strengthen competitiveness of companies in this service industry. It is obvious that ITAP mechanism and TFQS are essential factors that contribute to the success of these two projects. Moreover, the ITAP mechanism has merged the common goal and promoted the critical linkage between these two parties. This leads to the agglomeration of 3PLPs as a cluster that is able to take advantage of synergy cooperation as well as seek continuous improvement in the future to maintain their competitiveness.