Guidelines of Logistics Cost Reduction: a Case Study of Cassava Farmers in Bankos Sub-district Muang District Khon Kaen Province

Abstract

                    The objective of this research was to find the logistics cost reduction guideline a case study of cassava farmers Bankos sub – district, Muang District, Khon Kaen province by using value stream mapping and activity based costing system. According to the in-depth interview of 373 farmers, the major finding revealed that applied the value stream mapping to analyze the loss of each supply chain stream can reduce time in each supply chain stream as follows the first supply chain stream, from 5,818.84 minutes can be reduced to 5,328.84 minutes or reduce 8.42 %, the second supply chain stream, from 5,822.17 minutes can be reduced to 5,328.84 minutes or reduce 8.47 %. The result analysis activity found that were 334.79 percent of total sales by divided the logistics into three parts: the procurement cost, the highest cost was 209.22 percent, the freight cost was 103.33 percent and the production movement was 22.24 percent. The result also found that the producers can understand logistics cost structures from any activities which can lead to make decision non-value activities reduction. Moreover, the logistics cost guideline can be done by networking of cassava producers for production planning under the supported by organization and setting distribution center.