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Abstract:
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This study aims to examine the logistics system and analyze the logistics risk of fresh flowers retail shops in Bangkok Metropolitan areas. The needed information was collected by means of questionnaire from 400 samples of fresh flowers shop operators as well as by in-depth interview with 6 fresh flowers shop operators. The analysis was performed upon the results of descriptive statistics including frequency and percentage, and Likert scale rating.
Regarding the logistics system, the study found that in business management, the fresh flowers retail shop operators generally ordered cut flowers from horticultural farms and the latter would be responsible for the transportation cost and the grading/grouping of flowers. Their trading relationship has been quite short, no longer than 10 years. Meanwhile, the target customers of the fresh flower retail shops were reported to be general buyers, flowers sellers in other provinces, and event organizing firms or companies all over the country. The peak sales normally take place when people cerebrate special occasions, during festival season, and in the popular months for wedding. In terms of input procurements, most fresh flowers retail shops were found to get supply of fresh flowers from different provinces of Thailand as each area is able to grow well different kinds of flowers depending on the local climatic and geographic features, and to import some flowers from such countries as Malaysia, China, and the Netherlands. In the aspect of inventory management, most fresh flowers retail shop operators would try to sell out their flowers within one day to ensure the freshness of their flowers for the customers. In terms of distribution, they delivered fresh flowers to end-customers through such transportation modes as inter-city coach, car, and airplane. In brief, they buy fresh flowers from both domestic growing areas and foreign countries for distribution throughout Thailand.
The analysis of logistics risk was conducted in six sources of risk includingbusiness management, procurement of fresh flowers, purchase order, transport, inventory, and market and services. It was found that those fresh flowers retail shop operators having been in the business for less than ten years faced high risk in terms of procurement of fresh flowers when the supply is low or scarce, and transport when it is disrupted by accident. Meanwhile, entrepreneurs who have been running the business for more than a decade will have high risk from purchase order, especially the risk from cost per unit, and damages from shipping. On the contrary, it’s found that the risk from inventory, marketing and services are indifferent for entrepreneurs with less than 10 years or over 10 years of operation.
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