The study of a small-sized Thai chili paste supply chain

Abstract

The highly competitive lifestyle results in the increasing demand for ready to eat food. In Thailand, chili paste is a traditional food that has been passed down from generation to generation. It plays an important role in Thai meals and becomes more popular in convenience stores and hypermarkets. The objectives of this study are to explore the current supply chain of a small-sized Thai chili paste enterprise, to analyze the business processes and identify the problem and provide the recommendation for improvement. First, we observe and perform an in-depth interview of the owner and staff for realizing the business process. Then, the result is analyzed by using the Integration Definition for Function Modeling (IDEF0) to show the existing stakeholders and current key activities in Thai chili paste. The major problems are lack of data collection, low forecast accuracy, lack of inventory management, and low productivity. The proper controls are proposed. Finally, our guidelines could enhance the productivity of other small-sized enterprises which can increase the potential capability for domestic and international markets.