Measuring logistics performance
In the last step, we considered some factors that could influence logistics performance. This step looks at how international logistics performance is officially measured.
The Logistics Performance Index (LPI) is a multi-dimensional measure that is assessed by the World Bank every two years. It performs as an international benchmark tool, measuring the performance of logistics in each country and consisting of both qualitative and quantitative measures.
The LPI helps countries to recognise their logistics performance status and identify the bottlenecks and challenges to be improved. It is a weighted average score using six key dimensions. Let’s look at what’s measured within these six dimensions:
- Customs – efficiency and clearness of customs
- Infrastructure – availability of infrastructure for trade and transport
- International shipments – availability and ease of arranging fewer costly shipments
- Logistics quality – quality of logistics services
- Tracking and tracing – traceability of the current logistics system
- Timeliness – proportion of on-time deliveries/delays
The World Bank report, which started in 2007, is published every two years. The regular measure provides each country an opportunity to consider its improvement or decline during this time. This measure incorporates both domestic and international logistics performance.
Using the 2018 World Bank report, consider which country has the best logistics performance status during the last two years. Discuss in the comments area why it performs well.
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