Ease of arranging competitively priced shipments 1low to 5high logistics performance index. How countries stack up t h e l e a d e r s t h e l a g g a r d s h i g hi n c o m e c o untries d m i n a t e t h e t o p 1 0 a n d h a v e c h a n g e d l i t t l e s i n c e 2 0 1 0 1. The logistics performance index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance. An improved composite index mingxuan lu 1,2, ruhe xie 3, peirong chen 1,4, yifeng zou 3 and jie tang 3 1 school of economics and statistics, guangzhou university, guangzhou 56, china. The impact of logistics performance on trade hausman 20. This chart shows logistics performance index 2016 based on a worldwide survey of global freight forwarders and express carriers, the logistics performance index is an interactive benchmarking tool developed by the world bank that measures performance along the logistics supply chain within a country. Allowing for comparisons across 160 countries, the index can help countries identify challenges and opportunities and improve their logistics performance. A dea logistics performance index article pdf available in journal of applied economics 201. The logistics performance index is based on a global survey of logistics experts, which can be biased towards a subjective. The conceptual framework logistics is, by definition, a functional system which consists in combining and coordinating the operations of different modes of transport as a fundamental prerequisite for. The paper explores logistics performance trend together with gdp per capita of year 2007, 2010, 2012, 2014 and 2016. A dealogistics performance index article pdf available in journal of applied economics 201. Logistics and transport increasingly play a pivotal role in international trade relations. To set the logistics performance index each indicator is evaluated and a grade is assigned to it, which may varies within a range from 1 to 5, being 5 the best score.
The research that is reported in this paper had the purpose of understanding what users think of a specific logistics performance evaluation tool, called mmogle. In developing the 2012 logistics performance index lpi for east africa, reference was made to a number of similar initiatives developed elsewhere. Paper two outlined the use of the logistics performance index lpi developed for the world bank in driving improvement in trade logistics with a case study of turkey. The aim of this paper is to propose a data envelopment analysis dea approach to compute a synthetic index of overall logistics performance dealpi and benchmark the logistics performance of the countries with lpi.
Among all countries, germany has been the country with the best performance, with a score. The process adopts a business process management bpm logic with two core benchmarking analytic steps. This is the sixth edition of connecting to compete, a report summarizing the findings from the new dataset for the logistics performance index lpi and its component indicators. Taking a supply chain perspective, logistics performance refers to cost, time, and complexity in accomplishing import and export activities. It aims to serve as an indicator of efficiency of logistical services necessary for promoting exports in particular and economic growth in general. Such initiatives include the world bank logistics performance index, the 2011 ksc logistics performance index for east africa. Logistics can be described as having the right type of product or service at the right place, at the right time and in the right condition. World banks logistics performance index lpi and drivers of logistics performance 9 a brief overview of turkey turkey is an uppermiddleincome country with a population of 75. Frequency with which shipments reach consignee within scheduled or expected time 1low to 5high. Worlds top 25 best countries for logistics performance in. Jan 18, 2012 this paper studies the impact of logistics performance on global bilateral trade.
The importance and determinants of logistics performance. The impact of logistics performance on trade hausman. Logistics comprises a network of services that supports the physical movement of goods within and across borders. Data are from the logistics performance index surveys conducted by the world bank in partnership with academic and international institutions and private companies and individuals engaged in international logistics. The world banks logistics performance index lpi and. The global logistics industry has grown significantly and logistics has been an important part of the business. The 2018 logistics performance index lpi scores countries on how efficiently they move goods across and within borders. This paper studies the impact of logistics performance on global bilateral trade. The purpose of this study is to propose ways for improving the current logistics performance index published by the world bank. Quality of trade and transportrelated infrastructure 1low to 5high. The integrated logistics performance index ilpi can be created similarly to the lpi.
The logistics performance gap between countries persists between the bottom and top performers. It is followed by luxembourg, sweden, netherlands and singapore. Pdf the importance of the logistics performance index in. Malaysias logistics performance index, 20142016 component ranking 2014 2016 customs and border clearance efficiency 27 40.
Full report 2007 pdf 535k index chart lpi 2007 jpg 285k press release lpi 2007 feature story lpi 2007. India has improved its rank in all the six components of logistics performance index, it added. Appendix e results from the world bank logistics performance index survey 20152016 85 box 1. This paper develops a national logistics benchmarking process based on the logistics performance index lpi database maintained by the world bank. It is the weighted average of the country scores on six key dimensions. Logistics performance index lpi six subindicators online tool to show the evolution in time of the quality of port infrastructure in a country 1extremely underdeveloped to 7well developed and efficient by international standards and to compare this figure with other countries. Competence and quality of logistics services 1low to 5high logistics performance index. Infrastructure and trade facilitation remain at the core of assuring basic connectivity and access to gateways for most developing countries. Based on a worldwide survey of global freight forwarders and express carriers, the logistics performance index is a benchmarking tool developed by the world bank that measures performance along the logistics supply chain within a country. The logistics performance index and its indicators what is the logistics performance index. Built on 5,000 country assessments by 1,000 logistics professionals captures perceptions published every 2 years.
A key concern for all countries the contrast is striking between the top and bottom lpi quintiles, especially in three areas. The aim of this article is to analyse the impact that each of these components has. The logistics performance index the lpi consists of both qualitative and quantitative measures and helps build profiles of logistics friendliness for these countries. The logistics performance index lpi is an interactive benchmarking tool created by the world bank to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.
Quality of private logistics services regulation related to logistics solicitation of informal payments in connection with logistics activities worsened about the same 2333 since 2015, please assess the following developments in your country of work afghanistan much decreased the demand for traditional freight forwarding as a commercial service. The lpi is based on a worldwide survey of operators. Logistics is a backbone for the global supply chains. For the 2nd time running, germany has ranked number 1 among 160 countries according to the latest world banks logistics performance index lpi report entitled connecting to complete 2016.
The proposal is to identify the opportunities and logistic obstacles faced by the countries in the international trade. May 05, 2020 indias logistics sector to reach usd 215 bn by 2020. The logistics performance index overall score reflects perceptions of a countrys logistics performance based on the efficiency of the customs clearance process, quality of trade and transportrelated infrastructure, ease of arranging competitively priced international shipments, quality of logistics services, ability to track and trace consignments, and frequency with which. Malaysia logistics performance index it helps malaysia to be the preferred logistics gateway to asia and global. Unbundling logistics performance supply chain reliability. The lpi 2018 allows for comparisons across 160 countries. The logistics performance index lpi was established with a view to bridging this gap. Frequency with which shipments reach consignee within scheduled or expected time 1low to 5high logistics performance index. Each subindex reflects an aspect of international logistics, so, in order for all of them to be comparable and eligible for aggregation due to each. The decline was attributed to the drop in six components of the lpi table 1. Furthermore, the contribution of excellent logistics and supply chain management in manufacturing and. This report presents the findings of the second edition of connecting to compete, a report on the new dataset for the 2010 logistics performance index lpi and its component indicators.
The capacity of developing countries to efficiently move goods and connect manufacturers and consumers with international markets is improving albeit slowly. The logistics needs performance measuring, as well, but the philosophy of controlling and logistics is not the same, the differences can be seen in table 1. The index ranges from 1 to 5, with a higher score representing better performance. Proposals for improving the logistics performance index. In the logistics performance index lpi 2016, malaysia ranked 32nd out of 160 countries compared with 25th ranking in 2014. The importance of the logistics performance index in. The lpi methodology because logistics has many dimensions, mea. Indias logistics sector to reach usd 215 bn by 2020. Logistics performance index is a benchmarking tool developed by the world bank that measures performance along the logistics supply chain within a country. It could consist of six subindexes, each of which may comprise several indicators, which necessitates the inclusion of subindex levels see fig. The logistics performance index lpi measures the ontheground efficiency of trade supply chains or logistics performance. Logistics performance index 2016 europe and central asia latin america and caribbean 27% 50% ict 34% 32% subsaharan africa 65%. Focusing on world banks logistics performance index, dated back to 2007, thailands logistics has not improved.
But much more is needed to close the existing performance gap between high and low performers. The logistics performance index lpi analyses differences between countries in terms of customs procedures, logistics costs and the quality of the infrastructure for overland and maritime transport. Trade logistics improving in developing countries, but more needs to be done. Allowing for comparisons across 155 countries, the index can help countries identify challenges and opportunities and improve their logistics performance. The logistics performance index 10 first report in 2007 every 2 years source of data is suppliers of logistics services freight forwarders, express carriers rates logistics performance on a scale of 1 to 5. Thus, this study is expected to be a crucial contributor to the literature. Further, in terms of 6 subindices of the logistics performance index customs, infrastructure, international shipments, logistics. The global ranking of the world banks 2016 logistics performance index shows that india jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall logistics performance. In malaysia, logistics are now recognized as strategic industry that positively contribute to gross domestic product gdp and performance of logistics is foremost significant. The importance and determinants of logistics performance of. Supply chain reliability and service quality are strongly associated with logistics performance. About lpi lpi 2018 ranks countries on six dimensions of trade.
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