Pdf logistics and transport increasingly play a pivotal role in international trade relations. The overall index is calculated by analysing the six main subdimensions listed above. Logistics performance index 202014 survey and report fiata world congress singapore multimodal transport institute meeting october 18, 20. Logistics performance index lpi logistic performance index lpi is an interactive, internationally developed tool to explore the performance of trade logistic services among trading countries, its level of competitiveness and area of improvement. The purpose of this study is to propose ways for improving the current logistics performance index published by the world bank. Therefore, this paper aims to analyse the importance of logistics performance in. 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 data comes from a survey of more than 1,000 logistics.
To set the logistics performance index each indicator is evaluated and a grade is assigned to. Probably the first attempt to define logistic performance was made by chow et al. The logistics performance index is based on a global survey of logistics. It is the weighted average of the country scores on six key dimensions. The efficiency of south africas customs clearance procedures i. Efficiency of customs clearance process 1low to 5high definition. 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 world banks logistics performance index lpi and drivers of logistics performance prepared for the roundtable on logistics development strategies and their performance measurements 910 march 2015, queretaro lauri ojala turku school of economics, finland dilay celebi istanbul technical university, turkey, february 2015. Logistics performance has become a decisive factor in export competitiveness. Scores of the six components across the 2012, 2014, 2016 and 2018 lpi surveys were used to generate a big picture to better indicate countries logistics performance. In 2012, 155 countries were ranked in the international lpi and 145 countries in the domestic lpi. Logistics performance index is a benchmarking tool developed by the world bank that measures performance along the logistics supply chain within a country. Connecting to competetrade logistics in the global economyis critical for developing countries to harness global trade and reap the benefits of globalization. Indias logistics sector to reach usd 215 bn by 2020.
Sri lanka logistics performance index logistics performance index. Obesity is a global ticking timebomb with huge potential negative economic and health impacts, especially for the poor. Benchmarking tool to identify logistics bottlenecks. Past years reports and related materials full report 2018 pdf. Since then, most of the literature on logistics performance appears to focus on models and frameworks clarke and gourdin, 1991. Quality of trade and transportrelated infrastructure 1low to 5high. Allowing for comparisons across 155 countries, the index can help countries identify challenges and opportunities and improve their logistics performance. Comparative analysis of logistics performance index lpi. 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. World bank south africas logistics performance outperforms that of its regional peers. Considering 91 countries with seaports, this study conducted an empirical inquiry into the broader economic contribution of seaborne trade, from a port infrastructure quality and logistics performance perspective.
The logistics performance index lpi uses a structured online survey of logistics professionals at multinational freight forwarders and at the main express carriers. 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. The impacts of port infrastructure and logistics performance. Pdf the importance of the logistics performance index in. Proposals for improving the logistics performance index.
Key findings of the 2018 international logistics performance index 10 logistics performance is strongly correlated with the quality of service 14 logistics performance is more than income 15 trends over the past four reports 16 weighted international lpi scores and ranks 2012 18 16 2. At the same time, and as a result of the continuous enlargement processes it has undergone, the european union eu is a very interesting case to study how the reforms that enhance logistics performance have affected exports. Logistics is a backbone for the global supply chains. The 2012 lpi data are based on the 2011 survey, which was administered to nearly 1,000 respondents at international logistics companies in 143 countries domestic performance. The source of the logistics data is the world development indicators the world bank, 2017 and the core measure is the overall logistics performance index lpo, measured on a scale of 1 low to 5 high. As of 2016, an estimated 44 percent of adults more than 2 billion worldwide are overweightobese, and over 70 percent of them live in low or middleincome countries, dispelling the myth that obesity is a problem only in highincome countries. The conceptual framework logistics is, by definition, a functional system which consists in combining and coordinating the operations of different modes. The logistics performance index lpi was first published in 2007 coverage. Logistics performance gap analysis see figures 1 and 2 can be used to compare key performance indicators with worldclass, or bestinclass, indicators. Lpi is a survey scores are confidence intervals ii 12 2.
In these figures, the inside blue line represents the performance of the supply chain being measured, while the red line on the outside. Frequency with which shipments reach consignee within scheduled or expected time 1low to 5high logistics performance index. The 2018 logistics performance index lpi scores countries on how efficiently they move goods across and within borders. Overall results logistics friendly logistics unfriendly partial performers consistent performers 15. Policy makers are interested in logistics performance indicators primarily because of the potential for improved transport services to promote economic development. Data are from 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 logistics performance index is based on a global survey of logistics experts, which can be biased towards a subjective view on different countries logistics systems, which leads to a potentially skewed rating. The logistics performance effect in international trade. Full report 2007 pdf 535k index chart lpi 2007 jpg 285k press release lpi 2007 feature story lpi 2007. The importance of the logistics performance index in international trade article pdf available in applied economics 4624 may 2014 with 5,143 reads how we measure reads. The importance and determinants of logistics performance.
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 shipments reach. Success in integrating global supply chains starts with the ability of firms to move goods across borders rapidly, reliably, and cheaply. Thus, this study is expected to be a crucial contributor to the literature. 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. The aim of this article is to analyse the impact that each of these components has on trade in emerging. This measure is the weighted average of the country scores.
The assessment and measurement of the performance of logistical operations across the supply chain are critical for the attainment of competitive advantage griffis et al. Whereas most of the logistics performance has focused on investigating operational and trade. 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. The world banks logistics performance index lpi and. Key findings of the 2018 international logistics performance index 10 logistics performance is strongly correlated with the quality of service 14 logistics performance is more than income 15 trends over the past four reports 16 weighted international lpi scores and ranks 2012 18 16. Allowing for comparisons across 160 countries, the index can help countries identify challenges and opportunities and improve their logistics performance. Frequency with which shipments reach consignee within scheduled or expected time 1low to 5high. Logistics comprises a network of services that supports the physical movement of goods within and across borders. Trade logistics in the global economy, ranks 160 countries on a number of dimensions of tradeincluding customs performance, infrastructure quality, and timeliness of shipmentsthat have increasingly been recognized as important to development. The 2012 logistics performance index 5 new features of the 2012 survey 6 key findings from the 2012 lpi 6 2. Competence and quality of logistics services 1low to 5high logistics performance index. The aim of this article is to analyse the impact that each of these components has on trade in emerging economies using a gravity model. The index ranges from 1 to 5, with a higher score representing better performance.
The importance of the logistics performance index in. Therefore, this paper aims to analyse the importance of logistics performance in regard to. 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. The proposal is to identify the opportunities and logistic obstacles faced by the countries in the international trade. This is the third edition of connecting to compete, a report summarizing the findings from the new dataset for the 2012 logistics performance index lpi and. Lpi methodology 5000 country assessments by freight forwarders.
World bank through its trade and transport departments established. Understanding logistics performance measurement and. Logistics performance index 2007, 2010, 2012, 2014, and 2016. Investment in quality improvement of port infrastructure and its contribution to economy are often questioned by politicians, investors and general public. This index is published on a biannual basis by the world bank. Comparative analysis of logistics performance index lpi of. Focusing on world banks logistics performance index, dated back to 2007, thailands logistics has not improved. Ease of arranging competitively priced shipments 1low to 5high logistics performance index. The research that is reported in this paper had the purpose of understanding what users think of a specific logistics performance evaluation tool. Despite being the most comprehensive data source for country logistics and trade facilitation, the lpi has two important limitations. The aggregated lpi combines the four most recent lpi editions. The paper explores logistics performance trend together with gdp per capita of year 2007, 2010, 2012, 2014 and 2016.
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