Post on 23-Feb-2018
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Factors Affecting Logistics Performance:
A global supply chain perspective
A thesis submitted
By
Zohaib Aziz Shaikh (9374)
To
Department of Business Administration
n partia! fu!fi!ment of
The re"uirement for the
De#ree of
$AST%& ' BS*%SS AD$*ST&AT'*
n
Supp!y +hain $ana#ement
This thesis has been
A,,epted by the fa,u!ty
A+-T. ' BS*%SS AD$*ST&AT'*
$r/ arhan$ehboob
Ad0isor
$r/ Syed A!i &aza
$ana#er &esear,h
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Acknowledgement
irst of a!! 1ou!d !ike to thank A!mi#hty A!!ah the #reatest of a!! for #i0in# me the
stren#th and determination to ,omp!ete this resear,h/ Se,ond!y 1ou!d !ike to thank my thesis
super0isor $r/ arhan $ehboob for his mar0e!!ous support2 he!p and super0ision throu#hout this
study/
-ast but not the !east 1ou!d !ike to thank my parents and friends for their ,ontinuous
en,oura#ement and support not ust durin# this resear,h 1ork but throu#hout my !ife/
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Table of Contents
A,kno1!ed#ement////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////i
Abstra,t////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////0
+hapter 5 ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
/ ntrodu,tion//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////6
/ &esear,h Ba,k#round///////////////////////////////////////////////////////////////////////////////////////////////////////////3
/6 8rob!em Statement////////////////////////////////////////////////////////////////////////////////////////////////////////////////3
/3 &esear,h uestion////////////////////////////////////////////////////////////////////////////////////////////////////////////////3
/4 :ypotheses////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////4
/; &esear,h 'be,ti0e///////////////////////////////////////////////////////////////////////////////////////////////////////////////4
/< &esear,h S,ope/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////4
/7=ustifi,ation of Study//////////////////////////////////////////////////////////////////////////////////////////////////////////////;
/> -imitations of Study/////////////////////////////////////////////////////////////////////////////////////////////////////////////;
+hapter 5 6///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
6/3/ Study ?ariab!e @ -o#isti,s 8erforma///////////////////////////////////////////////////////////////////////////////////>
6/3/6 ndependent ?ariab!e ua!ity of port infrastru,ture////////////////////////////////////////////////////9
6/3/3 ndependent ?ariab!e 6 &oad density///////////////////////////////////////////////////////////////////////////
6
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6/3/4 ndependent ?ariab!e 3 Transport ser0i,es///////////////////////////////////////////////////////////////////
6/3/; ndependent ?ariab!e 4 -ead time to eCport/////////////////////////////////////////////////////////////////6
6/4 +on,eptua! frame1ork///////////////////////////////////////////////////////////////////////////////////////////////////////3
6/; &esear,h $ode!//////////////////////////////////////////////////////////////////////////////////////////////////////////////////4
+hapter 5 3/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////;
3/ $ethodo!o#y//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////eCamines 1hi,h fa,tors inf!uen,e the "ua!ity of port
infrastru,ture of Spain/ Statisti,a! data of 94 ,ompanies has been used in this resear,h/ a,tor
ana!ysis2 t tests and eCp!oratory fa,tor ana!ysis are used/ n this resear,h three 0ariab!es are used
in this study in,!ude "ua!ity of port infrastru,ture2 te,hno!o#y system on port and the on time
re!iabi!ity of ship arri0a! and departure/ &esu!t ,on,!uded that a!! the 3 0ariab!es are positi0e
,orre!ated to the "ua!ity of port infrastru,ture/ :e su##ests that po!i,y makers and the seaport
authorities 1ou!d use different te,hno!o#ies for enhan,in# the "ua!ity of port and makin# the
effi,ient ,ustom ,!earan,e 1ith that a!so in,rease the on time ship arri0a! and departure/
/'/'( !ndependent 1ariable / 3 oad density
Bose (63) aspe,ts 1hi,h inf!uen,e road density and effi,ien,y in nationa! hi#h1ays
1ith the he!p of statisti,a! data from (9;>@997)/ They used ordinary !east s"uare and re#ression
te,hni"ue/ The 0ariab!es are #ro1th in road density2 #ro1th in hi#h1ay density and effi,ien,y of
road density/ &esu!ts ,on,!ude that measures the road density a,ross the years ha0e been
impro0ed in effi,ient manner but further impro0ement re#ardin# #ro1th in road density of
nationa! hi#h1ay in mu,h needed in se0era! states of ndia/ :e su##ests that in,reased the
hi#h1ay road density2 #ro1th of road density and "ua!ity of the roads be,ause "ua!ity and
#ro1th of road density p!ay a maor part in su,,essfu! ,ontro! strate#y in road transport/
+ropper2 Friffiths L $ani 999inspe,ts the fa,tor of road density and popu!ation
pressure in a ,ountry 1ith the he!p of statisti, data from (979)/ They used e,onometri,2
re#ression te,hni"ue and ordinary !east s"uare te,hni"ue in this study/ The 0ariab!es they
,onsidered in this study are road density2 A#ri,u!ture househo!d density2 ,!eared !and and the
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road net1ork/ &esu!ts ,on,!ude that the profitabi!ity for reimbursement the territory for
a#ri,u!ture prob!em depend on 0arious physi,a! fa,tors to pro0ide some natura! prote,tions from
forest/ They su##est that in,reased the road density ,o0ers the forest and ,!earin# the !and
be,ause the pressures of popu!ation in,reases so need to bui!d the hu#e road infrastru,ture by
redu,in# the forest and ,!earin# the !and/
!im1en#u2 unes2 :eadey L .ou 63s,rutinize the inf!uen,e of road infrastru,ture in
de0e!opin# ,ountries by usin# the dataset of year 66/ Te,hni"ues are used in this resear,h are
"uantitati0e te,hni"ues su,h as ordinary !east s"uare re#ression ('-S) and ,orre!ation/ The
0ariab!es are used in this study are roads2 different !anes of roads2 road infrastru,ture2 pa0ed road2
size of the roads and road density/ &esu!ts ,on,!uded that the re!ationships bet1een the 0ariab!es
are si#nifi,ant/ They ,on,!uded that the tota!numbers of !anes are important for the effi,ient road
infrastru,ture/ They su##est that a!! the po!i,y makers and de,ision makers of road infrastru,ture
shou!d ,reate mu!tip!e !anes for hea0y ,ontainerized traffi, from that effi,ien,y of !o#isti,
performan,e of a ,ountry shou!d in,rease and a!so speed up the !o#isti, performan,e of the
,ountry/
/'/'4 !ndependent 1ariable ( 3 Transport services:
Tur0ey and $ohrin# (97;) empiri,a!!y identify the mar#ina! ,ost pri,in# of s,hedu!ed
transport ser0i,es/ n this study ,ointe#ration and ,ross se,tiona! te,hni"ue are used/ The
0ariab!es are ,onsider for this study are tota! transport ,ost2 mar#ina! ,ost2 users ,ost and
produ,er ,ost/ &esu!ts ,on,!ude that tota! ,ost of transport ser0i,es is ,a!,u!ated by the mar#ina!
,ost and the fares shou!d be set be!o1 the mar#ina! pri,e of produ,er ,ost/ They su##est that
#o0ernment subsidies shou!d be in,reases on !o,a! transport ser0i,es 1hether the ,onsumer
in,ome !e0e! is risin#/
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:ibbs (97) empiri,a!!y identify the maintainin# transport ser0i,es in rura! areas/ n this
study 'rdinary !east s"uare and ,ross se,tiona! te,hni"ue has been used/ The 0ariab!es are
,onsidered for this study are roads2 infrastru,ture and mode of transport in rura! areas/ &esu!ts
,on,!ude that the e!e,ted representati0es of #o0ernment offi,ers shou!d take ,are of
infrastru,ture of roads in the rura! areas and en,oura#e the !ife of rura! areas peop!es 1here they
,an enoy ea,h ne,essity of transport ser0i,es/ :e Su##est that the main aim of #o0ernment
offi,ia!s of rura! areas to prepare a po!i,y 1here they en,oura#e the f!eCibi!ity of the transport
ser0i,es in the rura! areas/
Kidokoro (66) empiri,a!!y identify the effe,ts of pri,e re#u!ation in ,ontra,tin# out
transport ser0i,es/ n this study used non@parametri, statisti,a! and e,onometri, te,hni"ues/ The
0ariab!es for this study are pri,e2 "ua!ity ser0i,es2 tota! ,onsumer surp!us and transport ,ompany
profits/ &esu!ts ,on,!ude that the !o,a! #o0ernment #ot the 0arious information re#ardin# the
pri,e so they maCimize their profits and net ,onsumer surp!us than the pri0ate transport firms/ :e
su##est that both the #o0ernment and pri0ate transport ha0e #ot different types of pri,in#
strate#ies but the !o,a! #o0ernment #ot the information about the pri0ate firm pri,in# strate#ies
so #o0ernment ,an redu,e the pri,es so that pri0ate firm transport e0en do not a,hie0e a break
e0en ,ost/
/'/'5 !ndependent 1ariable 4 3 Lead time to e6port:
Apte and ?is1anathan (6) eCamine the si#nifi,an,e of redu,in# the !ead time/ n this
resear,h %&8 (enterprise resour,e p!annin#) and $&8 (materia! re"uirement p!annin#) te,hni"ue
has been used/ The key 0ariab!es are used in this resear,h in,!udes the redu,in# the !ead time and
impro0es the effi,ien,y of o0era!! pro,ess/ &esu!ts ,on,!ude that redu,in# the !ead time 1ou!d
#i0e the f!eCibi!ity and responsi0e distribution net1ork/ They su##est that redu,in# the !ead time
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that 1ou!d in,rease the ,ustomer satisfa,tion2 in,rease the f!eCibi!ity of the pro,ess and a!so
minimizes the in0entory/
+han#2 Zhan#L -i 6 eCamine the affe,tin# fa,tor of !ead time of ,hina/ Statisti, data
had been used from period 64@6>/ Statisti, and e,onometri, te,hni"ue had been used in this
study/ our 0ariab!es are used in this study in,!ude !ead time to eCport2 transport infrastru,ture2
manufa,turin# and number of ports in,!udin# dry and sea ports/ &esu!ts ,on,!ude that a!! the
0ariab!es are positi0e!y ,orre!ated to the redu,in# !ead time/ They su##est that transport
infrastru,ture authorities and the manufa,turer shou!d ,raftin# the strate#ies in a 1ay that
minimizes the !ead time from the in,reases the ,ustomer satisfa,tion and a!so in,rease the FD8
of the ,ountry/
*ordas2 8ina!iL Frosso 6) road density (Bose 632 +ropper2 Friffiths L
$ani 999 L !im1en#u2 unes2 :eadey L .ou63) and !ead time to eCport (Apte L
?is1anathan 662 +han#2 Zhan# L -i 6 L *ordas2 8ina!i L Frosso 6
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/'4 esearch Model:
The mode! proe,ted for the study is as fo!!o1s
Figure /'$: a,tors affe,tin# -o#isti, 8erforman,e
Sour,e: AuthorIs %stimation
&oad Density
(&D)Transport Ser0i,es
(TS)
-ead Time %Cport(-T%)
ua!ity of 8ort nfrastru,ture('8)
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Chapter # (
Methodology
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n des,ripti0e stats sho1s the statisti,a! Summarization of a!! the 0ariab!es that are !inked
in this study 1hi,h ha0e been seen in be!o1 tab!es 1ith the interpretation of the data/
4'/'$ Logistic Performance !nde6:
Table ?o 4'/'$: >escriptive &tatistics: Logistic Performance !nde6
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Fermany and *ether!ands i/e/ area of 4/2 so this is ,!ear!y sho1s that most of the ,ountries ha0e
#ood o0era!! !o#isti, performan,e indeC/ =amai,a2 8ara#uay and Armenia ha0e the 1orst !o#isti,
performan,e ratin# in this study i/e/ in the re#ion of 6/4 for both se!e,ted years 1hi,h is not #ood
be,ause the a0era#e ratin# of this #roup is 3/;/ So these ,ountries needs positi0e ,han#e in there
infrastru,ture system of the ,ountry to impro0e the o0era!! !o#isti, performan,e/
4'/'/ Lead Time To 06port:
Table ?o 4'/'/: >escriptive &tatistics: Lead Time 06port
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paper 1ork to faster eCport/ $ore do,uments pro,ess and outdated pro,edure in the port 1ou!d
in,rease the !ead time to eCport and redu,es the ratin# as 1e!!/ A,,ordin# to the abo0e tab!e
=amai,a performan,e is par be!o1 amon# the se!e,ted ,ountries as it takes days of eCport
somethin# in 6 and the situation more 1orse in 66 and it takes 4 days of eCport somethin#
1hi,h is not a,,eptab!e to in,rease the FD8 of the ,ountry and to bad to ,ompetin# in the 1or!d
!eadin# e,onomy ,ountries/
4'/'( )uality of Port !nfrastructure:
Table ?o 4'/'(: >escriptive &tatistics: )uality +f Port !nfrastructure > 4/> Q (@/63) (TS) RRRRR///////////////////////////////////%"uation 4
@ear /$/
-8 P 3/ Q (@/
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4.6Coefficients Analysis
The ,oeffi,ient ana!yses for a!! the mode!s are #i0en be!o1/
Coefficients
/$
Coefficient
/$/Comment
-ead Time %Cport @/9;63> @// 'n the other hand !ead time eCport has a ,oeffi,ient of @/
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/336
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Chapter # 5
Conclusion and
ecommendations
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5.Conclusion and ecommendations
5.Conclusion
As ar#ued in the pre0ious ,hapters that the key purpose of this 1ho!e resear,h is to boost and
de0e!op the o0era!! !o#isti, performan,e of the ,ountry by in0esti#ate the re!ationship of !o#isti,
performan,e 1ith other re!ated 0ariab!es to the !o#isti,s su,h as "ua!ity of port infrastru,ture2
road density2 transport ser0i,es and !ead time to eCport/ 'rdinary !east s"uare te,hni"ue has been
used in this study to ,onfirm the re!ationship bet1een !o#isti, performan,e and a!! the other
se!e,ted 0ariab!es/ A,,ordin# to the resu!ts "ua!ity of port infrastru,ture and road density has a
positi0e stron# re!ationship 1ith the !o#isti, performan,e 1hi!e transport ser0i,es has a s!i#ht!y
1eak re!ationship 1ith the !o#isti, performan,e 1here as !ead time to eCport has a s!i#ht!y 1eak
re!ationship and insi#nifi,ant re!ationship 1ith the !o#isti, performan,e in the fo!!o1in# year
66/So a!! these independent 0ariab!es are e"ua!!y important to boost and impro0e the any
,ountryGs !o#isti, performan,e/
5.2
ecommendations
After a robust ana!ysis of data from 0arious dimensions L perspe,ti0es2 fo,usin# on
beta ,oeffi,ients and positin# the hypothesis resu!ts2 fo!!o1in# are re,ommendation points of this
study based on resu!ts
t is re,ommended that the po!i,y maker shou!d fo,us on impro0in# the "ua!ity of port
infrastru,ture2 road infrastru,ture and po!i,y maker shou!d re0amp a!! the obso!ete
pro,ess of !o#isti,s so that the o0era!! !o#isti, performan,e shou!d impro0e and he!p to
#ro1 the ,ountryGs e,onomy/
urther it is re,ommended that the !o#isti, professiona!s ensure that the ,ontinuous
impro0ement is re"uired to attain the #oa!s and ,reate a si#nifi,ant impa,t on ,ountryGs
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e,onomy/
$oreo0er2 =amai,a2 8ara#uay and 8eru shou!d impro0e !o#isti,s ser0i,es of their
,ountries by impro0in# f!o1 of order pro,essin#2 impro0in# !ead time by de!i0ery order
on time2 e!iminate paper 1ork pro,ess and introdu,e ne1 te,hno!o#y/ Armenia2 +o!umbia and Serbia shou!d impro0e the "ua!ity of port infrastru,ture of their
,ountry by insta!!in# !atest ma,hinery at the port and or#anize the 0esse! s,hedu!e
proper!y/
As 1e seen in the abo0e des,ripti0e stats that ,ountries !ike Fermany and *ether!ands are
eC,eptiona!!y #ood in a!! their !o#isti,s pro,ess a,ti0ities !ike for instan,e Fermany
,onsidered the %urope top hub in !o#isti,s be,ause of their 1or!d ,!ass !o#isti,a!
infrastru,ture and thatIs 1hy a!! the bi# #iant firms ,hoose Fermany for their %uropean
head"uarters and as 1e!! as *ether!ands ,onsidered %uropeGs !ar#est port and fourth
bi##est port in 1or!d1ide and *ether!ands ust behind Fermany in terms of Eor!d bank
ratin# in,!ude ,ustom performan,e2 !o#isti, infrastru,ture and time!iness of ,onsi#nment/
So the po!i,y makers shou!d set these t1o ,ountries as a ben,hmark for makin# future
po!i,ies of their ,ountry/
5.3Future &tudies
As dis,ussed in the pre0ious ,hapters that the #rounds on 1hi,h ,ountries ha0e been
se!e,ted on their superior FD8 rankin# so it mi#ht be possib!e that the same study 1ou!d be
,ondu,ted on the !o1 FD8 ,ountries rankin# to ,he,k the impa,t of these 0ariab!es on the
-o#isti, performan,e/
$oreo0er in future time series or pane! re#ression te,hni"ue shou!d a!so be done by usin#
same 0ariab!es 1hi,h 1i!! he!pfu! to obser0e the trend and to fore,ast the study 0ariab!e/
urthermore2 in future "ua!itati0e resear,h shou!d a!so be ,ondu,ted for the same 0ariab!e to
predi,t the study 0ariab!e/
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%ibliography
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eferences
Alipour, H. R., Khorshidi, G. R., Naghdi, A., Alizadeh, H., Honarmand, H.,
&Shabani, Z. (!"#$. %he theor o' constraints a comparati)e
assessment. Far east journal of Psychology & Business,"#("$
Abe, K., & *ilson, +. S. (!!$. *eathering the storm in)esting in port
in'rastructure to lo-er trade costs in ast Asia. World Bank Policy Research
Working Paper Series, Vol.
Apte, /. 0., &1is-anathan, S. (!!$. Strategic and technological
inno)ations in suppl chain management. International journal of
manufacturing technology and management, (#$, 2345.
6ose, S. (!!#$. Road 7ensit, Resource 8ntensit and 9cienc in National
High-as o' 8ndia ":54";. !conomic and Political Weekly, :2"4:;".
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To Analyse What Factors Affecting Logistic Performance:
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Hausman, *.H., ?ee, ?.?. and Subramanian, /., !!:, EGlobal logistics
ser)ices, suppl chain metrics and bilateral trade patternsF, 0imeo,
*orld 6an, ctober.
Hibbs, +. (";!$ %ransport 'or =assengers. 8nstitute o' conomic A@airs
Hobart =aper No. #. Second edition, ";".
httpIIdata.-orldban.orgIindicator
httpsII---.-to.orgIenglishItratopJeIde)elJeIa3tJeIglobalJre)ie-"#progJeItr
ansportJandJlogistics.pd'.
+ansson, +an . (";$ 0arginal . (!!$. %he e@ects o' regulator re'orm on Bualit."ournal of the
"apanese and international economies, #3("$, "#:4"32.
Kleinbaum, 7. G., Kupper, ?. ?., & 0orgenstern, H. ("5$. !pidemiologic
research4 principles and 5uantitati.e methods. +ohn *ile & Sons.
0ustra, +. (!""$.
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Appendi6
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APP0?>!H
The ,ountries that are in,!uded in this study are se!e,ted on the basis of their hi#her FD8
rankin#s/ o!!o1in# be!o1 are the !ist of ,ountries that are in,!uded/
Country
@ea
r
@ear /$ P in
Trillion=
LP! T& )+P! >
LT
0
Gnited &tates
/$
4/99 3/>/>>
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6
Austria
/$
/4> 3/>9
34/ 3/
>enmark
/$
/334 3/>;
43/37
36/;;
9 3/4 7
Malaysia
/$
/6>> 3/44
34/46
;/7 43//37
;/4 >/3
Peru
/$
/77 6/94
3>/74
> 3/; 9/73 6/3
Lu6embourg
/$
/;9 3/>6
4/794
;/6 /6 /7
&ri Lanka
/$
/;9 6/7;
7 /73
&erbia
/$
/4< 6/>
67/4
; 6/7 ;/> 3
Paraguay
/$
/64 6/4>
>
.amaica
/$
/4 6/46
43/97
4 ;/3 6/6>
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?amibia
/$
/6 6/
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Countries @ear LP! T& )+P! > LT0
Armenia 66 6/;< 3>/69 3 69 ;/7 4/ 6
+hina 66 3/;6 3/44 4/4 46/77 3
+o!ombia 66 6/>7 33//7> 4
Denmark 66 4/6 36/; ;/> 7/;7 6
ran,e 66 3/>; 6 4Korea2 &ep/ 66 3/7 6>/;6 ;/; 6 ;/99 ;/; 6/> /;
$a!aysia 66 3/49 3/> ;/; 4 3
8ara#uay 66 6/4> /37 3/< 7/97 />
8eru 66 6/94 3>/;9 3/; /;
atar 66 3/36 4/3< ;/6 7>/ 67/;7 6/7 49/;6 /9
Sin#apore 66 4/3 69/7< 4>/;< 6
South Afri,a 66 3/7 6
nited Kin#dom 66 3/9 >/37 ;/> 76/67 3
nited States 66 3/93 6/6> ;/<
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To Analyse What Factors Affecting Logistic Performance:
A global upply !hain Perspecti"e;3
Table ?o 4'/'$: >escriptive &tatistics: Logistic Performance !nde6
7/24/2019 Zohaib Aziz Shaikh 9374 Final Thesis..
60/63
To Analyse What Factors Affecting Logistic Performance:
A global upply !hain Perspecti"e;4
Netherlands Netherlands
7enmar German
Borst
Serbia 6razil
Armenia Serbia
6razil Armenia
Table ?o 4'/'4: >escriptive &tatistics: oad >ensity escriptive &tats Bith espect To Pakistan
7/24/2019 Zohaib Aziz Shaikh 9374 Final Thesis..
61/63
To Analyse What Factors Affecting Logistic Performance:
A global upply !hain Perspecti"e;;
LP! LT0 LT! T& > )+P!
8akistan 6 6/>3 6/3 /;9 ;/6> 36/94 4/
8akistan 66 6/>3 3 ; 39/ 36/9> 4/4
/$ Pre2regression output 3 />66
+L& egression +utput
7/24/2019 Zohaib Aziz Shaikh 9374 Final Thesis..
62/63
To Analyse What Factors Affecting Logistic Performance:
A global upply !hain Perspecti"e;> @/
7/24/2019 Zohaib Aziz Shaikh 9374 Final Thesis..
63/63
To Analyse What Factors Affecting Logistic Performance:
A global upply !hain Perspecti"e;7
.ears 6 66
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t8rob ?a!ue
+oeffi,ien
t8rob ?a!ue
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+ 4/6> / 4/6;6 /
&@S"uare /3>64 /46>6
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@Statisti,s 7/33> 6/973
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