Benchmarking Logistics - Logistics Performance Indicators

By Ziad Nakat, Phd.Transport Specialist

The World Bank

June 12, 2013Amman

Semantic

Logistics = art of organizing physical movement of goods or supply chains

Logistics performance = national level concept

Trade and Transport Facilitation = set of measures and investment to improve logistics performance

Logistics Performance

How do you connect to international logistics networks?

How easy it is for traders to use international networks?

Logistics Performance is very much Endogenous:

= procedures, services, business practices, to clear goods and move them inland.

Logistics Performance and Growth Aggregating individual supply chain logistics

expenses at the national level. (=8 to 30% of GDP) Productivity and Competitiveness Sustainable growth Poverty reduction (20 to 60% of food cost) An array of policy interventions:

Infrastructure and planning Customs Trade facilitation Regulation of services

Econ

omic

dis

tanc

e to

mar

kets

Goo

ds p

rices

Cost Structure

Profit, occasional payments, informal

etc.

Packing, palletizing, labeling

Handling costs

Administration costs, documentation, procedures etc

Logistical cost

Inventory (incl. warehouse)

Direct costs

The Logistics Performance Index

Measures the overall trade logistics efficiencyof 150+ countries 2007 2010 2012>>2014www.worldbank.org/lpi

• Source of data is suppliers of logistics services (freight forwarders, express carriers), FIATA sponsored

• Rates logistics performance on a scale of 1 to 5

• 6 components

• One overall LPI

The Logistics Performance Index

Availability of International Shipments

Customs & Borderprocedures

Timeliness

Tracking and Tracing

Transport &TelecomInfrastructure

Services Quality

SupplyChain Service

Delivery

Service Deliveryperformance outcomesAreas for

policy regulations (inputs) Time, cost, reliability

Time, Cost & Reliability measured in the LPI

LPI 2010 – performance varies around the world

Countries are improving around the worldNo dataLogistics friendly

Logistics unfriendlyPartial performersConsistent performers

9

LPI & income.

Good news, everyone doing better

Top 10 and bottom 10 performers

Top high & low middle income countries performers

LPI scores, per component and quintile

Going Forward

Improving infrastructure More ICT solutionsImproving logistics services in developing

countries (better regulation, competition)Coordinating border management Regional facilitation and integrationNational data for reforms (logistics

observatory?) Green growth and logistics

Trade Logistics Reform Matrix

THANK YOU