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Benchmarking Logistics - Logistics Performance Indicators By Ziad Nakat , Phd . Transport Specialist The World Bank June 12, 2013 Amman. Semantic. Logistics = art of organizing physical movement of goods or supply chains Logistics performance = national level concept - PowerPoint PPT Presentation
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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