Wednesday, November 07, 2007

Singapore ranks #1 in Logistics Performance Index

World Bank has released the first Logistics Performance Index (LPI) report, which includes benchmarks of 150 countries. The tool is based on large survey data and includes both quantitative and qualitative indicators. The tool is designed by the World Bank International Trade and Transport Departments in cooperation with Prof. Lauri Ojala’s team at Turku School of Economics in Finland (TSE, Finland).

The report is available for free downloads: Arvis Jean-Fran├žois , Monica Alina Mustra, John Panzer, Lauri Ojala, Tapio Naula (2007). Connecting to compete - Trade Logistics in the Global Economy - The Logistics Performance Index and Its Indicators.

The LPI tool describes logistics “friendliness” of countries including the following aspects:

  • Perceptions of the logistics environment of trading partner countries
  • Efficiency and effectiveness of Customs and other border procedures,
  • Quality of Transport and IT infrastructure for logistics;
  • Ease and affordability of arranging shipments;
  • Competence in the local logistics industry (e.g., transport operators, customs brokers);
  • Ability to track and trace shipments;
  • Domestic logistics costs (e.g., local transportation, terminal handling, warehousing); and
  • Timeliness of shipments in reaching destination.

According to these measures, Singapore ranks number one in LPI, followed by #2 the Netherlands, #3 Germany, #4 Sweden, #5 Austria, #6 Japan, #7 Switzerland, #8 Hong Kong, #9 UK, and #10 Canada. Interestingly, US is ranked #15, China #30, India #39, and Russia # 99. The future will show if this ranking will be as famous as the Global Competitiveness Report is a yearly report published by the World Economic Forum. The inaugural LPI report is very promising and one can wish good success on this. The decision makers of logistics really need benchmark tools like this.

BR, Petri

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