Logistics Performance Measurement

Logistics costs and performance are key components of seamless supply chains. Indeed, the term supply chain management is increasingly used together with logistics.

Understanding logistics performance at the country level is important to better evaluate and target Trade and Transport Facilitation policy efforts over time and across countries. Lower costs for logistics reduce the cost of delivering products; thereby encouraging sales, increasing trade, opening new markets, and generally encouraging business. Performance evaluation also helps to improve the efficiency of supply chains and the functioning of related infrastructures, services, procedures and regulation as well as measuring the size of logistics markets.

A sound and comprehensive set of national level performance indicators is critical for high level policy dialogue, preparation and implementation. Policymakers need to understand better, for example:

• How high are logistics costs in absolute and relative (to others) terms;
• What are the main drivers of logistics costs (supply side, regulation, infrastructure, connectivity...);
• How costs and lack of logistics performance affect sectors in the economy;
• How performance measures can help in the development and pursuit of an efficiency and reliability agenda.

The session will review the most recent research on logistics costs and performance around the world. Results include findings from recent studies, such as the World Bank Logistics Performance Index and the “TOP 100 in European Transport and Logistics Services” as well as Transport Canada’s Fluidity Indicator illustrating the benefits of supply chain performance monitoring. The results highlight key areas for improvement in order to achieve more efficient and seamless supply chains.

Session speakers

• Jean-François Arvis, Senior Economist, World Bank: “Logistics Performance Index and Its Indicators 2012”
   
• Lauri Ojala, Professor, Turku School of Economics, Finland: “Overview of National Level Logistics Studies on Logistics Costs and Performance”
   
• Peter Klaus, Professor Emeritus, Friedrich-Alexander Universität Erlangen-Nürnberg:  “Measuring the Size of Logistics Markets and Logistics Costs: Findings form the 2011/2012 European "TOP 100" study"
   
• Richard Thivierge, Director General, Transport Canada: "The Fluidity Project: Measuring Container Flows in Canada"