Connecting to Compete 2014 : Trade Logistics in the Global Economy--The Logistics Performance Index and Its Indicators

Abstract

This is the fourth edition of Connecting to Compete: Trade Logistics in the Global Economy. It features the Logistics Performance Index (LPI), which the World Bank has produced every two years since 2007. The LPI measures the on-theground efficiency of trade supply chains, or logistics performance. This year's edition covers 160 countries. Supply chains are the backbone of international trade and commerce. Their logistics encompasses freight transportation, warehousing, border clearance, payment systems, and increasingly many other functions outsourced by producers and merchants to dedicated service providers. The importance of good logistics performance for economic growth, diversification, and poverty reduction is now firmly established. Although logistics is performed mainly by private operators, it has become a public policy concern of national governments and regional and international organizations. Supply chains are a complex sequence of coordinated activities. The performance of the whole depends on such government interventions as infrastructure, logistics services provision, and cross-border trade facilitation. Since the first edition, the LPI has shown that good policies matter to develop efficient supply chains but also that many developing countries still lag behind. The "logistics gap" evident in the first three editions still prevails and underscores the importance of consistent policies across sectors (trade, customs, and transportation, for instance). The agenda and priorities are evolving. The imperative of facilitating trade through more transparent and consistent border clearance is now universally recognized-and set in stone in December 2013's World Trade Organization Agreement on Trade Facilitation in Bali, Indonesia. New challenges of environmental sustainability, spatial planning, and the regulation and organization of services are receiving more attention, and not only in rich and emerging countries. The LPI and its components help countries understand the challenges that they and their trading partners face in making their national logistics perform strongly. The LPI complements, rather than substitutes for, the in-depth country assessments that many countries have undertaken in recent years, and many of them with World Bank support. The LPI scores are not to be overemphasized, however-a country's actual ranking or score should not be interpreted in isolation, but instead whether it ranks among the best or worst performers. The LPI allows leaders in government, business, and civil society to better assess the competitive advantage created by good logistics and to understand the relative importance of different interventions. We hope that this fourth edition of Connecting to Compete will continue to support this broad community of policymakers and stakeholders.

The changing strategic roles for warehousing in an emerging economy: case study in Ukraine

“…In 2006, when data were collected for this research project, infrastructure scored 2.35 and ranked 74th, which was at a level commensurate to Ukraine's logistics performance index, then ranking 73rd (Arvis et al, 2007).…”

“…The World Bank (Arvis et al, 2010) has published a report on the logistics performance index and its indicators, proposing a comprehensive approach to supply chain performance. The index is based on six areas of performance: customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, timeliness.…”

Critical points of defining and realizing Serbian transport policy

“…The vision of transport policy of Serbia is that of an unavoidable corridor connecting East and West, North and South, measured by the volume of transport, length of transport network, the value of investments, the share of transport in gross domestic product, as well as the degree of the increase in living standard. The geographical position of Serbia is its competitive advantage, as it is located at the crossroads of the Balkans and important corridors 10 and 7, as well as 4 (Danube-Rhine) 2 crisscross it.…”

“…The Logistic Performance Index [2] shows the efficiency of the logistics system at the international level and ranks countries according to the criteria of efficiency of customs and non-customs procedures, the quality of trade and transport infrastructure, the efficiency of the organization of delivery at competitive prices, capacity and quality of logistics services (freight transport, freight Table 3). …”

Logistics Strategy and Performance Measurement

“…The logistics performance indicator (LPI) developed for the World Bank (Arvis et al 2014) relies entirely on surveys of perceptions by shippers to rank performance of each countries logistics sectors in relation to trade facilitation, taking all modes of transport together. The indicator, and more broadly the report Connecting to Compete: Trade Logistics in the Global Economy: The Logistics Performance Index and its Indicators published four times since 2007 by the World Bank, has proved a highly effective tool for raising awareness of the importance of logistics performance to international competitiveness.…”