LPIBased Two Stage Network DEAModel to Measure Logistics Efficiency: An Application on OECDCountries

Abstract

Measuring logistics efficiency is important to understand the strengths and weaknesses of a country's logistics operations and to be able to do necessary improvements. A common practice in the literature is applying Data Envelopment Analysis (DEA) with World Bank's logistics performance index (LPI) values for measuring logistics efficiency of countries. While DEA is a powerful methodology for relative efficiency measurement, a more sophisticated branch of DEA models is Network DEA (NDEA), especially for processes with inner sub-processes. The purpose of this study is to present a novel NDEA model for measuring logistics efficiencies and sub-efficiencies of countries.Design/methodology/approach -This study presents a relational two-stage network data envelopment analysis model to measure relative efficiency of a country's logistics process. For the first time in literature, total logistics process of a country is divided into two sub-processes as production and service stages.Findings -Proposed Network DEA model utilizes international LPI scores and macroeconomic indicators to measure OECD countries' logistics efficiencies for bi-yearly periods between 2010 and 2018. Obtained results favors 3 countries out of 37 with high logistics efficiencies. Also, by grouping the countries in terms of development level, results show that although developed countries have better logistics outputs in terms of LPI index, most logistically efficient countries are developing economies in general.Discussion -This study with proposed NDEA model is open for further research and development. The model could be varied with different capital and labor measures, also could be improved by adding some domestic LPI or other logistics indicators.

Competitiveness based logistics performance index: An empirical analysis in Organisation for Economic Co-operation and Development countries

“…The most important factors reducing the level of efficiency are "timeless" and "International shipments" logistics activities. Erturan and Merdivenci (2021) point out that Belgium is among the five most efficient countries in terms of logistics efficiency in 2010-2012-2014-2016-2018. Thus, it is supported that Belgium's high CB-LPI score is not a coincidence.…”

Network DEA and Its Applications (2017–2022): A Systematic Literature Review

“…The papers in [104][105][106][107] model the efficiency of airlines and airports; the studies in [108,109] are devoted to the efficiency of different manufacturing companies. The papers in [110][111][112] analyze logistic companies and systems. The papers in [113][114][115] investigate the efficiency of different health care systems in struggling with the COVID pandemic.…”

Sustainable Development in GCC (Do Logistics Indicators Matter?)

“…Additionally, the tracking and tracing concept refers to the ability a country has in terms of tracking and tracing (Karaduman, Karaman-Akgül, Çağlar & Akbaş, 2020;ITF, 2015), while timeliness measures a country's ability to meet delivery times (International Transport Forum, 2015;Karaduman, Karaman-Akgül, Çağlar & Akbaş, 2020;Martí, Puertas & García, 2014). These factors represent two main categories: the first category refers to policy regulation areas (customs, infrastructure, and logistics quality and competencies), while the second category reflects Delivery Performance Results (timeline, international shipments, and tracking and tracing) (Aboul-Dahab, 2020; das Chagas, de Moura, de Oliveira, de Macedo Ferreira & Akabane, 2018; Erturan & Merdivenci, 2021;Su & Ke, 2017 ).…”