Question

The World Bank’s Logistics Performance Index (LPI) assesses the trade logistics environment and performance of countries. Locate the most recent LPI ranking. What components for each country are examined to construct the index? Identify the top 10 logistics performers. Prepare an executive summary highlighting the key finding from the LPI. How are these findings helpful for companies trying to build a competitive supply chain network?

Answer 1

Logistic Performance Indictor 2018 by World Bank

The following six components are used by World Bank in analyzing LPI

1. The efficiency of customs and border management clearance.

2. The quality of trade- and transport-related infrastructure.

3. The ease of arranging competitively priced international shipments.

4. The competence and quality of logistics services.

5. The ability to track and trace consignments.

6. The frequency with which shipments reach consignees within the scheduled or expected delivery time

Top 10 Logistic performers are

1- Germany

2- Sweden

3-Belgium

4-Austria

5-Japan

6-Netherlands

7-Singapore

8-Denmark

9- United Kingdom

10-Finland

LPI index helps companies in building their supply chain network in the operating countries where they operate. The companies closely watch the findings of World bank which is most reliable source in mapping logistic performance of an economy. By digging details into the report, they can decide how they will overhaul their supply chain and make a strategy through which the company can achieve optimum supply chain management so that it will be smoothen and ease in flow of components in supply chain. It can also be used as ready reckoner for the companies to know where they should source their supply and to obtain optimum position by carefully analyzing any bottlenecks they will encounter while using logistic of the country.