processes is strongly related to the clearance processes by border control agencies, including customs. Complex and inefficient customs clearance processes create serious bottlenecks.
Profitability:
This indicator shows the efficiency of performance on company or sector level. To monitor the profitability performance of logistics companies is to look on the profit margins per company or per sector.
Effectiveness:
Value added of logistics:
The indicator represents the contribution of the logistics sector to national economy. The benchmark and analyses of the indicator between countries and over time shows the interdependences between logistics activities and economic development. It measures the economic performance and effectiveness of the sector at national level.
Logistics sector turnover:
The indicator is closely related to the indicator “value added of logistics” but incorporates additionally the intermediate consumption of the sector and is suitable to benchmark and monitor development per country over time.
Reliability of service:
The indicator intends to show an overall reliability of the operation and service performance on company level, including:
- Variation in transit times: Indicates the reliability of the transportation function;
- Accuracy of order fulfilment (i.e., error-free orders): Indicates the reliability of complete shipments;
- Punctuality (on-time provision of logistics services): Assesses the number of cases the logistics service fulfilled on time.
Quality management
The indicator intends to evaluate the overall quality management performance of services on company level in terms of:
- Service visibility / traceability through the supply chain: The availability and accuracy of tracking and tracing system of the supply chain internally and for the customer enables monitoring the status of the service.
- Quality systems: The presence of certifications resp. quality assurance systems certifies a company to a higher extend of quality and is therefore more attractive.
- Information flow: The indicator should assess how good the communication is between LSP and customers. It may concern general communication as well as electronic data interchange.
- Customer satisfaction The indicator assesses the percentage of complaints of the logistics service.
Flexibility
The indicator intends to evaluate the capacity of flexibility in offering and fulfilling logistics services on company level:
1. Ability to adapt changes in demand and capacity: How flexible are offered logistics services regarding variation of volumes, capacity, size and special requirements;