The importance of efficient logistics is now widely accepted by policymakers worldwide. Trade and commerce are moved within and across borders by private operators. The efficiency of those supply chain -logistics performance- is what the Logistics Performance Index (LPI) and its components measure. This performance depends heavily on the policy environment: measured by individual countries or regional economic groups in infrastructure provision, regulation and development of services, or facilitation of trade through more friendly procedures at the border contribute substantially to logistics performance (WTO 2014). The LPI survey was carried out through
The World Bank’s
partnership with the International Association of Freight Forwarders (FIATA), the Global Express Association (GEA), AND THE Global Facilitation Partnership for Transportation and Trade (GFP) (The World Bank 2002). The Logistics Performance Index (LPI) analyzes countries in six components:
The efficiency of customs and border management clearance.
The quality of trade and transport infrastructure The ease of arranging competitively priced shipments.
The competence and quality of logistics services.
The ability to track and trace consignments.
The frequency with which shipments reach consignees within schedule or expected delivery times.
International LPI based on the assessment of foreign operators located in the country’s
major partners, and weighs the average of the six components above The components were chosen based on recent theoretical and empirical research and on the practical experience of logistics professionals involved in international freight forwarding (WTO 2012). LPI survey has been made 4 times so far, in 2007, 2010, 2012 and 2014. Based on a worldwide survey of global freight forwarders and express carriers, the LPI is a benchmarking tool developed by the World Bank that measures performance along the logistics supply chain within a country. Allowing for comparisons across 160 countries, the index can help countries identify challenges and opportunities and improve their logistics performance (WTO 2014). The index ranges from 1 to 5, with a higher score representing beter performance