However, the available indicators are very general. National and regional policy
making, which design and institute logistics initiatives and reforms, need a more
specific data set that details the performance of logistics according to flow of trade (export or import) per sector, and volume and value of shipments, among others. In this
way, governments will be able to capture the impact of timeliness, cost-effectiveness,
and supply chain reliability in each sector and, in response, be able to design
appropriate logistics initiatives and reforms.
Challenge 2: scope of commercially meaningful comprehensive coverage of logistics
As discussed in Section 2, the boundaries of logistics are ambiguous. Domestic and
international industry classifications do not have an independent category dedicated to
logistics. Trade in services statistics include the category of transportation services,
but not logistics services. The W/120 classification, which is also used for services trade
negotiations, has no independent category for logistics services. Logistics is embedded
in cross-cutting items, ranging from transport to communications (e.g. courier services),
which are sub-sectors of certain categories. Moreover, it should be noted that services
provided by governments, such as customs, are also an important component of
logistics. It is this cross-cutting nature of logistics that makes logistics critically
important. Serious inefficiencies in one aspect of logistics may result in a malfunction of
the entire supply chain. Therefore, in order to meet business needs and smoothen
transactions, it is vital that reforms in logistics services comprehensively take into
account the actual flow of goods, mapping specific sub-sectors involved in the chain of
transactions.