Logistics performance and policy: what is out there?

Transcription

1 Conference New Trends in Trade Facilitation International Trade Department, PRMTR Washington DC, June 16, 2011 Logistics performance and policy: what is out there? Professor Lauri Ojala Turku School of Economics at the University of Turku, Finland

2 What is logistics performance for firms? Logistics performance refers to the level of efficiency and effectiveness of logistics operations Key trade-off between service level and costs Key Logistics Performance Indicators (KPIs) such as Efficiency: e.g. delivery accuracy & customer service level Effectiveness: e.g. cycle times of inventories & cash-to-cash Costs: e.g. logistics costs per delivery, product or business The practice of using KPIs varies a lot between firms

3 But few coherent performance indicators exist on country level World Bank LPI: a robust indicator on how easy or difficult a country s trade logistics operations are Border management and port efficiency indicators Good vertical measures, do not capture horizontal supply chains Industry surveys useful when comparing countries Time-series valuable as with border management & port data Logistics cost measurement and comparisons difficult

4 Logistics costs no statistical nor accounting units Definitions vary from case to case Large differences in awarness levels across countries Firm and macro level data not compatible Linkage to National Accounts data only implicit Self-reported data often subjective or biased In short: severe knowledge gaps exist especially on the concept of logistics costs Prof. Ojala, World Bank, June 16,

5 A wide spread of methods, units and definitions on e.g. logistics cost in available studies Logistics costs as % of: (i) GDP *; (ii) Sales **; (iii) Total costs *** Tajikistan 2005* Moldova 2005* Ukraine 2007* Finland ** ELA/ AT. Kearney** U.S. State of Logistics* Sweden* State of logistics South Africa* BVL Germany; Manufacturing*** China; Choi & Lee (2009) * Brazil = ILOS (2010) * LPIO Bangkok, May 12, 2011, Ojala & Lorentz 5

6 Statistics-based logistics studies do exist: Annual State of Logistics Report U.S 1989 Bowersox, Rodrigues, Calantone & Closs, Stank 1999, -02,-05 South Africa State of Logistics Survey 2003 Logistics costs in Brazil 2005 Top 100 in (European) Logistics 2007 Norwegian logistics costs 2008 Svensk Makrologistik (Sweden) 2008 Radelet and Sachs 1998 Lee & Hausmann (World Bank background note) 2005 Prof. Ojala, World Bank, June 16,

7 as do surveys using questionnaires, such as: ELA & A.T. Kearney 1987 Finland State of Logistics 1991 German Logistics Association BVL 1995 State of Logistics: The Canadian Report 200X Norwegian Logistics barometer 2003 ASLOG L'Etat de l'art de la logistique française 2005/2006 McKinsey Global Supply Chains 2006 & 2008 LogOn Baltic Logistics Survey 2007 World Bank Logistics Performance Index 2007 Colombian logistics survey 2008 Swiss Logistics market, St. Gallen University 2009 Prof. Ojala, World Bank, June 16,

8 Existing studies e.g. by the following Brazil: ILOS Transport Canada Fraunhofer Institute, Germany Technical University of Berlin University of Lund, Sweden South Africa: CSIR & Stellenbosch University Japan Institute of Logistics Systems Delcan Corp. for CSCMP, USA ASLOG France The Institute of Transport Economics Norway St. Gallen University Switzerland Ministry of Transport, New Zealand Latin America: Georgia Tech & LALC Thammasat University Thailand Turku School of Economics, Finland Prof. Ojala, World Bank, June 16,

9 Knowledge gaps on logistics performance indicators & costs Lack of comparable methods & terminology Very few cross-country studies made even in HICs Little comparative data across countries & industries Fact-based, comparative policy recommendations difficult to make especially in LICs and MICs Prof. Ojala, World Bank, June 16,

10 Need to improve Logistics Cost & Performance analysis to support policy making Collecting the existing knowledge mainly in HIC s Using more uniform terminology & methodology Analytic tools for Middle & Low Income countries Questionnaire-based surveys Statistics-based studies Modelling approaches Other approaches, e.g. Logistics Perfomance Index (LPI) Finding comparable interpretations for logistics costs & KPI s F K o C Prof. Ojala, World Bank, June 16,

11 In conclusion, there is strong interest for exchange of knowledge among researchers in the field; need for improved market information; and demand for better analysis to support policymaking especially in LICs and MICs. A need to create a joint knowledge platform to study national level logistics performance Prof. Ojala, World Bank, June 16,

12 Thank you for your attention! Prof. Ojala, World Bank, June 16,