Logistics forms the backbone of domestic and international trade in any economy and is a critical factor for competitiveness. Besides providing employment and movement of goods, an efficient logistical network enables increases in the speed of doing business. A pertinent question is how does one measure the logistics performance of a country and compare it with that of other economies? A recent biannual report of the World Bank throws light on this. However, it must be noted that the performance on Logistics Performance Index (LPI) is a measure of performance on international supply chains and does not capture the reality within a domestic setting.
The international LPI is based on an assessment of performance along six key indicators — some on the input side and the others on the outcome side of the supply chain service delivery. These pertain to border control agencies, infrastructure and services quality on the input side. On the outcome side are competitively-priced international shipments, tracking and tracing and timeliness.