1. Benchmarking Logistics - Logistics Performance Indicators By Ziad Nakat, Phd. Transport Specialist The World Bank June 12, 2013 Amman

2. Semantic  Logistics = art of organizing physical movement of goods or supply chains  Logistics performance = national level concept  Trade and Transport Facilitation = set of measures and investment to improve logistics performance

3. Logistics Performance  How do you connect to international logistics networks?  How easy it is for traders to use international networks?  Logistics Performance is very much Endogenous: = procedures, services, business practices, to clear goods and move them inland.

4. Logistics Performance and Growth  Aggregating individual supply chain logistics expenses at the national level. (=8 to 30% of GDP)  Productivity and Competitiveness  Sustainable growth  Poverty reduction (20 to 60% of food cost)  An array of policy interventions:  Infrastructure and planning  Customs Trade facilitation  Regulation of services

5. Economic distance to markets Goods prices Cost Structure Profit, occasional payments, informal etc. Packing, palletizing, labeling Handling costs Administration costs, documentation, procedures etc Logistical cost Inventory (incl. warehouse) Direct costs

6. The Logistics Performance Index Measures the overall trade logistics efficiency of 150+ countries 2007 2010 2012 >>2014 www.worldbank.org/lpi

7. Source of data is suppliers of logistics services (freight forwarders, express carriers), FIATA sponsored Rates logistics performance on a scale of 1 to 5 6 components One overall LPI The Logistics Performance Index

8. Availability of International Shipments Customs & Border procedures Timeliness Tracking and Tracing Transport &Telecom Infrastructure Services Quality Supply Chain Service Delivery Service Delivery performance outcomes Service Delivery performance outcomes Areas for policy regulations (inputs) Areas for policy regulations (inputs) Time, cost, reliability Time, Cost & Reliability measured in the LPI

9. LPI 2010 – performance varies around the world Countries are improving around the world No data Logistics friendly Logistics unfriendly Partial performers Consistent performers 9

10. LPI & income.

11. Good news, everyone doing better

12. Top 10 and bottom 10 performers

13. Top high & low middle income countries performers

14. LPI scores, per component and quintile

15. Going Forward  Improving infrastructure  More ICT solutions  Improving logistics services in developing countries (better regulation, competition)  Coordinating border management  Regional facilitation and integration  National data for reforms (logistics observatory?)  Green growth and logistics

16. Trade Logistics Reform Matrix

17. THANK YOU