First off, what is the World Bank’s logistics Performance Index? Abbreviated as LPI, it is a benchmarking tool that was created in the hopes of helping countries identify the different opportunities and challenges with concern to the performance of trade logistics. The Logistics Performance Index also assists with ways in which to improve performance too. The most recent World Bank Logistics Performance Index data set was set in the year 2018, which compared the data from 160 countries. The Logistics performance index is a global survey global freight forwarders and express carriers, which entails offering feedback on the friendliness of other countries in which they operate in and with whom they trade.
The World Bank puts together in-depth knowledge of these countries in which the ground operators operate in via the use of informed qualitative assessments of the other countries in which trade occurs. Furthermore, they also assess the global logistics environment. The feedback will be further supplemented with quantitative data on the performance based on the countries logistics chain based on various key components.
The logistics performance index factors quantitative and qualitative data to measure and build profiles on each country in terms of friendliness of logistics operability. As mentioned before, it also factors the performance of supply chain operations within the country and look at it from a domestic and international perspective. These indices are known as International Logistics Performance Index (International LPI) and Domestic Logistics Performance Index (Domestic LPI).
International Logistics Performance Index
The International LPI provides qualitative data and assessments of the country by six of its trading partners, that is, logistics professional working outside of the respective country.
Domestic Logistics Performance Index
The Domestic LPI provides both quantitative and qualitative data along with assessments of the country by logistics professional working inside of the respective country. Furthermore, it includes in-depth information with regards to the logistics environment, core logistics processes, institutions and performance and time data as well.
Find the Full Report for the 2018 World Bank’s Logistics Performance Index here.