Competitiveness based logistics performance index: An empirical analysis in Organisation for Economic Co-operation and Development countries

Abstract

Logistics, beyond being a strategically important function for global supply chains, is a sector of considerable size in terms of the global economy. Thus, economy-wide logistics capabilities have a strategic impact at the national level, supporting countries to achieve a global competitive advantage. For this reason, the logistics performances of the countries not only show the success of using their existing logistics capabilities but also provide significant indications about their competitiveness at the global level. Due to this strategic impact, this study aims to deal with the logistics performances of OECD countries from the perspective of competitiveness and to determine the competitiveness-based logistics performance index (CB-LPI). For this purpose, data envelopment analysis has been applied with two different techniques. The input variables are the Global Competitiveness Index, and the output variables are the Logistic Performance Index. In this empirical study, 7 inputs (infrastructure, skills, product market, financial system, information and communication technology adoption, business dynamism, innovation capability) and 6 output variables (Customs, Infrastructure, International shipments, Logistics quality and competence, Tracking and tracing, Timeliness) have been used. This study is handled in a total of 5 periods. These periods are 2010, 2012, 2014, 2016 and 2018. As a result, it was determined that the competitive logistics performances of 8 countries (Australia, Germany, Italy, Mexico, Poland, Portugal, Spain, and Turkey) were at the level of full efficiency in each period in the application of both techniques. In addition, the CB-LPI covering all OECD countries has been established. Based on the scores obtained, country-based suggestions for countries have been developed.