Understanding the LPI in your logistics environment.
The “age of the customer” affords third party logistics service providers with exceptional growth opportunities in a vastly competitive logistics environment to meet increased customer expectations (Blake Shumate, 2017). A common goal amongst service providers, customs, port authorities etc. is to be able to customise supply chain solutions in an ever-evolving world of logistics and the many facets it has to offer.
As Global Logistics Alliance (GLA), we recognise this coming of age era and pride ourselves in exploring new avenues within this environment to best align ourselves with inevitable change and identifying alliance prospects with our clients and their suppliers.
Much like the World Bank’s Logistics Performance Index (LPI) which is set to measure different countries performance on trade logistics, we as GLA and our customers are reverting inwards and analysing our benchmarking tools to identify competitiveness and realize growth on all levels.
The LPI focuses on qualitative and quantitative data to determine the logistics friendliness of 160 countries by comparing their performances based on operational efficiency and openness to trade (The World Bank, 2018).
As per Figure 1.1, South Africa’s LPI rankings varied over the past 11 years. The goal is to ensure an improved ranking with increased returns, therefore shifting the focus from a variable to a constant for all stakeholders.
Figure 1.1 Country Score Card: South Africa (The World Bank, 2018)
By examining the LPI results for South Africa over the years, which is formed based on international measurable elements, we can study the correlations amongst these components with that of our own. The tailored components entail the below:
- Effective customs and border clearances.
- Quality of infrastructure, human resources and demand-based assets.
- Operable cost structures for shipments.
- Resourceful added value services.
- Visibility of consignments’ movement.
- Scheduled punctuality from planning to execution.
Executing the methodology of the LPI along with business practices warrant economies of scale for GLA and our respective clients, therefore guaranteeing continued average growth and secured key alliances.
Does your logistics service provider add value to your company’s unique demand structure? Contact us today, to measure your on-the-ground efficiency of trading solutions.
By Carmen R. Scheepers – 08 November 2018