Transport Logistics

CHAPTER VI: EVALUATION OF LOGISTICS SYSTEMS – INDICATORS

6.1. The aim of developing logistics performance indicators

The aim of developing performance indicators for the logistics sector is to evaluate the efficiency

and sustainability of logistics systems, monitor the achievement of logistics policies and explore

possible improvements.

Different players in the logistics chain have different objectives, and achievement of each of

these objectives needs to be evaluated. The private sector aims to achieve optimisation of the supply

chain, and hence, be competitive in international markets. The public sector aims to fulfil its

responsibility by applying effective policies to address the trend towards increased globalisation of

economies and liberalisation of trade while achieving sustainability and social objectives. The public

sector has to be able to monitor freight transportation and the performance of logistics systems to

measure the effectiveness of its policies.

Therefore, it is necessary to assess the advancement of logistics not only from the viewpoint of

industrial or national competitiveness, but also from the viewpoint of global, social “optimisation”.

Performance indicators can be used to assess impacts of logistics by considering the major players in

the logistics system, i.e. consumers, shippers, logistic service providers and governments.

Although a complete evaluation of logistics systems may be difficult, a relative evaluation is

possible and useful by comparing the performances of logistics services in different countries using

performance indicators. They can be evaluated by considering best practices as the standard evaluation

criteria.