6.3. Recommendations for developing new indicators
i) Need to develop multi-criteria indicators to enable comprehensive evaluation
Performance indicators can be classified into two types, cost indicators and quality indicators. In
the private sector, there is a need to assess the performance of logistics systems in the consumer goods
market not only from the cost aspect but also from more comprehensive aspects including consumer
service, quality and safety of goods.
Furthermore, when assessing overall performance, non-monetary costs such as socio-economic
costs (including environmental costs) should be considered. These are often neglected by the private
sector. Society as a whole, however, shoulders these costs, thereby reducing the total efficiency of the
system.
By combining these cost and quality indicators or by aggregating them into regional or national
average values, a more comprehensive evaluation covering total logistics costs, quality of logistics
services and impact on socio-economic factors can be performed.
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