Abstract

This paper examines the issue of measuring logistics costs from an applied trade policy research perspective, as well as identifying logistics-intensive sectors. It focuses on currently available data at the macro-and firm-levels. This paper has two main aims. First, it provides a first overview of currently available data relevant to logistics, and suggests some preliminary applications. The second objective of this paper is to frame the issue of logistics cost measurement and data collection in terms of the types of inputs needed for applied trade policy research. The paper is organized as follows. The next section presents an overview of possible directions in applied trade policy research using logistics data. Section three examines existing data sources that can be used to measure domestic logistics costs, focusing on the national accounts, input-output tables, price comparisons, and firm-level data. Section four presents a new methodology for measuring international trade costs, and identifies the proportion of those costs due to logistics. Section five uses input-output data to identify logistics-intensive sectors in a range of countries. Section six concludes. This paper has explored a number of different data sources and methodologies in an effort to move forward on the analysis of logistics costs from a trade policy research perspective. In the future, it will be important to distinguish between data collection efforts that are industry-driven-such as estimates of total logistics costs in Gross Domestic Product (GDP)-and those that are research-driven. Moving further in this direction will help fuel research that identifies sectors in particular countries that are most sensitive to improvements in logistics performance, and which therefore will tend to expand relative to other sectors in the face of logistics sector reforms. From a policy and political economy point of view, it will be important to identify such sectors and make them aware of the potential role logistics can play in facilitating their growth. Document type: Book

Abstract

Regulatory frameworks on logistics regulations are often opaque, especially in developing countries, because of the complex nature of logistics services. World Bank client countries have faced difficulty finding the issues that hinder them from improving logistics competence. Therefore, it is beneficial to understand how the logistics service industry is regulated and what should be addressed in building the regulatory framework to improve logistics competence. This note proposes questions to be addressed for beneficial regulations by reviewing existing logistics service regulations in 14 countries, particularly regulations for the freight forwarding industry. These questions will help in assessing a regulatory framework and identifying regulatory weaknesses. This note suggests that the regulatory framework should take into consideration national recognition of freight forwarding business, an institutional arrangement with clear division of responsibility among stakeholders, and streamlined but flexible regulations adapted to the country context. Document type: Book

Abstract

This is the first report presenting the Logistics Performance Index (LPI) and indicators. It aims to shed light on how different countries are doing in the area of trade logistics, and what they can do to improve their performance. It is based on a worldwide survey of the global freight forwarders and express carriers who are the most active in international trade. LPI and its underlying indicators constitute a unique dataset to measure country performance across several dimensions of logistics and to benchmark that logistics performance against 150 countries. It provides the empirical basis to understand and compare differences in trade logistics as well as to inform policy with respect to difficult bottlenecks and tradeoffs. As a tool for policymakers, professionals, development agencies, and other stakeholders, it will directly support the fast-growing agenda for reforms and investments in trade and transport facilitation. The report provides some insights on the cost of poor logistics to country competitiveness and the sources of those higher costs. Beyond cost and time taken to deliver goods, the predictability and reliability of supply chains is increasingly important in a world of just-in-time production sharing. Costs related to hedging against uncertainty are significant. Equally, cost and quality of logistics are determined not just by infrastructure and the performance of public agencies, but also by the availability of quality and competitive private services. Moreover, in many developing countries, problems of adverse geography are compounded by a weak modern services sector due to poor institutions or over-regulation. The report closes with some practical insights, advocating a comprehensive, integrated approach to ensure that actions in one area are not rendered ineffective by bottlenecks in another.

Abstract

"jats:p" The main goal of our research is to analyze and display causes of a bullwhip effect formation within a supply chain, as well as to provide the appropriate solutions to limit the occurrence of the bullwhip effect by using the proper information flow and partners’ cooperation within the supply chain. The bullwhip effect is one of the most important issues in the supply chain management and it is present in many companies. It preserves a character of invisibility because there are lots of causes for its formation and they are usually difficult to discern. The bullwhip effect is a phenomenon of an increase in the order variability within a supply chain. The higher we are within the supply chain, the higher is the order variability. The company encountered with the whip effect can successfully reduce its impact by improving the information flow, as well as improving partners’ cooperation within the supply chain. In this way the company can limit its negative repercussions and increase the profit. The article focuses on the overview of the bullwhip effect within a distribution chain, from its causes to suggestions and measures how to ease its negative repercussions on the organisation. Part of the causes could be found in the market demand variability and in the lack of communication about the actual marked demand within the supply chain. The rest of the causes are related to obstacles that emerge among different partners within the supply chain (role of culture). A qualitative analysis is applied on the basis of the selected cognitions from the supply chain management. The quantitative analysis is based on the theoretical research of the effective flow of information among the participants and its contribution to the reduction of the bullwhip impact. The article discusses two research questions: 1) The correct information flow within the supply chain and the improvement of the communication among partners can lead to the bullwhip effect reduction, and 2) A reduction of the bullwhip influence can lead to the increase of cooperation among partners. The results of the analysis can be used for further research. Document type: Article

Abstract

The external supply of logistics services is part of a trend toward outsourcing non-core logistics activities. The scope of third-party logistics may range from a relatively limited combination of activities (e.g. transportation and warehousing) to a comprehensive set of logistics services. The authors first discuss the characteristics of business logistics in manufactoring industry, to be taken into account in logistics outsourcing. They particularly point out the motivations for logistics outsourcing, the possibilities of outsourcing, as well as supplier selection. Finally they analyze the outsourcing in the reverse logistics. Vanjska opskrba (outsourcing) logističkih usluga predstavlja dio opće sklonosti tvrtki da prenesu pojedine aktivnosti na za to specijalizirane tvrtke, koje mogu te aktivnosti izvesti na visokoj razini. Ovo područje naziva se trećim dijelom logistike, a kreće se od relativno ograničene kombinacije aktivnosti (primjerice transporta i skladištenja), pa sve do sustavnog pristupa brojnim logističkim i inim aktivnostima. Autori u ovoj raspravi najprije posvećuju pozornost značajkama poslovne logistike u industrijskim proizvodnim tvrtkama, koje zavrjeđuju da budu uzete u razmatranje glede vanjske opskrbe logističkim uslugama (outsourcing). Posebice se prikazuju mogućnosti i motivi za odabir vanjskih opskrbljivača logističkim uslugama, kao i način selekcioniranja ponuđača. Na kraju se analiziraju osobitosti outsourcinga povratne logistike.