Logistics performance, both internationally and locally, is vital for a countries’ economic growth. The Logistics Performance Index (LPI), brought out by the World Bank’s Trade team, assesses 160 countries’ performance in trade logistics and helps to identify challenges they face and ways they can improve. The LPI covers both domestic and international logistics and gives detailed comparisons of 160 countries. The methodology involves worldwide surveys of users on the ground, giving both qualitative and quantitative feedback on these key areas:
- Quality of service
- Border procedures and time
- Supply chain reliability
2016 LPI results
The 2016 findings show a slowing of progress in the logistics performance of the world’s least developed economies, while some emerging economies have shown improvement. According to the Index, countries like Kenya, India and China all ranked higher than previous years. The world’s top-10 performers have remained competitive, with Germany continuing to be rated the highest achieving country in the supply chain industry. South Africa has shown a marked improvement and came out tops in the upper-middle income category with an LPI score of 3.78 and is ranked 20th globally. Our best scores being for timeliness and tracking and tracing of parcels.
Priorities have shifted over the last 10 years, with the need for the logistics industry to look at network re-organisation and ways to innovate. The findings revealed major challenges in the logistics industry including the need to improve skills and competency levels and find ways to adapt to slower economic growth. Sustainability and managing the carbon footprint of all aspects of the supply chain is also now been seen as a high priority.