Distributed Logistics and Quality: an overview
World Bank ranked Italy 21 on 167 countries analysed. In the report "Connecting to compete - Trade logistics in the Global Economy", a report summarizing the findings from the new dataset for the Logistics Performance Index (LPI) and its component indicators.
The LPI is an interactive benchmarking tool which LPI encapsulates the firsthand knowledge of movers of international trade. This information is relevant for policymakers and the private sector seeking to identify reform priorities for "soft" and "hard" trade and logistics infrastructure.
Findings include gaps in logistics performance between the bottom and top performers persist. Supply chain reliability and service quality are strongly associated with logistics performance. Infrastructure and trade facilitation initiatives still play an important role in assuring basic connectivity and access to gateways for most developing countries. The logistics policy agenda continues to broaden, with growing focus on supply chain resilience, cyber security, environmental sustainability, and skills shortages.
Quality, in fact, does not only mean obtaining certifications, but also the ability offering a service able of keeping up with the times, offering cutting-edge solutions that meet the changing needs of consumers. What is the state of the art of the logistic landscape? Find out in this article.
Logistics policies: Logistic Performance matters
Logistics is now an elevated priority recognized everywhere because facilitating trade and transport is at the core of stimulating economic development. Well-functioning domestic and international logistics is a precondition of national and international competitiveness.
And fact-based metrics can provide reliable benchmarks, assess policy impacts, and compare global advances in logistics. Previous editions of "Connecting to Compete" have highlighted how the implementation of better policies leads to better logistics performance. In this sense, important changes have been made. Initially, in fact, Logistic strategies tended to focus on facilitating trade and on removing bottlenecks at borders. Today, however, international logistics is increasingly intertwined with internal logistics: the scope of discussion includes the re-planning of spaces, the environmental, social and economic sustainability of the supply chain, and not least the supply chain's ability to face the onset of problems with increasingly smart solutions. A greater quality of the sector, therefore, is given by the sector policies undertaken to transform the logistic service in adherence to the modern principles that move the market. To learn more about this topic, you can read the article "Logistics and Industry 4.0: the changes taking place".
Key Performance Indicators in a State-of-The-Art Logistics System
A Key Performance Indicators is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets. What, then, are the performance indicators for superior logistics?
- the efficiency of customs and border management clearance;
- the quality of trade -and transport- related infrastructure;
- the ease of arranging competitively priced international shipments;
- the competence and quality of logistics services;
- the ability to track and trace consignments;
- the frequency with which shipments reach consignees within the scheduled or expected delivery time.
These criteria combine long-standing themes (customs and procedures), (quality of infrastructure) to more recent indicators related to logistical efficiency (systems of tracing and tracking of shipments and punctuality of deliveries) that have acquired great importance due to the trends generated by the digitalization of our company.
The quality of the service varies, substantially, with changes in the perception of the quality of the infrastructure according to many facts. An example? Even a high-quality infrastructure, equipped with the most advanced technologies, can not replace operational excellence based on professional skills and impeccable business processes.
Global supply-chain management can be impacted by several actors who impose policies that regulate certain aspects of supply chains. Governmental and non-governmental organizations play a key role in the field as they create and enforce laws or regulations which companies must abide by. These regulatory policies often regulate social issues that pertain to the implementation and operation of a global supply chain (e.g. labour, environmental, etc.). These regulatory policies force companies to obey the regulations set in place which often impact a company's profit.
Operating and managing a global supply chain comes with several risks. These risks can be divided into two main categories: supply-side risk and demand side risk. Supply-side risk is a category that includes risks accompanied by the availability of raw materials which effects the ability of the company to satisfy customer demands. Demand-side risk is a category that includes risks that pertain to the availability of the finished product. Successful global supply-chain management occurs after implementing the appropriate framework of concentration, complying with international regulations set by governments and non-governmental organizations, and recognizing and appropriately handling the risks involved while maximizing profit and minimizing waste.
In conclusion, even though global supply chains are becoming increasingly complex due to regulatory requirements, motivated by safety, social and environmental issues, logistics excellence is not only possible, but also fundamental in guaranteeing a competitive advantage to one’s own business. It’s pretty simple in the end: your company’s market success depends on global supply chain excellence. To achieve that you need to rely on a logistic-distributive supplier that puts in place the people, processes and technology required to deliver world class cost and service performance. Corporate competitiveness also depends on the ability to manage logistics and the current trends in the sector. Would you like to learn more about the most recent trends? Click on the image below and download our White Paper!
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