SCMAP Perspective #241
May 11, 2010 by carlo
Published in Port Calls, May 10, 2010
LOGISTICS GLOBAL COMPARISON
Fax 551-3207
Email lizaalmonte@yahoo.com.ph
By Ed Sanchez
SCMAP Executive Director
World Bank Logistics Performance
Supply Chain Asia magazine publishes Supply Chain Indicators as a regular feature. In the latest issue (March / April 2010), the magazine featured the World Bank Logistics Performance Index and Indicators 2010.
The report rates countries according to their overall logistics performance index (LPI), which is a number ranging from 0 (lowest) to 5 (best). Apart from the overall LPI, countries are also rated on six components of logistics performance. These are
- Customs
- Infrastructure
- International shipments
- Logistics competence
- Tracking and tracing
- Timeliness
One hundred countries are rated, with Germany landing at the top (4.11) and Nigeria at #100 (2.59). The top 20 countries are listed below. The Philippines is not among them.
|
4.11 4.09 4.08 4.07 3.98 3.97 3.97 3.95 3.94 3.93 3.89 3.89 3.88 3.87 3.86 3.85 3.84 3.84 3.76 3.71 |
Out of the top twenty, 13 are from Europe and only 4 are from Asia, the rest being Canada, US and Australia. None are from Latin America and Africa. The bunching of European countries at the top is not unexpected, as they are basically one compact land mass, and they use similar systems. No doubt the formation of EU has contributed to this. Our new logistics management mentor, Japan, is #7 (3.97).
Other East Asian countries are:
| 23. Korea, Rep.
27. China 29. Malaysia 35. Thailand 44. Philippines 47. India 53. Vietnam 75. Indonesia 79. Bangladesh |
3.64
3.49 3.44 3.29 3.14 3.12 2.96 2.76 2.74 |
Curiously, Latin American countries are rated low, the best performers being
| 41. Brazil4
8. Argentina 49. Chile 50. Mexico 51. Panama |
3.20
3.10 3.09 3.05 3.02 |
Costa Rica, Dominican Republic, Peru, Honduras, Ecuador, Colombia, Venezuela, El Salvador are even much worse. This is despite Latin America basically being one connected land mass, although not as compact as Europe, and also having basically one language, Spanish-Portuguese. Likewise, African countries are rated low
Of the six components of the Logistics Performance Index, the Best (Top 20) countries rated highest in Timeliness
Overall LPI (Top 20) |
4.279 4.068 4.027 3.936 3.764 3.551 3.924 |
The overall rank of the Philippines indicates that we are not hopeless on a global comparison; however we are only #9 out of 13 in our part of the world.
Comparing RP with the Best (Top 20), overall we are 0.78 point behind. The worst components are no surprise, Infrastructure (1.46 behind), followed by Customs (1.09 behind). We are close to being at par in International shipments (only 0.15 behind).
| ComponentCustomsInfrastructure
International shipments Logistics competence Tracking & tracing Timeliness Overall LPI |
Top 203.764.03
3.55 3.94 4.07 4.28 3.92 |
Phils.2.672.57
3.40 2.95 3.29 3.83 3.14 |
Gap1.091.46
0.15 0.99 0.78 0.45 0.78 |
Our Asian neighbors (excluding Middle East) fall into 3 groups
- Top 4, those in the Top 20 – Singapore, Japan, Hongkong, Taiwan
- Second group, not in the Top 20, but rated higher than RP – Korea, China, Malaysia, Thailand
- Third group, rated lower than RP – India, Vietnam, Indonesia, Bangladesh
Comparison with the Top 4 is like comparing with the Best above. With the Third group (not shown), RP proves to be superior in all components except Infrastructure, (RP 2.57) vs. Third group 2.62. Our Infrastructure belongs to the bottom.
Below is a comparison with the Second group. Our poor infrastructure shows, as well as Customs, whereas International shipments comes as a mild surprise.
| ComponentCustomsInfrastructure
International shipments Logistics competence Tracking & tracing Timeliness Overall LPI |
2nd Grp3.163.46
3.39 3.41 3.53 3.87 3.46 |
Phils.2.672.57
3.40 2.95 3.29 3.83 3.14 |
Gap0.480.88
(0.01) 0.46 0.24 0.04 0.32 |
Amb. Cesar Bautista and the rest of the NCC have a clear target. We need to improve on the low rated components – Infrastructure and Customs. Basically these are areas where the government must take the lead. A third area needing improvement is Logistics competence. Here the private sector, including SCMAP, can take the lead. Tracking & tracing and Timeliness are also areas for the private sector.
Upcoming Activities
- Logistics Immersion Course – an enhanced version of the erstwhile Shipping Immersion Course; includes topics in basic shipping and beyond, such as a snapshot of the Japan logistics system, infrastructure developments, Philippine economic performance and forecasts for 2010, May 13 – 15.
- Warehousing Seminar I – a 2-day seminar on basics plus advanced topics (wms, lean warehousing), with warehouse visit, June 17 – 18
- Sustainable Manufacturing Forum – a Marcus Evans organized event endorsed by SCMAP, June 28 – 29
- 2010 Supply Chain Conference – SCMAP’s biggest event of the year. A 2-day conference and exhibit, with this year’s theme of “Supply Chain: Key to Driving and Sustaining Operational Excellence, Business Growth and Profitability”, Sept. 23 – 24. Sponsorship and advertisement packages are still available.
Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com. Those interested in SCMAP training and other activities are requested to send their e-mail addresses. Visit SCMAP’s website at:www.scmap.org
