The World Bank has just released the new Logistics Performance Index 2012 along with its report, showing how the LPI also impacts on supply chains. After all, “supply chains are only as strong as their weakest links” (quoted from the report in fact).
The gap between high and low performers in the LPI remains high. The bottom quintile is mostly made up of landlocked countries (or small island states), post-conflict zones and countries seriously impacted by natural disasters… The LPI also makes a link between income and LPI score, yet there are numerous under- and over-performers, i.e. income alone doesn’t make the difference. So what does? The way forward is outlined to consist of investments in trade-related infrastructure (road quality, rail infrastructure), improving logistics services in developing countries, co-ordinating border management, regional facilitation and integration, national data for reforms, and for a differentiator in the final (strongest) quintile, supply chain sustainability and development. I bet the next doctoral course on Trade and Transport Facilitation will shed some more light on these issues, after all, many of those who contributed to the report will also be the faculty in the course.