Supply Chain Flagship Newstletter December 17, 2018
By Dan Gilmore
In the end, using some standard statistical methods, every country included in the Index is given a score between 1 and 160 for each attribute, with that score ultimately translated to a number between 0 and 5 (to two decimal places), which are then averaged to produce a final score.
How does the World Bank acquire such data? The results are obtained from an elaborate survey of freight forwarders and 3PLs worldwide, which seems like a reasonable approach to me. The surveying is quite sophisticated, with respondents rating logistics competence in their own countries and then also a limited number of other countries they know best.
The survey is also conducted in two phases, with results from the first phase used to target respondents for the second phase to get enough data for the results to be significant for each country.
|European countries as usual dominated the rankings, holding the top four spots, 8 of the top 10, and 13 of the top 20. China came in at number 26, up one spot from 27 in 2016. Mexico was number 51.
Interestingly, for all the handwringing relative to US logistics infrastructure challenges, the US actually ranked number 7 in the world on that attribute, up from the 8th spot in 2018. But also as in the last report, the US would have been near the top ranking overall except for a relatively poor rating of number 23 on ease of international shipments.
Top ranked Germany also rated as having the best logistics infrastructure, I’ll note.
Five countries have been in the top 10 overall for the last four reports, dating back to 2012: Germany, Netherlands, Belgium, United Kingdom, and Singapore. Sweden would be on that list too except for oddly falling to 15 in 2012, almost certainly a statistical aberration.
There has been some change but not a lot in the rankings over time. Below is a table SCDigest created to show how this year’s top 10 ranked in previous reports dating back to 2012. Obviously there is some “noise” in the data – we doubt Finland’s logistics performance really fell from a 3 ranking to 24 between 2012 and 2014, so we also average out the scores of this year’s top 10 over the past four reports in the last column for some additional perspective. Clearly Germany, Sweden, Singapore and the Netherlands have been dominant over time.
The WTO continues to hinting that it may start rating the logistics capabilities of major cities around the globe before too long, the report says “The World Bank is thus increasingly involved in urban logistics projects in Brazil, China, Kenya, Morocco, and other countries.”
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