Proceedings of ICLT 2022
Benchmarking the National Logistics Costs: a Case of 49 Countries
Paitoon Varadejsatitwong; Ruth Banomyong; Puthipong Julagasigorn
Center of Excellence in Connectivity, Thammasat Business School, Thammasat University, Thailand; Thammasat Business School, Thammasat University, Thailand, Bangkok, Thailand; Thammasat Business School, Thammasat University, Thailand, Bangkok, Thailand
International Conference on Logistics & Transport 2022, Krabi, Thailand, pp. 20-23
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Abstract
Ratio of national logistics costs per gross domestic product (NLC/GDP) is considered as an important indicator for evaluating a nation’s logistics efficiency. This study presents such ratios of 49 countries, which were calculated based on the same method and data sources. Such similar method and data sources enable a comparative analysis in this study. Robert Delaney’s method, a method used to calculate the US’s logistics costs per GDP, was employed to derive the ratio for each of 49 countries. Empirical data used the secondary data gathered from National Account of Asian Development Bank (ADB), an organization reports logistics costs-related data of the 49 countries under study. The main components of logistic costs, including (1) transportation costs, (2) warehousing costs, (3) inventory carrying costs, and (4) logistics administrative costs, were calculated to derive a ratio of NLC/GDP for each country. Results of a comparative analysis are reported based on two classifications, (1) a classification using the level of country development (developing versus developed countries) and (2) a classification based on income levels (low income, lower-middle income, upper-middle income, and high income countries). Results further revealed a NLC of each country that can be obviously comparable. As these ratios were calculated using a similar method and obtained data from similar sources, such a comparison is new to macro logistics literature. Policymakers may use the results in this study to develop a logistics development policy for their countries for use in improving and enhancing their national logistics capability. In addition, academia may employ the approach used in this study with a National Account’s data to derive a NLC/GDP.
Keywords
national logistics cost; gross domestic product; National Account data
Citation
Paitoon Varadejsatitwong; Ruth Banomyong; Puthipong Julagasigorn (2022). Benchmarking the National Logistics Costs: a Case of 49 Countries. Proceedings of the International Conference on Logistics & Transport (ICLT 2022), Krabi, Thailand, pp. 20-23.