The World Bank provides a score for logistics performance in 139 countries worldwide, known as the Logistics Performance Index (LPI).
The LPI serves as a comparative tool to identify challenges and opportunities in logistics performance, primarily in the development of the trading sector of the respective countries.
The scoring scale is 0-5. The higher the score, the better the country's logistics performance, and vice versa.
Singapore holds the top position with a score of 4.3 points. Closely behind is Finland with a score of 4.2 points.
Next are Denmark, Germany, the Netherlands, and Switzerland, all achieving the same score of 4.1 points.
Following these are Austria, Belgium, Canada, and Hong Kong, all scoring 4 points.
Unfortunately, Indonesia did not make it into the top 10, achieving a score of only 3 points.
The World Bank's LPI analyzes countries through six indicators:
First, the efficiency of customs and border management permits. Second, the quality of trade and transport-related infrastructure. Third, the ease of arranging reasonably priced or competitive international shipments.
Fourth, an assessment of the competence and quality of logistics services. Fifth, the ability to track shipments. Sixth, the timeliness of delivery.
"Indicators were selected based on theoretical and empirical research and the practical experience of logistics professionals involved in international freight forwarding," the World Bank wrote in its report.
The LPI uses standard statistical techniques to aggregate data into a single indicator, transforming qualitative information into quantitative data before combining and weighting the assessments.