HOW TO MEASURE LOGISTICS PERFORMANCE OF REGIONS WITHIN A COUNTRY

ABSTRACT Purpose: A number of indices exist to measure the logistics performance of countries (e.g. Logistics Performance Index – Arvis et al. 2014, Global Competitiveness Report - Schwab and Sala-i-Martin 2014). However, due to their global approach, they are not suitable for the measurement of logistics performance of a single and highly developed country. The aim of this research is to develop a procedure on how to measure the logistics performance capability of regions within a particular country. To this end, an indicator system is established and the regions of Austria are evaluated as an example. The results give politicians and decision makers in logistics and infrastructure development recommendations at hand on how to sustainably improve logistics within regions. Design/methodology/approach: A review of already existing indices was conducted, where the methodology and the included key performance indicators were analysed. The indicators were pre-processed in a scientific workshop following Hohenstein et al. (2014). Furthermore, an expert workshop series with important stakeholders was conducted, determining the most influential indicators and discussing on how to operationalize them. In order to measure the indicators, a survey is to be conducted and secondary data will be used. To secure objectivity, replicability and a limited effort to update the evaluation priority is given to secondary data sources, and only a limited number of questions are needed. Finally, data will be aggregated to one overall rating for each region. Findings: This measurement lead to a stable index, which make changes and the impact of applied improvement potentials traceable on different dimensions of logistics performance. The measurement gives a comparison of strengths and weaknesses of the different regions and improvement potentials can be deducted and verified in turn. Originality/value: A procedure on how to measure the logistics performance capability of regions within a particular country is developed and prototypically applied for the regions in Austria. Research limitations/implications: At current state the indicator system is established to display logistical performance and improvement potentials with a special focus to the specifics of Austrian regions. Further research could apply and adapt this approach to other countries to enhance applicability. Practical implications: This index will help politicians and decision makers in the field of logistics to better direct their investments on a regional level and to better understand the impact of their past activities. Keywords: Logistics performance, performance capability, key performance indicator, sustainability, performance measurement