Академический Документы
Профессиональный Документы
Культура Документы
by
MUHAMMAD ZAIN SIDDIQUI
Reg #: 8709
Submitted to: Mr. Farhan Mehboob
A thesis
submitted in partial fulfillment of the requirements
for the degree of Master of Business Administration
to
the Iqra University.
Karachi, Pakistan
JANUARY, 2015
Abstract
The underlying objective and purpose of this thesis is to test a model that studies
relationship between costs to export, cost to import, GDP, trade services, per capita income
and IT on logistics performance index. This research will assist the logistics industry for
identifying the opportunities and challenges in terms of their trade logistics performance,
what factors affect this benchmarking tool and what steps can the logistics industry take to
improvise their performance.
Table of Contents
Abstract................................................................................................................................
Chapter 1 Introduction.........................................................................................................
1.0 Overview..................................................................................................1
1.1 Background..............................................................................................2
1.2 Problem Statement...................................................................................3
1.3 Purpose of Research.................................................................................3
1.4 Objectives of Research.............................................................................4
1.5 Research Questions..................................................................................4
1.6 Research Hypothesis................................................................................5
1.7 Limitation of Study..................................................................................5
1.8 Scope........................................................................................................5
Chapter 2 Literature Review................................................................................................
2.1 Theoretical Background...........................................................................8
2.2 Logistics...................................................................................................8
2.3 Empirical Studies.....................................................................................9
2.4 Logistics Framework..............................................................................10
2.5 Trade Services........................................................................................12
2.6 Cost to Export / Cost to Import..............................................................12
2.7 Conceptual Framework..........................................................................13
Chapter 3 Methodology.....................................................................................................
3.1Research Purpose....................................................................................15
3.2 Research Approach.................................................................................15
3.3 Research Design.....................................................................................15
3.4 Secondary Data:.....................................................................................16
3.7 Research Model......................................................................................16
3.8 Variables Description.............................................................................17
3.8.1 Dependent Variable:............................................................................17
LPI: Logistic Performance Index (overall).......................................................
3.8.2 Independent Variable:..........................................................................18
Trade Services...................................................................................................
Cost to Export / Cost to Import.........................................................................
References..........................................................................................................................
Chapter 1 Introduction
Performance?
What is the impact of cost to import and import of goods and services on Logistics
Performance?
What is the impact of GDP on Logistics Performance?
What is the impact of per capita income on Logistics Performance?
What is the impact of Information Technology on Logistics Performance?
HO1: Cost to export and export of goods and services does not affect Logistics
Performance?
HO2: Cost to import and import of goods and services does not affect Logistics
Performance?
HO3: GDP does not affect Logistics Performance?
HO4: Per capita income does not affect Logistics Performance?
Ho5: Information Technology does not affect Logistics Performance?
2.2 Logistics
Logistics by definition is considered a functional system that incorporates
coordination and combination of operations of diverse transport modes as a primary prerequisite for making sure that there is efficient service (Leal, 2012). In other words, logistics
can be defined as a management framework for business planning for management of capital
flows, information, service and material. Logistics function also incorporates the intricate
control systems, IT and information that are needed in todays dynamic business
9
Effectiveness of clearance process monitored by customs agencies
Quality of transport infrastructure that is needed for efficient logistics
Affordability and easiness of arranging shipments
Ability to trace and track shipments
Proficiency in local logistics industry (for instance, customs brokers and transport
operators)
Costs of domestic logistics (for instance, warehousing, terminal handling and local
transportation)
The second constituent of logistics performance is domestic logistics performance
indicator that provides quantitative and qualitative assessments of a countrys logistics by
professionals working inside it. According to Solakivi, Tyli, Engblom and Ojala (2011)
domestic logistics tend to include comprehensive information on the cost data, performance
time, institutions, and core logistics processes and logistics environment.
Fig 2.4
Retrieved From: (WTO 2012)
The components of supply chain delivery and logistics are selected on the basis of
empirical and recent theoretical research and moreover on practical understanding of
logistics professionals that are concerned with international freight forwarding (as shown in
Fig 2.4). There have been four logistics performance surveys made so far accordingly in
2007, 2010, 2012 and 2014. On the basis of the worldwide survey of express carriers and
global freight forwarders, the LPI is regarded as a benchmarking tool that evaluates
performance of a country in terms of the efficacy of its logistics supply chain. This index
allows comparisons of 160 countries, and therefore helps the countries in identifying
opportunities and challenges in improving their logistics performance (WTO 2014). The
value of logistics LPI ranges from 1 to 5, in which higher the number of index, the better
comparative performance of the country (The World Bank 2014).
2.5 Trade Services
Chapter 3 Methodology
References
Arvis, J. F., Mustra, M. A., Ojala, L., Shepherd, B., & Saslavsky, D. (2012). Connecting to
compete 2012: Trade logistics in the global economy.
Arvis, J. F., Mustra, M. A., Panzer, J., Ojala, L., & Naula, T. (2007). Connecting to compete:
Trade logistics in the global economy. World Bank. Washington, DC. http://www.
worldbank. org/lpi.
Arvis, J. F., Saslavsky, D., Ojala, L., Shepherd, B., Busch, C., & Raj, A. (2014). Connecting
to Compete 2014: Trade Logistics in the Global Economy--The Logistics Performance
Index and Its Indicators.
Collingridge, D. S., & Gantt, E. E. (2008). The quality of qualitative research.American
Journal of Medical Quality, 23(5), 389-395.
Commandeur, J. J., & Koopman, S. J. (2007). An introduction to state space time series
analysis. Oxford University Press.
Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods
approach. Sage.
Diop, N. (2010). Trade competitiveness of the Middle East and North Africa: policies for
export diversification. World Bank Publications.
Gill, J., & Johnson, P. (2010). Research methods for managers. Sage.
Halldrsson, A., & Skjtt-Larsen, T. (2004). Developing logistics competencies through third
party logistics relationships. International Journal of Operations & Production
Management, 24(2), 192-206.
Hausman, W. H., Lee, H. L., & Subramanian, U. (2005). Global logistics indicators, supply
chain metrics, and bilateral trade patterns.
Havenga, J. H. (2011). Trade facilitation through logistics performance: The enabling role of
national government. Journal of Transport and Supply Chain Management, 5(1), 123148.
Havenga, J. H. (2011). Trade facilitation through logistics performance: the enabling role of
national government. Journal of Transport and Supply Chain Management, 5(1), 123148.
Rungtusanatham, M., Salvador, F., Forza, C., & Choi, T. Y. (2003). Supply-chain linkages
and operational performance: a resource-based-view perspective. International
Journal of Operations & Production Management,23(9), 1084-1099.
Sandberg, E., & Abrahamsson, M. (2011). Logistics capabilities for sustainable competitive
advantage. International Journal of Logistics: Research and Applications, 14(1), 6175.
Solakivi, T., Tyli, J., Engblom, J., & Ojala, L. (2011). Logistics outsourcing and company
performance of SMEs: evidence from 223 firms operating in Finland.Strategic
Outsourcing: An International Journal, 4(2), 131-151.
Tyli, J., Hkkinen, L., Ojala, L., & Naula, T. (2008). Logistics and financial performance:
An analysis of 424 Finnish small and medium-sized enterprises. International Journal
of Physical Distribution & Logistics Management, 38(1), 57-80.
Turkson, F. E. (2011). Logistics and bilateral exports in developing countries: A
multiplicative form estimation of the logistics augmented gravity equation (No. 11/06).
CREDIT Research Paper.
World Economic Forum (2013). Outlook on the Logistics & Supply Chain Industry 2013.
Retrieved from:
http://www3.weforum.org/docs/WEF_GAC_LogisticsSupplyChainSystems_Outlook_
2013.pd
Countries
/Variables
Russian
Federation
China
USA
Canada
Brazil
India
Argentina
Kazakhstan
Algeria
Saudia
Arabia
Mexico
Indonesia
Peru
Land
area
(sq.
km)
Trade
in
servic
es (%
of
GDP)
Import
s of
goods
and
service
s (BoP,
curren
t US$)
Comm
unicati
ons,
comput
er, etc.
(% of
service
exports
, BoP)
Expo
rts of
goods
and
servic
es
(BoP,
curre
nt
US$)
1637
6870
7.977
257
3.22E+
11
43.8491
6
4.46E
+11
2585
2685
2.61
9327
480
5.994
173
1.52E+
12
48.7666
9
1.74E
+12
500
545
3.49
9147
420
6.563
28
2.34E+
12
47.3740
1
1.84E
+12
1050
1315
3.86
9093
510
10.17
227
4.93E+
11
49.2941
4
4.62E
+11
1610
1660
3.87
8459
420
4.405
58
2.44E+
11
58.0816
5
2.34E
+11
1790
1975
3.2
2973
190
14.28
498
4.4E+1
1
71.5641
2
3.49E
+11
1055
1105
3.12
2736
690
7.396
604
6.81E+
10
46.5211
3
8.12E
+10
1480
1810
3.1
2699
700
10.52
689
4.42E+
10
20.4327
5
6.58E
+10
3005
3055
2.83
2381
740
9.551
829
5.08E+
10
64.9747
6
6.07E
+10
1248
1318
2.36
2149
690
19.40
039
1.74E+
11
6.54537
1
2.62E
+11
765
936
3.22
1943
950
3.896
81
3.27E+
11
1.87249
9
3.14E
+11
1420
1880
3.05
1811
570
6.052
753
1.54E+
11
40.4876
7
1.75E
+11
644
660
2.76
1280
000
6.334
541
3.49E+
10
16.4039
9
3.93E
+10
860
880
2.8
Cost
to
expo
rt
(US$
per
cont
ainer
)
Cost
to
impo
rt
(US$
per
cont
ainer
)
Logistics
perform
ance
index:
Overall
(1=low
to
5=high)
GD
P
(cur
rent
US$
)
1.49
E+1
2
5.93
E+1
2
1.44
E+1
3
1.58
E+1
2
2.14
E+1
2
1.68
E+1
2
3.69
E+1
1
1.48
E+1
1
1.62
E+1
1
4.51
E+1
1
1.04
E+1
2
7.08
E+1
1
1.54
E+1
1
GDP
per
capita
(curre
nt
US$)
10481
.37
4432.
964
46611.
98
46212
.03
10992
.94
1375.
384
9123.
714
9070.
01
4566.
891
16423
.44
9127.
541
2951.
699
5283.
225
Angola
South Africa
Colombia
Egypt, Arab
Rep.
Nigeria
Venezuela,
RB
Pakistan
Turkey
Chile
Ukrain
France
Thailand
Spain
Iraq
Sweden
Paraguay
Japan
Germany
1246
700
23.77
959
3.54E+
10
11.0987
7
5.15E
+10
1850
2840
2.25
1214
470
8.929
244
1E+11
15.7314
7
9.97E
+10
1531
1807
3.46
1109
500
4.370
378
4.67E+
10
24.9771
7
4.53E
+10
1770
1700
2.77
9954
50
17.59
968
5.99E+
10
12.9629
9
4.88E
+10
613
755
2.61
9107
70
10.71
713
6.78E+
10
17.1015
8
7.98E
+10
1263
1440
2.59
8820
50
3.276
982
4.97E+
10
29.3484
1
6.76E
+10
2590
2868
2.68
7708
80
7.761
895
4E+10
72.3646
3
2.81E
+10
611
680
2.53
7696
30
7.456
12
1.97E+
11
9.71888
9
1.56E
+11
990
1063
3.22
7435
30
10.45
442
6.7E+1
0
21.9026
9
8.18E
+10
745
745
3.09
5793
20
21.78
881
7.32E+
10
29.0904
8
6.93E
+10
1560
1580
2.57
5476
60
14.23
293
7.61E+
11
50.2520
6
7.11E
+11
1078
1248
3.84
5108
90
24.81
778
2.07E+
11
23.4413
7
2.28E
+11
625
795
3.29
4988
00
15.36
936
4.08E+
11
36.3505
9
3.81E
+11
1221
1350
3.63
4343
20
15.66
197
4.72E+
10
27.0623
9
5.46E
+10
3550
3650
2.11
4103
40
23.69
149
1.96E+
11
63.9245
2
2.23E
+11
697
735
4.08
3973
00
12.15
252
1.07E+
10
67.7479
8
9.99E
+09
1440
1750
2.75
3645
00
5.448
338
7.97E+
11
59.6665
2
8.72E
+11
880
970
3.97
3486
10
15.56
605
1.37E+
12
54.8277
4
1.56E
+12
872
937
4.11
8.25
E+1
0
3.64
E+1
1
2.86
E+1
1
2.19
E+1
1
2.29
E+1
1
3.94
E+1
1
1.76
E+1
1
7.31
E+1
1
2.16
E+1
1
1.36
E+1
1
2.55
E+1
2
3.19
E+1
1
1.38
E+1
2
8.11
E+1
0
4.63
E+1
1
1.83
E+1
0
5.49
E+1
2
3.28
E+1
2
4321.
941
7271.
729
6186.
025
2698.
365
1443.
21
13657
.75
1016.
614
10049
.77
12639
.52
2973.
982
39170
.26
4613.
681
29956
.16
2532.
324
49359
.87
2840.
35
43063
.14
40163
.82
Malaysia
Oman
Norway
Poland
Finland
Philippines
Italy
New Zealand
Ecuador
UK
3285
50
26.32
531
1.89E+
11
29.7728
7
2.32E
+11
450
450
3.44
3095
00
14.15
726
2.42E+
10
24.6575
3
3.85E
+10
725
660
2.84
3054
70
3042
00
20.30
881
13.26
956
1.19E+
11
2.07E+
11
38.8821
41.7935
1
1.71E
+11
1.98E
+11
955
929
3.93
884
884
3.44
3039
00
2981
70
22.72
641
12.75
368
9.27E+
10
7.31E+
10
75.2413
3
70.9400
5
9.64E
+10
6.48E
+10
540
620
3.89
630
730
3.14
2941
40
10.16
914
5.86E+
11
40.2824
4
5.45E
+11
1245
1245
3.64
2633
10
2483
60
12.98
262
7.732
078
3.89E+
10
2.27E+
10
24.4700
1
855
825
3.65
22.4717
4.09E
+10
1.96E
+10
1455
1402
2.77
2419
30
18.84
505
7.32E+
11
51.7440
2
6.68E
+11
950
1045
3.95
2.47
E+1
1
5.78
E+1
0
4.18
E+1
1
4.7E
+11
2.35
E+1
1
2E+
11
2.04
E+1
2
1.42
E+1
1
5.8E
+10
2.26
E+1
2
8690.
57
20790
.84
85443
.06
12303
.21
43863
.97
2140.
122
33786
.64
32407
.07
4008.
238
36256
.01