Keeping tabs on the competition: Assessing the performance of the transport logistics chain

Introduction
We know from recent literature that transport inefficiency can have a substantial impact on total transport cost. Factors all along the transport logistics chain, inside a country and at its border crossings, all contribute to the cost of doing business in a country. By extension, the economic impact of these inefficiencies can have harmful effects on a country’s competitiveness.

There is a gap in the ability of available tools to assess logistics performance on a consistent, standardized basis – especially one where equitable comparisons can be drawn between transport corridors in differing economic conditions, with performance scores based on terms commonly used and understood by the industry. To fill this gap, Nathan Associates developed an innovative ‘toolbox’ dubbed FastPath, which consists of an audit methodology and a computerized model. The audit methodology captures the range of data needed to assess performance, and the model measures the performance in detail.

To use the model, the user ‘sketches’ the system of links (for example, roads, inland waterways, rail, and coastal shipping) and nodes (ports, intermodal yards, dry ports, etc.) in the logistics chain on a graphic screen, and enters collected data for each link and node. The model then issues a report presenting time, cost, and reliability scores for each link and node, and for the transport logistics chain as a whole. It then compares these scores with regional norms and international benchmarks. Additionally, ‘what if ’ scenarios can be created to gauge the impact on freight corridor performance of various intervention options, such as investments in infrastructure and changes in clearance procedures.

Where specific data are not available or easily obtainable, the model turns to default performance indicators based on responses to qualitative queries (for example, is the road mountainous? Is the road congested?). The model can assess sub-chains or the entire logistics chain, identify bottlenecks, and screen and evaluate potential interventions, thus allowing users to narrow the field of solutions to those that would have the greatest impact on logistics chain performance. The model also makes novel use of international norms and benchmarks to aid the user in measuring performance.

Overall design and functionality requirements
In summary, we defined the following design parameters and attributes for the software application:

  •  Ease of use for government, economists, policymakers, and planners;
  •  Ability to apply it to a var iety of transport logistics environments;
  •  User-defined graphical depiction of logistics chain links, nodes, and performance;
Paul E. Kent, Ph.D., Vice President, Infrastructure Planning and Economics, Nathan Associates Inc., Arlington, VA, USA
Edition: Edition 47

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