A Study on the Efficiency Analysis of Korean Courier Companies

Abstract

This study has analyzed the efficiency of courier companies in Korea in order to provide direction for growth in the fierce competitive market. Based on a reliable source of data, 15 companies are selected as Decision Making Units. In terms of the analysis, four models are adopted. For static analysis, CCR, BCC, and super-efficiency levels are suggested. For dynamic analysis, Malmquist productivity index are analyzed. The result of the CCR and BCC analysis suggest that 8 companies that found a niche market are found to be efficient. They had competitive edge on specialized areas of business sectors. Super efficiency analysis also showed 12 companies to be efficient which means that in the times of Covid19, companies enjoyed the opportunity of growing cargo demands from Covid19 are found to be operated efficiently. From malmquist analysis, there are companies found to be improved and degraded in terms of efficiency levels. It is obvious that traditional logistics companies with size and network still remain competitive while others either enjoy or struggle to compete and survive in the Korean market.