Exploring temporal dependencies among country-level logistics performance indicators

Abstract

PurposeThe Logistics Performance Index (LPI), published by the World Bank, is a key measure of national-level logistics performance. It comprises six indicators: customs, infrastructure, international shipments, service quality, timeliness, and tracking and tracing. The objective of this study is to explore temporal dependencies among the six LPI indicators while operationalizing the World Bank’s LPI framework in terms of mapping the input indicators (customs, infrastructure, and service quality) to the outcome indicators (international shipments representing cost, timeliness, and tracking and tracing representing reliability).Design/methodology/approachA Bayesian Belief Network (BBN)-based methodology was adopted to effectively map temporal dependencies among variables in a probabilistic network setting. Using forward and backward propagation features of BBN inferencing, critical variables were also identified. A BBN model was developed using the World Bank’s LPI datasets for 2010, 2012, 2014, 2016, 2018, and 2023, covering the six LPI indicators for 118 countries.FindingsThe prediction accuracy of the model is 88.1%. Strong dependencies are found across the six LPI indicators over time. The forward propagation analysis of the model reveals that “logistics competence and quality” is the most critical input indicator that can influence all three outcome indicators over time. The backward propagation analysis indicates that “customs” is the most critical indicator for improving the performance on the “international shipments” indicator, whereas “logistics competence and quality” can significantly improve the performance on the “timeliness” and “tracking and tracing” indicators. The sensitivity analysis of the model reveals that “logistics competence and quality” and “infrastructure” are the key indicators that can influence the results across the three outcome indicators. These findings provide useful insights to researchers regarding the importance of exploring the temporal modeling of dependencies among the LPI indicators. Moreover, policymakers can use these findings to help their countries target specific input indicators to improve country-level logistics performance.Originality/valueThis paper contributes to the literature on logistics management by exploring the temporal dependencies among the six LPI indicators for 118 countries over the last 14 years. Moreover, this paper proposes and operationalizes a data-driven BBN modeling approach in this unique context.