Wars have been won or lost on the strength of logistics capability or lack of it. Although quite anold concept, logistics has been becoming efficient only since the globalisation wave of the early1990s and hence, the businesses supported by it, worldwide, have been pushed for competitivebalance-sheets, providing consumers a better product/service and yet adding value to itsinvestors.Triggering intense competition, globalisation, coupled with liberalisation, forced both private andpublic firms to commit themselves to making available to their customers the right material ofright condition, at the right time and place at the lowest cost
be it a product or a service.The World Bank, in a recent survey
Connecting to Compete: Trade Logistics in the Global Economy
, has developed a Logistics Performance Index (LPI) that can serve as a
benchmarking tool for measuring performance of businesses along a country’s logistics sup
plychain. The Bank study asserts that countries that are able to connect to the global logistics webwould not only have access to vast new markets but also remain a part of the global tradegrowth. The report avers that it is not the income of nations but their undergoing tradeexpansion that determines their logistics efficiency, as the survey shows that nations withincreasing trade (imports and exports) to GDP emerged as the out-performers on the LPI scalerelative to their income levels. It also warns that those countries whose links with the globallogistics chain are weak are bound to face large and growing costs of exclusion frominternational trade. India trails behind China on important indices such as customs procedures,overall infrastructure quality, international shipment, logistics competence and tracking ofshipments, but is ahead of the latter on the domestic logistics efficiency front.