How to Improve the Logistics Performance Index

This study paper aims to empirically investigates the effects of various components of the Logistics Performance Index (LPI). The LPI consists of six aspects: trade- and transport-related infrastructure, customs and border management, logistics service quality, timeliness of shipments, ability to track and trace, and availability of competitively priced international shipments. This study utilizes LPI data collected from the World Bank index, the International Federation of Freight Forwarders Associations, national freight forwarding associations, and numerous logistics companies worldwide over seven years. Decision tree regression analysis using JASP software revealed that logistics service quality significantly impacts the Logistics Performance Index, followed by trade- and transport-related infrastructure, the ability to track and trace, customs and border management, timeliness of shipments, and availability of competitively priced international shipments. Based on these findings, the authors suggest recommendations for logistics enterprises and government bodies worldwide to enhance the Logistics Performance Index alongside their respective development policies.