zohaib aziz shaikh 9374 final thesis

7/24/2019 Zohaib Aziz Shaikh 9374 Final Thesis..

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Factors Affecting Logistics Performance:

A global supply chain perspective

A thesis submitted

By

Zohaib Aziz Shaikh (9374)

To

Department of Business Administration

n partia! fu!fi!ment of

The re"uirement for the

De#ree of

$AST%& ' BS*%SS AD$*ST&AT'*

n

Supp!y +hain $ana#ement

This thesis has been

A,,epted by the fa,u!ty

A+-T. ' BS*%SS AD$*ST&AT'*

$r/ arhan$ehboob

Ad0isor

$r/ Syed A!i &aza

$ana#er &esear,h


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Acknowledgement

irst of a!! 1ou!d !ike to thank A!mi#hty A!!ah the #reatest of a!! for #i0in# me the

stren#th and determination to ,omp!ete this resear,h/ Se,ond!y 1ou!d !ike to thank my thesis

super0isor $r/ arhan $ehboob for his mar0e!!ous support2 he!p and super0ision throu#hout this

study/

-ast but not the !east 1ou!d !ike to thank my parents and friends for their ,ontinuous

en,oura#ement and support not ust durin# this resear,h 1ork but throu#hout my !ife/


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Table of Contents

A,kno1!ed#ement////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////i

Abstra,t////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////0

+hapter 5 ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

/ ntrodu,tion//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////6

/ &esear,h Ba,k#round///////////////////////////////////////////////////////////////////////////////////////////////////////////3

/6 8rob!em Statement////////////////////////////////////////////////////////////////////////////////////////////////////////////////3

/3 &esear,h uestion////////////////////////////////////////////////////////////////////////////////////////////////////////////////3

/4 :ypotheses////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////4

/; &esear,h 'be,ti0e///////////////////////////////////////////////////////////////////////////////////////////////////////////////4

/< &esear,h S,ope/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////4

/7=ustifi,ation of Study//////////////////////////////////////////////////////////////////////////////////////////////////////////////;

/> -imitations of Study/////////////////////////////////////////////////////////////////////////////////////////////////////////////;

+hapter 5 6///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

6/3/ Study ?ariab!e @ -o#isti,s 8erforma///////////////////////////////////////////////////////////////////////////////////>

6/3/6 ndependent ?ariab!e ua!ity of port infrastru,ture////////////////////////////////////////////////////9

6/3/3 ndependent ?ariab!e 6 &oad density///////////////////////////////////////////////////////////////////////////

6


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6/3/4 ndependent ?ariab!e 3 Transport ser0i,es///////////////////////////////////////////////////////////////////

6/3/; ndependent ?ariab!e 4 -ead time to eCport/////////////////////////////////////////////////////////////////6

6/4 +on,eptua! frame1ork///////////////////////////////////////////////////////////////////////////////////////////////////////3

6/; &esear,h $ode!//////////////////////////////////////////////////////////////////////////////////////////////////////////////////4

+hapter 5 3/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////;

3/ $ethodo!o#y//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////eCamines 1hi,h fa,tors inf!uen,e the "ua!ity of port

infrastru,ture of Spain/ Statisti,a! data of 94 ,ompanies has been used in this resear,h/ a,tor

ana!ysis2 t tests and eCp!oratory fa,tor ana!ysis are used/ n this resear,h three 0ariab!es are used

in this study in,!ude "ua!ity of port infrastru,ture2 te,hno!o#y system on port and the on time

re!iabi!ity of ship arri0a! and departure/ &esu!t ,on,!uded that a!! the 3 0ariab!es are positi0e

,orre!ated to the "ua!ity of port infrastru,ture/ :e su##ests that po!i,y makers and the seaport

authorities 1ou!d use different te,hno!o#ies for enhan,in# the "ua!ity of port and makin# the

effi,ient ,ustom ,!earan,e 1ith that a!so in,rease the on time ship arri0a! and departure/

/'/'( !ndependent 1ariable / 3 oad density

Bose (63) aspe,ts 1hi,h inf!uen,e road density and effi,ien,y in nationa! hi#h1ays

1ith the he!p of statisti,a! data from (9;>@997)/ They used ordinary !east s"uare and re#ression

te,hni"ue/ The 0ariab!es are #ro1th in road density2 #ro1th in hi#h1ay density and effi,ien,y of

road density/ &esu!ts ,on,!ude that measures the road density a,ross the years ha0e been

impro0ed in effi,ient manner but further impro0ement re#ardin# #ro1th in road density of

nationa! hi#h1ay in mu,h needed in se0era! states of ndia/ :e su##ests that in,reased the

hi#h1ay road density2 #ro1th of road density and "ua!ity of the roads be,ause "ua!ity and

#ro1th of road density p!ay a maor part in su,,essfu! ,ontro! strate#y in road transport/

+ropper2 Friffiths L $ani 999inspe,ts the fa,tor of road density and popu!ation

pressure in a ,ountry 1ith the he!p of statisti, data from (979)/ They used e,onometri,2

re#ression te,hni"ue and ordinary !east s"uare te,hni"ue in this study/ The 0ariab!es they

,onsidered in this study are road density2 A#ri,u!ture househo!d density2 ,!eared !and and the


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To Analyse What Factors Affecting Logistic Performance:

A global upply !hain Perspecti"e

road net1ork/ &esu!ts ,on,!ude that the profitabi!ity for reimbursement the territory for

a#ri,u!ture prob!em depend on 0arious physi,a! fa,tors to pro0ide some natura! prote,tions from

forest/ They su##est that in,reased the road density ,o0ers the forest and ,!earin# the !and

be,ause the pressures of popu!ation in,reases so need to bui!d the hu#e road infrastru,ture by

redu,in# the forest and ,!earin# the !and/

!im1en#u2 unes2 :eadey L .ou 63s,rutinize the inf!uen,e of road infrastru,ture in

de0e!opin# ,ountries by usin# the dataset of year 66/ Te,hni"ues are used in this resear,h are

"uantitati0e te,hni"ues su,h as ordinary !east s"uare re#ression ('-S) and ,orre!ation/ The

0ariab!es are used in this study are roads2 different !anes of roads2 road infrastru,ture2 pa0ed road2

size of the roads and road density/ &esu!ts ,on,!uded that the re!ationships bet1een the 0ariab!es

are si#nifi,ant/ They ,on,!uded that the tota!numbers of !anes are important for the effi,ient road

infrastru,ture/ They su##est that a!! the po!i,y makers and de,ision makers of road infrastru,ture

shou!d ,reate mu!tip!e !anes for hea0y ,ontainerized traffi, from that effi,ien,y of !o#isti,

performan,e of a ,ountry shou!d in,rease and a!so speed up the !o#isti, performan,e of the

,ountry/

/'/'4 !ndependent 1ariable ( 3 Transport services:

Tur0ey and $ohrin# (97;) empiri,a!!y identify the mar#ina! ,ost pri,in# of s,hedu!ed

transport ser0i,es/ n this study ,ointe#ration and ,ross se,tiona! te,hni"ue are used/ The

0ariab!es are ,onsider for this study are tota! transport ,ost2 mar#ina! ,ost2 users ,ost and

produ,er ,ost/ &esu!ts ,on,!ude that tota! ,ost of transport ser0i,es is ,a!,u!ated by the mar#ina!

,ost and the fares shou!d be set be!o1 the mar#ina! pri,e of produ,er ,ost/ They su##est that

#o0ernment subsidies shou!d be in,reases on !o,a! transport ser0i,es 1hether the ,onsumer

in,ome !e0e! is risin#/


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A global upply !hain Perspecti"e6

:ibbs (97) empiri,a!!y identify the maintainin# transport ser0i,es in rura! areas/ n this

study 'rdinary !east s"uare and ,ross se,tiona! te,hni"ue has been used/ The 0ariab!es are

,onsidered for this study are roads2 infrastru,ture and mode of transport in rura! areas/ &esu!ts

,on,!ude that the e!e,ted representati0es of #o0ernment offi,ers shou!d take ,are of

infrastru,ture of roads in the rura! areas and en,oura#e the !ife of rura! areas peop!es 1here they

,an enoy ea,h ne,essity of transport ser0i,es/ :e Su##est that the main aim of #o0ernment

offi,ia!s of rura! areas to prepare a po!i,y 1here they en,oura#e the f!eCibi!ity of the transport

ser0i,es in the rura! areas/

Kidokoro (66) empiri,a!!y identify the effe,ts of pri,e re#u!ation in ,ontra,tin# out

transport ser0i,es/ n this study used non@parametri, statisti,a! and e,onometri, te,hni"ues/ The

0ariab!es for this study are pri,e2 "ua!ity ser0i,es2 tota! ,onsumer surp!us and transport ,ompany

profits/ &esu!ts ,on,!ude that the !o,a! #o0ernment #ot the 0arious information re#ardin# the

pri,e so they maCimize their profits and net ,onsumer surp!us than the pri0ate transport firms/ :e

su##est that both the #o0ernment and pri0ate transport ha0e #ot different types of pri,in#

strate#ies but the !o,a! #o0ernment #ot the information about the pri0ate firm pri,in# strate#ies

so #o0ernment ,an redu,e the pri,es so that pri0ate firm transport e0en do not a,hie0e a break

e0en ,ost/

/'/'5 !ndependent 1ariable 4 3 Lead time to e6port:

Apte and ?is1anathan (6) eCamine the si#nifi,an,e of redu,in# the !ead time/ n this

resear,h %&8 (enterprise resour,e p!annin#) and $&8 (materia! re"uirement p!annin#) te,hni"ue

has been used/ The key 0ariab!es are used in this resear,h in,!udes the redu,in# the !ead time and

impro0es the effi,ien,y of o0era!! pro,ess/ &esu!ts ,on,!ude that redu,in# the !ead time 1ou!d

#i0e the f!eCibi!ity and responsi0e distribution net1ork/ They su##est that redu,in# the !ead time


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that 1ou!d in,rease the ,ustomer satisfa,tion2 in,rease the f!eCibi!ity of the pro,ess and a!so

minimizes the in0entory/

+han#2 Zhan#L -i 6 eCamine the affe,tin# fa,tor of !ead time of ,hina/ Statisti, data

had been used from period 64@6>/ Statisti, and e,onometri, te,hni"ue had been used in this

study/ our 0ariab!es are used in this study in,!ude !ead time to eCport2 transport infrastru,ture2

manufa,turin# and number of ports in,!udin# dry and sea ports/ &esu!ts ,on,!ude that a!! the

0ariab!es are positi0e!y ,orre!ated to the redu,in# !ead time/ They su##est that transport

infrastru,ture authorities and the manufa,turer shou!d ,raftin# the strate#ies in a 1ay that

minimizes the !ead time from the in,reases the ,ustomer satisfa,tion and a!so in,rease the FD8

of the ,ountry/

*ordas2 8ina!iL Frosso 6) road density (Bose 632 +ropper2 Friffiths L

$ani 999 L !im1en#u2 unes2 :eadey L .ou63) and !ead time to eCport (Apte L

?is1anathan 662 +han#2 Zhan# L -i 6 L *ordas2 8ina!i L Frosso 6


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/'4 esearch Model:

The mode! proe,ted for the study is as fo!!o1s

Figure /'$: a,tors affe,tin# -o#isti, 8erforman,e

Sour,e: AuthorIs %stimation

&oad Density

(&D)Transport Ser0i,es

(TS)

-ead Time %Cport(-T%)

ua!ity of 8ort nfrastru,ture('8)


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A global upply !hain Perspecti"e;

Chapter # (

Methodology


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A global upply !hain Perspecti"eescriptive &tatistics

n des,ripti0e stats sho1s the statisti,a! Summarization of a!! the 0ariab!es that are !inked

in this study 1hi,h ha0e been seen in be!o1 tab!es 1ith the interpretation of the data/

4'/'$ Logistic Performance !nde6:

Table ?o 4'/'$: >escriptive &tatistics: Logistic Performance !nde6


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Fermany and *ether!ands i/e/ area of 4/2 so this is ,!ear!y sho1s that most of the ,ountries ha0e

#ood o0era!! !o#isti, performan,e indeC/ =amai,a2 8ara#uay and Armenia ha0e the 1orst !o#isti,

performan,e ratin# in this study i/e/ in the re#ion of 6/4 for both se!e,ted years 1hi,h is not #ood

be,ause the a0era#e ratin# of this #roup is 3/;/ So these ,ountries needs positi0e ,han#e in there

infrastru,ture system of the ,ountry to impro0e the o0era!! !o#isti, performan,e/

4'/'/ Lead Time To 06port:

Table ?o 4'/'/: >escriptive &tatistics: Lead Time 06port


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A global upply !hain Perspecti"e6;

paper 1ork to faster eCport/ $ore do,uments pro,ess and outdated pro,edure in the port 1ou!d

in,rease the !ead time to eCport and redu,es the ratin# as 1e!!/ A,,ordin# to the abo0e tab!e

=amai,a performan,e is par be!o1 amon# the se!e,ted ,ountries as it takes days of eCport

somethin# in 6 and the situation more 1orse in 66 and it takes 4 days of eCport somethin#

1hi,h is not a,,eptab!e to in,rease the FD8 of the ,ountry and to bad to ,ompetin# in the 1or!d

!eadin# e,onomy ,ountries/

4'/'( )uality of Port !nfrastructure:

Table ?o 4'/'(: >escriptive &tatistics: )uality +f Port !nfrastructure > 4/> Q (@/63) (TS) RRRRR///////////////////////////////////%"uation 4

@ear /$/

-8 P 3/ Q (@/


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A global upply !hain Perspecti"e3>

4.6Coefficients Analysis

The ,oeffi,ient ana!yses for a!! the mode!s are #i0en be!o1/

Coefficients

/$

Coefficient

/$/Comment

-ead Time %Cport @/9;63> @// 'n the other hand !ead time eCport has a ,oeffi,ient of @/


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/336


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Chapter # 5

Conclusion and

ecommendations


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5.Conclusion and ecommendations

5.Conclusion

As ar#ued in the pre0ious ,hapters that the key purpose of this 1ho!e resear,h is to boost and

de0e!op the o0era!! !o#isti, performan,e of the ,ountry by in0esti#ate the re!ationship of !o#isti,

performan,e 1ith other re!ated 0ariab!es to the !o#isti,s su,h as "ua!ity of port infrastru,ture2

road density2 transport ser0i,es and !ead time to eCport/ 'rdinary !east s"uare te,hni"ue has been

used in this study to ,onfirm the re!ationship bet1een !o#isti, performan,e and a!! the other

se!e,ted 0ariab!es/ A,,ordin# to the resu!ts "ua!ity of port infrastru,ture and road density has a

positi0e stron# re!ationship 1ith the !o#isti, performan,e 1hi!e transport ser0i,es has a s!i#ht!y

1eak re!ationship 1ith the !o#isti, performan,e 1here as !ead time to eCport has a s!i#ht!y 1eak

re!ationship and insi#nifi,ant re!ationship 1ith the !o#isti, performan,e in the fo!!o1in# year

66/So a!! these independent 0ariab!es are e"ua!!y important to boost and impro0e the any

,ountryGs !o#isti, performan,e/

5.2

ecommendations

After a robust ana!ysis of data from 0arious dimensions L perspe,ti0es2 fo,usin# on

beta ,oeffi,ients and positin# the hypothesis resu!ts2 fo!!o1in# are re,ommendation points of this

study based on resu!ts

t is re,ommended that the po!i,y maker shou!d fo,us on impro0in# the "ua!ity of port

infrastru,ture2 road infrastru,ture and po!i,y maker shou!d re0amp a!! the obso!ete

pro,ess of !o#isti,s so that the o0era!! !o#isti, performan,e shou!d impro0e and he!p to

#ro1 the ,ountryGs e,onomy/

urther it is re,ommended that the !o#isti, professiona!s ensure that the ,ontinuous

impro0ement is re"uired to attain the #oa!s and ,reate a si#nifi,ant impa,t on ,ountryGs


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e,onomy/

$oreo0er2 =amai,a2 8ara#uay and 8eru shou!d impro0e !o#isti,s ser0i,es of their

,ountries by impro0in# f!o1 of order pro,essin#2 impro0in# !ead time by de!i0ery order

on time2 e!iminate paper 1ork pro,ess and introdu,e ne1 te,hno!o#y/ Armenia2 +o!umbia and Serbia shou!d impro0e the "ua!ity of port infrastru,ture of their

,ountry by insta!!in# !atest ma,hinery at the port and or#anize the 0esse! s,hedu!e

proper!y/

As 1e seen in the abo0e des,ripti0e stats that ,ountries !ike Fermany and *ether!ands are

eC,eptiona!!y #ood in a!! their !o#isti,s pro,ess a,ti0ities !ike for instan,e Fermany

,onsidered the %urope top hub in !o#isti,s be,ause of their 1or!d ,!ass !o#isti,a!

infrastru,ture and thatIs 1hy a!! the bi# #iant firms ,hoose Fermany for their %uropean

head"uarters and as 1e!! as *ether!ands ,onsidered %uropeGs !ar#est port and fourth

bi##est port in 1or!d1ide and *ether!ands ust behind Fermany in terms of Eor!d bank

ratin# in,!ude ,ustom performan,e2 !o#isti, infrastru,ture and time!iness of ,onsi#nment/

So the po!i,y makers shou!d set these t1o ,ountries as a ben,hmark for makin# future

po!i,ies of their ,ountry/

5.3Future &tudies

As dis,ussed in the pre0ious ,hapters that the #rounds on 1hi,h ,ountries ha0e been

se!e,ted on their superior FD8 rankin# so it mi#ht be possib!e that the same study 1ou!d be

,ondu,ted on the !o1 FD8 ,ountries rankin# to ,he,k the impa,t of these 0ariab!es on the

-o#isti, performan,e/

$oreo0er in future time series or pane! re#ression te,hni"ue shou!d a!so be done by usin#

same 0ariab!es 1hi,h 1i!! he!pfu! to obser0e the trend and to fore,ast the study 0ariab!e/

urthermore2 in future "ua!itati0e resear,h shou!d a!so be ,ondu,ted for the same 0ariab!e to

predi,t the study 0ariab!e/


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%ibliography


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eferences

Alipour, H. R., Khorshidi, G. R., Naghdi, A., Alizadeh, H., Honarmand, H.,

&Shabani, Z. (!"#$. %he theor o' constraints a comparati)e

assessment. Far east journal of Psychology & Business,"#("$

Abe, K., & *ilson, +. S. (!!$. *eathering the storm in)esting in port

in'rastructure to lo-er trade costs in ast Asia. World Bank Policy Research

Working Paper Series, Vol.

Apte, /. 0., &1is-anathan, S. (!!$. Strategic and technological

inno)ations in suppl chain management. International journal of

manufacturing technology and management, (#$, 2345.

6ose, S. (!!#$. Road 7ensit, Resource 8ntensit and 9cienc in National

High-as o' 8ndia ":54";. !conomic and Political Weekly, :2"4:;".


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A global upply !hain Perspecti"e4;

Hausman, *.H., ?ee, ?.?. and Subramanian, /., !!:, EGlobal logistics

ser)ices, suppl chain metrics and bilateral trade patternsF, 0imeo,

*orld 6an, ctober.

Hibbs, +. (";!$ %ransport 'or =assengers. 8nstitute o' conomic A@airs

Hobart =aper No. #. Second edition, ";".

httpIIdata.-orldban.orgIindicator

httpsII---.-to.orgIenglishItratopJeIde)elJeIa3tJeIglobalJre)ie-"#progJeItr

ansportJandJlogistics.pd'.

+ansson, +an . (";$ 0arginal . (!!$. %he e@ects o' regulator re'orm on Bualit."ournal of the

"apanese and international economies, #3("$, "#:4"32.

Kleinbaum, 7. G., Kupper, ?. ?., & 0orgenstern, H. ("5$. !pidemiologic

research4 principles and 5uantitati.e methods. +ohn *ile & Sons.

0ustra, +. (!""$.


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Appendi6


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APP0?>!H

The ,ountries that are in,!uded in this study are se!e,ted on the basis of their hi#her FD8

rankin#s/ o!!o1in# be!o1 are the !ist of ,ountries that are in,!uded/

Country

@ea

r

@ear /$ P in

Trillion=

LP! T& )+P! >

LT

0

Gnited &tates

/$

4/99 3/>/>>


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6

Austria

/$

/4> 3/>9

34/ 3/

>enmark

/$

/334 3/>;

43/37

36/;;

9 3/4 7

Malaysia

/$

/6>> 3/44

34/46

;/7 43//37

;/4 >/3

Peru

/$

/77 6/94

3>/74

> 3/; 9/73 6/3

Lu6embourg

/$

/;9 3/>6

4/794

;/6 /6 /7

&ri Lanka

/$

/;9 6/7;

7 /73

&erbia

/$

/4< 6/>

67/4

; 6/7 ;/> 3

Paraguay

/$

/64 6/4>

>

.amaica

/$

/4 6/46

43/97

4 ;/3 6/6>


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?amibia

/$

/6 6/


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A global upply !hain Perspecti"e;6

Countries @ear LP! T& )+P! > LT0

Armenia 66 6/;< 3>/69 3 69 ;/7 4/ 6

+hina 66 3/;6 3/44 4/4 46/77 3

+o!ombia 66 6/>7 33//7> 4

Denmark 66 4/6 36/; ;/> 7/;7 6

ran,e 66 3/>; 6 4Korea2 &ep/ 66 3/7 6>/;6 ;/; 6 ;/99 ;/; 6/> /;

$a!aysia 66 3/49 3/> ;/; 4 3

8ara#uay 66 6/4> /37 3/< 7/97 />

8eru 66 6/94 3>/;9 3/; /;

atar 66 3/36 4/3< ;/6 7>/ 67/;7 6/7 49/;6 /9

Sin#apore 66 4/3 69/7< 4>/;< 6

South Afri,a 66 3/7 6

nited Kin#dom 66 3/9 >/37 ;/> 76/67 3

nited States 66 3/93 6/6> ;/<


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Table ?o 4'/'$: >escriptive &tatistics: Logistic Performance !nde6


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Netherlands Netherlands

7enmar German

Borst

Serbia 6razil

Armenia Serbia

6razil Armenia

Table ?o 4'/'4: >escriptive &tatistics: oad >ensity escriptive &tats Bith espect To Pakistan


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A global upply !hain Perspecti"e;;

LP! LT0 LT! T& > )+P!

8akistan 6 6/>3 6/3 /;9 ;/6> 36/94 4/

8akistan 66 6/>3 3 ; 39/ 36/9> 4/4

/$ Pre2regression output 3 />66

+L& egression +utput


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A global upply !hain Perspecti"e;> @/


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.ears 6 66

?ariab!es+oeffi,ien

t8rob ?a!ue

+oeffi,ien

t8rob ?a!ue

Transport Ser0i,es @/63 /3 @/6;> /

+ 4/6> / 4/6;6 /

&@S"uare /3>64 /46>6

Adusted &@S"uare /3

@Statisti,s 7/33> 6/973

Sour,e AuthorGs %stimate

zohaib aziz shaikh 9374 final thesis

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