Efficiency Measures of Logistics Sector in Aizawl City, Mizoram: An Empirical Evidence

Abstract

Due to the differences in resource endowments and production capabilities of different regions, goods that people want to consume cannot always be produced where people want to consume them. Or these goods may not be accessible when people want to consume them. Efficiency measures the level to which logistics sectors utilise available resources. Efficiency is particularly important for logistics sector as the main purpose of their effort is to reduce time and cost of moving products from manufacturers to consumers using available infrastructures. The core components of key indicators of logistics sector in Aizawl City, Mizoram were analysed, such as cost efficiency, ease of obtaining official clearances, ease of payment, ease of reimbursement, infrastructure, use of information technology and innovations. The respondents then rank their logistics providers on the above parameters from 1 to 5; 1 being very low and 5 being very high. To measure the overall performance of logistics sector, product heads (industry-wise) were also selected in order to include wide and varied logistics provider. The product heads selected were clothing items, consumption goods and confectionaries, consumer durables, electronics, hardware items, medicine, raw materials for industries including semi finished products, vegetables, fish and meat, vehicles, spare parts and machineries. Sample size of 45 respondents was selected for this survey, 5 respondents for each item head or industry. And the results were then analyzed using mathematical tools like mean, average, percentage, etc. which was finally used to analyse the efficiency of logistics sector in Aizawl city, Mizoram.