How to measure and monitor the transportation infrastructure contribution to logistics value of supply chains?

Abstract

When it comes to the competitiveness of companies, and of nations, the key role of the transportation infrastructure to increase logistics value of supply chains is clearly acknowledged. For example, the lack and/or inadequate transportation infrastructure is often mentioned as the most important challenge to companies located in emerging countries to successfully participate in global supply chains. In fact, many comparative indicators that measure countries’ competitiveness consider infrastructure of transportation as a key element. Nonetheless, most part of them give more credit either to the infrastructure density (km of roads per km2 of territory) or to the amount of resources invested in its development (millions of dollars) than to the its logistics effectiveness and resilience that may bring to the supply chain operations. Based on six indicators: i) Travel time (95 PCTL); ii) Average travel time; iii) Projected travel time; iv) Freight rates; v) Risk of accident; and vi) Carbon footprint, the objective of this paper is twofold. First, to propose a standardized measurement approach of logistics value provided by the transportation infrastructure to supply chains as a unified perspective. Second, to expose a proof of concept of an interactive digital map that is useful for public and private sectors when making decisions. The results obtained are useful for academics as well as for public and private decision makers. It delivers insights about the potential of data when looking to increase logistics performance of companies and regions. Finally, a proposal for future research is presented.