The specialists of the World Bank evaluate the logistics industry in the countries of the world with the LPI, or the logistics performance index. It analyzes the efficiency of the process, the quality of trade and transport-related infrastructure, the ease of arranging shipments at competitive prices, as well as the quality and competence of logistics services, the ability to track and qualify cargoes, the frequency of receiving cargoes within the planned limits or estimated delivery times. According to these components, the country's competitiveness is largely determined by the logistics system. Logistics potential is a system of components that characterizes the capabilities of the investigated object and can be used to justify strategic directions of development. Despite the certain subjectivity of the research, we think that by factor analysis of logistics index indicators, certain conclusions can be made and the main problems of logistics development in the country can be assessed. In the factor analysis, the method of chain insertion, deterministic functional connection (additive model) is used. Factor analysis revealed the factors that need further diagnosis in order to increase competitiveness. Keywords: logistics, index, indicators, factors, business.