Evaluation of logistics companies using data envelopment analysis

Abstract

The main purpose of this paper is to develop appropriate construct to benchmark performances of logistics companies so that deficiencies can be highlighted and possible strategies can be evolved to improve the performances of the industry. The study applies data envelopment analysis (DEA) and Malmquist productivity index (MPI) to explore the operation performances of 55 Thai logistics companies from 2007 to 2010. The results point out the reasons for the inefficient Decision Making Units (DMUs) and provide improving directions for the inefficient companies accordingly. The study provides a simple but comprehensive methodology for improving logistics competences. By comparing the efficiency of logistics companies, this research contributes to find Thai logistics companies weaknesses in order to take effective measures to improve the their level of input and output so as to improve their logistics efficiency.