A logistics and supply chain management approach to port performance measurement

TLDR

Ports are increasingly viewed as logistics hubs, yet standardized performance metrics for them are lacking, and a logistics‑centric cost‑trade‑off analysis could guide efficiency improvements. This study aims to demonstrate that applying a logistics and supply chain management perspective enables the development of a meaningful port performance framework. The proposed framework was evaluated through a survey of port managers and international experts.

Abstract

Although there is widespread recognition of the potential of ports as logistics centres, widely accepted performance measurements for such centres have yet to be developed. The essence of logistics and supply chain management is an integrative approach to the interaction of different processes and functions within a firm extended to a network of organizations for the purpose of cost reduction and customer satisfaction []. The logistics approach often adopts a cost trade-off analysis between functions, processes and even supply chains []. This approach could be beneficial to port efficiency by directing port strategy towards relevant value-added logistics activities. This paper seeks to show that through conceptualizing ports from a logistics and supply chain management approach, it is possible to suggest a relevant framework of port performance. A proposed framework is tested in a survey of port managers and other international experts.