How Supply Chain Disruptions Affect Logistics Performance : A Mixed-method Analysis using LPI and industry Insights
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This study examines the impacts of supply chain disruptions on logistics performance in the context of increasing global instability caused by pandemics, geopolitical tensions, transport bottlenecks, and labor shortages. The research is designed to help gain insight into the impact of disruptions on logistics systems and warehouse operations, and to develop solutions to enhance resilience and continuity of operations.
The research method used was mixed method research which involved quantitative and qualitative analysis. In 2018 and 2023, a quantitative component was used, based on the Logistics Performance Index (LPI) data from the World Bank for 134 countries and GDP per capita data. To analyze the data, statistical methods such as descriptive statistics, paired samples t-test, correlation analysis and regression analysis were performed by SPSS. The qualitative part involved five semi-structured interviews with professionals from organisations working in the manufacturing, logistics, transport co-ordination and energy related fields from Finland.
The results indicate that the dimensions of logistics performance (infrastructure, logistics competence and tracking and tracing) have become better from 2018 to 2023. Timeliness, however, was somewhat low, suggesting more delays during the disruption period. The regression and correlation analysis showed that GDP per capita was still positively correlated with logistics performance, but its correlation decreased slightly in 2023. These were corroborated by qualitative results which included delays, insufficient materials, congestion, warehouse capacity issues, and coordination problems.
The study finds that although logistics capacity has a definite way to improve in the long-term, short-term performance is extremely sensitive to disruptions. The results underline the need of resilience measures like supplier diversification, forecasting, communication and digital visibility to boost warehouse and logistics performance.