The Efficiency and Productivity Analysis of Large Logistics Providers Services in Korea

ABSTRACTIn the fierce competition at the global logistics markets, Korean logistics providers were deemed more vulnerable than global logistics providers in terms of the quality and price competitiveness. To strengthen their competitiveness, logistics providers in Korea have focused on delivering integrated logistics services. In this regard, the Korean government has enacted the “Integrated Logistics Industry Certification Act” in 2006 to assist integrated logistics providers to offer logistics services based on their specialization and differentiation. It has been several years since the system was implemented, and the evaluation of the system implementation was necessary. Hence, in our study, we attempt to examine the efficiency and productivity of fourteen certified Korean logistics providers employing the DEA (Data Envelopment Analysis) method with a five-year panel data since the inception of the Act. Through our static and dynamic analyses, We found that Pantos Logistics and HYUNDAI Glovis are running their businesses at the highest level of efficiency and Hanjin Transportation was the most stable company in their logistics operation.