Report to Management

This report provides an information related to the country Southeast Asia that is recommended
to locate the hub to be the major transshipment point of the firms products coming from the
United States within the region. The recommended country will be analyzed based on the
customs, quality of transport, and all the necessary logistic functions by using the most current
Logistics Performance Index as one of the pillars of the economic development provided by
the World Bank.

According to the Logistics Performance Index provided by the World Bank (2016), I think it
would be better for our company to select Singapore as the country in Southeast Asia to locate
the hub because this country is having the highest rank compared to any other Southeast Asia
countries which are in the fifth rank with score of 4.14 and 97.4% of highest performer. Then,
Singapores custom is 4.18 in which indicates that the country has high efficiency of the
customs clearance process that will help the company to have faster speed, simplicity, as well
as predictability formalities toward the legal process by border control agencies. Besides,
Singapore also has a high quality of the trade and the transport infrastructure with the score of
4.20 that means Singapore has a good quality of ports, information technology, as well as roads
and railroads. Then, the score of 3.96 for international shipment means that Singapore has an
easy of arranging for the competitive of price shipment to the markets that will benefit the
company by having lower cost of price shipment.

Furthermore, if we look into the logistic competence, tracking and tracing, as well as timeliness
factors, Singapore also leads compared to the other Southeast Asia countries. In term of logistic
competence, Singapore scoring 4.09 pretty high for the competencies and quality of the
logistics services that includes customs brokers as well as transport operators. This country
also has a high ability to track and trace the consignment when the products are already shipped
to the market as indicated by the score of 4.05 while the score of 4.40 for the timeliness which
indicates that the country has a very high to almost perfect ability to make sure that the product
are shipped within the schedule and expected delivery time for the consignee.
In a nutshell, it will be a great decision if the company choose Singapore to locate the new hub
in Southeast Asia due to the survey conducted by the World Bank to nearly 1.000 international
freight forwarder in the partnership with many academic and internationals institution that
results in Logistic Performance Index has shown that overall this country has a high score for
each six components measured.

Reference:
Arvis, Jean Francois, et al. The Logistics Performance Index and Its Indicators. 2016. 01
June 2017.
<http://lpi.worldbank.org/international/global?sort=asc&order=LPI%20Rank#datatabl
e>.