Measuring Improvements in the Movement of Highway and Intermodal Freight
REPORT: Demand-based Transportation Planning, Policy, and Performance, an unpublished paper under journal review
AUTHORS: Edward A. Morash, Graduate School of Management, Michigan State University
DATE: undated (1999)
The paper is largely concerned with the notion that public policy should be based, in part, on the effective functioning of the supply chain; put another way, that good private-sector logistics should be a goal of public policy. Development of performance measures is not the main purpose of the work.
PERFORMANCE MEASURES PRESENTED:
The performance measures offered are related to the private-sector supply chain.
Transportation cost (including loss and damage and costs of service failures)
Productivity of transportation labor and equipment
Asset management (inventory levels)
Customer service (e.g., on-time delivery)
Logistical quality (e.g., damage frequency)
These are legitimate measures of effectiveness in supply-chain management, and the author is right to point out that public policy can affect these measures. The difficulty would come in trying to isolate the effects of highway-system performance on these indicators. That would not be easy to do.