Macrologistic performance and logistics commitments in sales contracts in international supply chains

Abstract

Purpose

This study aims to illuminate the relationship between the logistic performance indexes (LPIs) of trade countries and sharing obligations related to logistics services in delivery among parties in international sales contracts.

Design/methodology/approach

A comprehensive one-year database of Serbian international trade flows is used. The LPIs of 148 countries are related to the Incoterms^® rules in international sales contracts that designate the division of obligations between exporters and importers for moving goods. Empirical data were subjected to statistical analysis, where nonparametric correlation and inferential methods were applied. The differences between countries with the highest and lowest LPIs were also examined.

Findings

LPIs positively correlate with logistics commitments in exports and imports. Their impact on the choice of Incoterms^® rules differs among the groups of trade terms. Waterway and D-terms are the most sensitive. LPIs of trade countries clearly impact “emission” and “attraction” of the most extended sellers' delivery obligation “packages,” expressed in D rules.

Research limitations/implications

The empirical data are limited to a single country. Further research must explore the relative impact of macrologistic factors on exporters and importers' logistics commitments for building better decision-making support tools.

Practical implications

The results may support suppliers and buyers in sharing their experiences on Incoterms^® practice and encourage more rational than intuitive decisions.

Originality/value

This is the first empirical study to quantitatively evidence the sensitivity of groups of Incoterms^® rules on the macrologistic environment of trade countries.

Citation

Stojanović, Đ.M. and Ivetić, J. (2020), "Macrologistic performance and logistics commitments in sales contracts in international supply chains", The International Journal of Logistics Management, Vol. 31 No. 1, pp. 59-76. https://doi.org/10.1108/IJLM-12-2018-0323