Study On The Comprehensive Performance Evaluation System Of Logistics Enterprise Based On DEA And SFA

The comprehensive, correct and timely performance evaluation of the logistics enterprises plays its key role in ensuring the efficient operation and in achieving the goals and values set by companies. Performance evaluation will help us to analyze the problems that exist on our operational process and help us to review the lessons and the experience we obtained from past, thus guiding us appropriately to a continuous and healthy logistics. Based on the above, this paper makes a useful research on logistics performance evaluationThe paper firstly establishes the basic evaluating index system for performance appraisal. The system takes consideration of five key indices that comprehensively reflect the actual operation of the enterprise, including the performance on transportation, warehousing, information, corporate finance as well as customer service. The author made the comprehensive evaluation on 12 subsidiaries subordinated to a large parent multinational logistics enterprise with two different analytic models: Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). The paper then compares and analyzes the results of the two methods, to provide the reference tfor enhancing the operating efficiency.Because the logistics performance evaluation is a typical issue involving the multiple indices, many factors must be considered. The multiple indexes bring us tow problems, one is the complexity of analysis and another is the multilateral correlation among the multiple indices. Before using DEA and SFA method, the author adopts Principal Component Analysis (PCA) to reduce the number of indices so as to solve the above problems. This makes the approach of comprehensive performance evaluation being more scientific. Through computation and analyzing, we find out that the correlation of the results from two methods is quite high. The influences of technical efficiency on the company factors from two methods are basically kept with the same direction. This also further clarifies the key factors affecting the overall performance and gives the direction to improve.This research not only reaches the goal of appraising the comprehensive efficiency of the logistics enterprises, but also proves that it is scientific and rational to evaluate the enterprises with SFA and DEA on the basis of PCA. This paper offers a reference for other enterprises.