The influence of logistics barriers on lead times and service levels in Slovenia

Many companies today are shifting towards export activities in order to increase their profit‐base and ensure the distribution of market risk to various environments. For penetrating new markets, management of logistics barriers is crucial to ensure that operations run smoothly, lead times are optimised and service levels maximised. This paper explores logistics barriers' influence on logistics lead times, service levels and trust among partners in a widespread supply chain. The results of a survey among Slovenian companies were statistically analysed to explore the influence of logistics barriers on company operations. The analysis results were further confirmed with a simulation of a simple supply chain. The main finding is that for effective management of logistics barriers, it is crucial that the lead time gap is closed by reducing logistics lead times and extending customers' order cycles through more effectively forecasting demand and identifying logistics barriers that affect the total order time.