Recently, observing outcome of business is becoming an important issue in order for a company to be survived and flourished in rapidly changing environment. It is necessary to evaluate productivity and efficiency which is defined as ratio of the input and output so as to improve business performance.
This study identifies an inefficient hinterland logistics company, and evaluates the level of business performance of hinterland logistics companies by using DEA(Data Envelopment Analysis).
DEA has been used to measure the performance of organizations such as banks, insurance companies, universities and hospitals. Recently DEA has been widely used to evaluate efficiency in the port industry. This paper implements DEA by using number of employee, area, and invested capital as inputs and sales and container throughput as outputs for 20 hinterland logistics companies in Busan new port.
According to the results of CCR input-orientation and output-orientation model based on input and output data in 2010, it was found that the efficiency value of 7 hinterland logistics companies out of 20 companies were over 1.00.
However the results of BCC input-orientation and output-orientation model showed that 9 hinterland logistics companies' efficiency value were over 1.00.
As the result of this study, selection and concentration strategy is required to improve the efficiency of hinterland logistics companies by withdrawing the support to the inactive hinterland complex area. According to the results of this study, an institutional plan needs to be implemented to increase the efficiency of busan newport hinterland logistics companies.