SCDigest editorial staff
Logistics Costs Up or Down in the Past Year?
The results broke out this way, by the way companies measure logistics costs:
Absolute Logistics Costs:
- 74% said logistics costs were up
- 26% said logistics costs were down
Logistics Costs as a percent of sales:
- 62% said costs were up
- 38% said costs were down
Logically, this was perhaps the most industry-specific area we measured, as product price is often the key driver of this metric. Virtually 100% of food and beverage and wholesale distributors, for example, said their logistics costs as a percent of sales were higher in 2005. Conversely, a high percentage of respondents in the chemical and the 3PL industries said their costs as a percent of sales declined. The chemicals one makes sense, as prices in general rose heavily in that sector. The 3PL one is less clear – see more comment under the 3PL break out section.
Logistics Cost Per Weight or Unit:
- 71% said costs were up
- 29% said costs were down.
Noted one respondent: “How can anyone say logistics costs are going down when the cost of diesel has risen almost $1 a gallon in the past year. The cost of rail has increased 7-10% across the board and the major air carriers have implemented fuel surcharges. There is no way!”
Other sections of the Logistics Cost Study:
Beginning of Story
What's Included in Logistics Costs Measures?
Logistics Costs Up or Down in 2005?
Performance by Industry - General
Apparel Industry Logistics Costs
Automotive Industry Logistics Costs
Chemicals Industry Logistics Costs
Consumer Durables Industry Logistics Costs
Consumer Packaged Goods Industry Logistics Costs
Consumer Goods Other Industry Logistics Costs
Food/Beverage Industry Logistics Costs
Furniture/Home Furnishings Industry Logistics Costs
High Tech Industry Logistics Costs
Paper/Building Products Industry Logistics Costs
Pharmaceutical/Medical Products Industry Logistics Costs
Retail Industry Logistics Costs
Wholesale Distribution Industry Logistics Costs
3PL Industry Logistics Costs
Other Industry Logistics Costs
Level of Cost Increase/Decrease
Do you have additional comments on the our logistics costs study? Let us know your thoughts.