SCDigest editorial staff

Summing it Up

In general, Supply Chain Digest’s Logistics Cost Survey strongly supports the view that 2005 was a challenging year for most companies in terms of logistics costs, as transportation costs in particular rose heavily, and customer service pressures also continued to rise.

The exception were found largely in those companies with look at logistics costs first as a percent of sales, and then were in industries that had strong pricing power in 2005. Those tended to be in the chemicals, metals and other commodity markets.

It was interesting to see the diversity of ways in which companies measure logistics costs, both in terms of primary measures used and what cost elements are included in those measures. Items like inventory carrying costs and customer service, which are often included in macro or academic studies of logistics costs, were in fact used by a distinct minority of our respondents.

Given the increasingly dynamic nature of both business strategies and the current cost environment, it is clear we need as an industry to continue to refine cost metrics in a way that makes them useful in the face of these changes in determining performance.

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

Summary

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