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
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