State of Logistics Report 2011

Martijn Lofvers — Sat, 18 Jun 2011 08:31:59 +0000

The cost of the U.S. business logistics system jumped up 10.4 percent in 2010, making up more than half of last year’s decline. Business logistics costs rose to $1.2 trillion, an increase of $114 billion from 2009. This puts 2010 about on par with 2005, and still well below the pre-recession years. In 2010, logistics costs as a percent of the nominal Gross Domestic Product (GDP) climbed back up to 8.3 percent.

Both major components of the logistics cost model increased by slightly over 10 percent in 2010. Inventory carrying costs increased 10.3 percent in 2010. The increase in carrying costs was due to higher costs for taxes, obsolescence, depreciation, and insurance, which were offset by a further drop in the inventory carrying rate and warehousing costs. Transportation costs were up 10.3 percent from 2009 levels. Trucking, which comprises 78 percent of the transportation component, continued to lag behind the performance of other modes, rising only 9.3 percent compared to an average of 15.4 percent for the other modes combined.

2010 was certainly a better year than 2009, but did not turn out to be all we had hoped it would be. The recovery from the Great Recession has proven to be more elusive and prolonged than any other in our history. The slow growth presented another year of challenges for the logistics industry. Volumes firmed up early in the year, but dropped off in the second half. Demand for capacity began to equalize with available capacity in many sectors, but rates continued to be constrained. Inventories began to climb again and retailers pulled back on their ordering, because spending did not expand as expected. The economy began to falter in the second half of the year as the contribution from the various stimulus packages put in place to jumpstart and fuel the first year of the recovery faded. Or to put it another way, “The recovery remains distinctly subpar,” according to New York Federal Reserve Bank President William
Dudley.

The Council of Supply Chain Management Professionals (CSCMP) released the 22nd Annual “State of Logistics Report” presented by Penske Logistics on June 15, 2011 at the National Press Club in Washington, DC.

The report was delivered by author Rosalyn Wilson, with additional commentary provided by a panel of industry leaders representing various areas within the supply chain. The “State of Logistics Report” is widely used by supply chain management and logistics professionals and organizations as the premier benchmark for US logistics activity.

CSCMP Europe 2011 Conference

Judith Wanjala — Thu, 10 Feb 2011 11:57:49 +0000

June 8 – Research Seminar

June 9 – June 10, Conference

Location: Barcelona, Spain

Organiser: CSCMP

Mastering Financial Strategies to Drive Supply Chain Value

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In today’s highly competitive global marketplace, supply chain leaders need to understand how financial strategies and decisions can significantly impact their supply chains’ performance, potentially determining the success—or failure—of their organizations. Learning how to develop a sound financial strategy and apply it to your entire supply chain operation will be mission critical if your company intends to compete on a global scale.

Join supply chain management professionals from around the world in Barcelona to discover the key financial principles that influence and shape your supply chain. You’ll also learn new strategies for entering emerging markets, the role that business culture plays in forging collaborative relationships with suppliers and customers, and how information technology drives supply chain efficiency.

Mastering financial best practices and understanding how they impact your organization’s supply chain—and the ability to use them to your company’s advantage—will be the critical skill sets you will need to manage today’s unprecedented business challenges.

Keynote Speaker

Peter R. Williams, Vice President, Product Supply, Central and Eastern Europe, the Middle East and Africa (CEEMEA), Procter & Gamble

How to Win in Emerging Markets through Effective Supply Chain Management
Drawing upon his company’s experience in markets in Eastern Europe, the Middle East, and Africa, Peter Williams will talk about how we can make the difference between winning and losing through our approach to supply chain management. The scope of his presentation will include managing inbound flows, building local supply networks, and working in partnership with distributors and/or wholesalers.

Supply Chain Movement » CSCMP

State of Logistics Report 2011

CSCMP Europe 2011 Conference