Executive Briefings

Logistics Costs Jump 11% in 2006

Another unhappy statistic for supply chain execs comes from the 18th Annual State of Logistics Report, published by the Council of Supply Chain Management Professionals. Costs rose dramatically in 2006 to $1.305tr, a $130bn increase over 2005. The rise was fueled primarily by rising energy costs, interest rates and inventory carrying costs. U.S. business logistics now accounts for 9.9 percent of the Gross Domestic Product. Logistics' shared of the GDP has gone up for three consecutive years.
Transportation costs, spurred by rising fuel costs, rose 9.4 percent in 2006 and represent the largest component of logistics cots. Inventory carrying costs increased even faster: 13.5 percent.
The complete report is available online exclusively to CSCMP members.
http://www.cscmp.org

Another unhappy statistic for supply chain execs comes from the 18th Annual State of Logistics Report, published by the Council of Supply Chain Management Professionals. Costs rose dramatically in 2006 to $1.305tr, a $130bn increase over 2005. The rise was fueled primarily by rising energy costs, interest rates and inventory carrying costs. U.S. business logistics now accounts for 9.9 percent of the Gross Domestic Product. Logistics' shared of the GDP has gone up for three consecutive years.
Transportation costs, spurred by rising fuel costs, rose 9.4 percent in 2006 and represent the largest component of logistics cots. Inventory carrying costs increased even faster: 13.5 percent.
The complete report is available online exclusively to CSCMP members.
http://www.cscmp.org