Executive Briefings

What Kind of Logistics Pain Are We in for in 2010?

Now that you have time to digest the statistic-filled 2008 State of Logistics report, it would be interesting to know your thoughts and strategies. The annual report, sponsored by CSCMP and compiled by Roslyn Wilson, was released back in June. It's chock-full of numbers documenting recession-driven declines in freight volumes and industry revenue -- declines that pushed business logistics costs down $49bn over 2007, to only 9.4 percent of GDP. Wilson thinks it likely that a 'U' shaped recovery will not really take hold until 2010, but when it does it will bring a different kind of pain. With 3,000 trucking companies out of business since last year and 7 percent of trucking capacity gone from the market, an upturn in business will create "immediate truck capacity problems," Wilson says. Clearly this is something companies need to be planning for now, but the question is how?

Your thoughts?

- Jean V. Murphy, SupplyChainBrain 

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Now that you have time to digest the statistic-filled 2008 State of Logistics report, it would be interesting to know your thoughts and strategies. The annual report, sponsored by CSCMP and compiled by Roslyn Wilson, was released back in June. It's chock-full of numbers documenting recession-driven declines in freight volumes and industry revenue -- declines that pushed business logistics costs down $49bn over 2007, to only 9.4 percent of GDP. Wilson thinks it likely that a 'U' shaped recovery will not really take hold until 2010, but when it does it will bring a different kind of pain. With 3,000 trucking companies out of business since last year and 7 percent of trucking capacity gone from the market, an upturn in business will create "immediate truck capacity problems," Wilson says. Clearly this is something companies need to be planning for now, but the question is how?

Your thoughts?

- Jean V. Murphy, SupplyChainBrain 

Comment on This Story