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Home » More Than 30 Percent of Distribution Centers Fully Outsourced, Survey Finds

More Than 30 Percent of Distribution Centers Fully Outsourced, Survey Finds

July 24, 2012
Tompkins Supply Chain Consortium

"Supply Chain Consortium data indicates that while many companies continue to have their own DCs staffed by their own employees, there is an upward trend in the percentage of DC buildings and labor being outsourced in the past two years," says Bruce Tompkins, executive director of the consortium and author of the report. "This increase signifies that more organizations are considering outsourced DCs over ones that are company-owned and operated."

With responses from more than 100 companies across nine industries, the report reveals key metrics on annual logistics costs, DC operations, finished goods inventory turns, on-time delivery, transportation sourcing solutions and more.

Additional findings include:

• Inbound transportation metrics average 4.7% as a percentage of cost of goods sold and 2.4% as a percentage of net sales;

• Total annual logistics cost as a percentage of net sales ranges from 4.1% to 10.0%;

• On-time delivery by mode ranges from 79% for ocean to 97% for parcel and airfreight; and

• Most companies have more than half of their total logistics resources in distribution, customer service and transportation.

For more information, download the Supply Chain Metrics Report.

Source: Tompkins Supply Chain Consortium

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    KEYWORDS inventory control inventory management IT Logistics logistics IT solutions logistics management Logistics Outsourcing Pharmaceutical/Biotech Supply Chain Management supply chain management IT Technology Transportation & Distribution Transportation Management transportation management systems warehouse management systems Warehouse Management Warehouse Management Systems
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