SCDigest editorial staff

What is Included in Logistics Cost Measures?

100% of respondents included warehouse/distribution costs and 98% outbound transportation costs in calculating costs of logistics (a handful said customers paid for all outbound freight).

55% included inbound transportation costs, while 45% did not. 29% included reverse logistics/returns costs, and perhaps surprisingly , only 32% of respondents included inventory carrying costs as part of total logistics costs. 21% included customer service costs, which are generally included when various pundits look at total logistics costs. There was a slight vertical orientation here, with customer service more likely to be included in the consumer packaged goods, food/beverage, 3PL and chemical segments, and uncommon in retail (as makes sense), wholesale distribution, and tech, to cite a few.

Among manufacturers, about one-third said they included “manufacturing logistics costs,” but we did not well define the term. It was meant to include costs into and out of production, as well as material storage and handling costs in the plant. What makes this aspect hard is that it’s hard to know who really is a manufacturer these days – a lot of companies which used to be are now sourcing overseas. But several respondents in comments wanted to make clear that plant transfer costs were included in logistics costs.

Other costs cited not in our specific list (just a handful at most each) included: import/export costs, freight audit expense, and packaging costs.

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

Summary

Do you have additional comments on the our logistics costs study? Let us know your thoughts.