SCDigest editorial staff

Logistics Costs Up or Down in the Past Year?

The results broke out this way, by the way companies measure logistics costs:

Absolute Logistics Costs:

• 74% said logistics costs were up
• 26% said logistics costs were down

Logistics Costs as a percent of sales:

• 62% said costs were up
• 38% said costs were down

Logically, this was perhaps the most industry-specific area we measured, as product price is often the key driver of this metric. Virtually 100% of food and beverage and wholesale distributors, for example, said their logistics costs as a percent of sales were higher in 2005. Conversely, a high percentage of respondents in the chemical and the 3PL industries said their costs as a percent of sales declined. The chemicals one makes sense, as prices in general rose heavily in that sector. The 3PL one is less clear – see more comment under the 3PL break out section.

Logistics Cost Per Weight or Unit:

• 71% said costs were up
• 29% said costs were down.

Noted one respondent: “How can anyone say logistics costs are going down when the cost of diesel has risen almost $1 a gallon in the past year.  The cost of rail has increased 7-10% across the board and the major air carriers have implemented fuel surcharges.  There is no way!”

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.