SCDigest editorial staff

Food/Beverage Industry Logistics Costs

Very few food and beverage industry companies were able to reduce logistics costs in 2005 regardless of how they were measured. This segment had a strong number of total respondents – 21 – and of the 8 whose primary measure was cost as a percent of sales, none was able to reduce costs in 2005. Just a couple using absolute logistics costs or logistics costs by unit or weight were able to do so.

In a letter to Supply Chain Digest, Joe Lombardo of food manufacturer Nestle wrote regarding some other logistics benchmark data, as this one, showing some companies were reducing logistics costs: “Are logistics costs falling as a percent of sales because of sales price increases?  Some manufacturers seem to have limited pricing power due to energy and commodities price increases.”

Food, beverage and consumer packaged goods segments, along with wholesale distribution, seemed to have the least pricing power in 2005 while transportation and other logistics costs rose.

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

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