SCDigest editorial staff

High Tech Industry Logistics Costs

This category, which had 17 total respondents, surprised us a little, because many technology companies face higher logistics costs as a percent of sales due to the fact that selling prices per unit in this segment tend to fall consistently, rather than rise. In fact, in the past, with high prices, many tech companies didn’t focus that strongly on logistics costs - service and on-time delivery were the bigger issues.

However, as the cost of PCs and other gear has dropped substantially, logistics costs have made a more noticeable line-item as a cost percentage in the total company budget, and many tech companies are looking hard at reducing logistics costs. Perhaps it is this focus that led to 40% of our respondents which use logistics cost as a percent of sales as the primary measure, and 40% who use cost per weight or unit as the primary measure, to report lower logistics costs in 2005 in our survey.

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.