SCDigest editorial staff

Retail Industry Logistics Costs

We were interested to find than none of our 28 total retail industry respondents (including both traditional retail and consumer direct) used absolute logistics costs as the primary measure, the only segment in our survey population to have that distinction.

About half of the retailers in the survey used costs as a percent of sales as the primary metric, and about half used cost per unit/case. Retailers, with their generally thin margins and distribution intensity, have always been among the most focused of any segment on logistics cost metrics. A number of retailers each year set goals to specifically reduce logistics costs as a percent of sales.

30% of our retail respondents that used logistics costs as a percent of sales we able to reduce those costs in 2005, and 33% of those using cost per unit/case were able to do so.

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.