The total cost of logistics for organizations is growing as a percentage of sales due to increased complexity and a focus on controlling and managing costs. While logistics costs are typically cyclic, managing capacity and utilization has proven to be a differentiating factor for many of these organizations.
Speed is another essential factor in supply chain management. While real-time flow of information is shrinking cycle times and improving response to change, service providers need to be quick to identify market demands and refocus their efforts on more rapidly growing regions. At the same time, identifying issues in stable markets and resolving them before competitors take away market share is of paramount importance. Declining market share and revenue could be due to multiple factors, and be disastrous if the mechanisms to capture and analyze data are not in place.