New State of Logistics Report by CSCMP
CSCMP’s 29th Annual State of Logistics Report® is authored by A.T. Kearney and presented by Penske Logistics. The report presents an overview of the economy during the past year, the logistic industry’s key trends and the total U.S. logistic costs for 2017. CSCMP’s Annual “State of Logistics Report®” has tracked and measured all costs associated with moving freight through the U.S. supply chain since 1988.
The State of Logistics Report® is widely used by supply chain management and logistic professionals and organizations as the premier benchmark for U.S. logistics activity. The report will not only help individuals do their jobs more effectively and efficiently, but also prepare them for future business demands in an everchanging marketplace.
This year’s report is titled “Steep Grade Ahead”; here is a preview of the key highlights from the 29th State of Logistics Report®:
- United States business logistics costs, also known as USBLC, is at $1,1494B or 7.7% of Nominal GDP in this year’s report
- The costs of shipping goods and services is rising, as seen by increased capacity rates, which is leading to higher supply chain costs for corporations, and the consolidation of smaller trucking and logistics companies that cannot keep pace. Challenges in this space have resulted in high-level technological innovations that has shaken the industry out of outdated stereotypes. Rising fuel costs also factor into the equation
- The continued growth of e-commerce pushed parcel shipment volume up by 7% in 2017, to nearly $100 billion; forecasts expect that to rise at similar levels for the next few years. This has a strong effect on the supply chain, in the areas of more visibility for both the corporation and the customer; the need for more warehousing which in many cases will be smaller and closer to large population centers; and designing more responsive and flexible logistics networks, just to name a few
- There is a continuing truck driver shortage in the transportation industry, which has a multitude of effects, one of which could be slower package delivery times for Americans, who by the day order increased goods and services online. Trucks transport 70% of consumer goods in this country
- Speaking of technological innovations in the supply chain, here are several exciting concepts that look to have high impact across the next decade: uberization of freight; blockchain; fully autonomous trucks; artificial intelligence applications; truck platooning; electric vehicle fleets; autonomous mobile robots; and drone and unmanned aerial vehicle delivery systems
The report for the last 29 years has provided a snapshot of the national economy through the lenses of the all-important supply chain and is accomplished through a rigorous compilation of leading logistics intelligence around the world; a spotlight on industry trends; while offering key points of view on the supply chain sector.
“Logistics is a critical part of any supply chain,” said Rick Blasgen, president and chief executive officer of CSCMP. “This highly anticipated report contains the statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead, in a very dynamic marketplace.”
“The demand-supply balance shifted much more dramatically this year when compared to last year,” explained Sean Monahan, A.T. Kearney partner and report co-author. “In 2015 it was a dark story if you were a carrier. There was a lot of excess capacity in the marketplace. We saw that starting to turn around in 2016 and continued to accelerate into 2017.”
“We are honored to support the State of Logistics Report for the 10th year,” stated Joe Carlier, senior vice president of global sales for Penske Logistics. “It is an excellent guidepost for staying current with supply chain trends.”
CSCMP’s State of Logistics Report® is available for free to CSCMP members or can be purchased at cscmp.org.
FROM FACTORY TO FINALS: THE SUPPLY CHAIN OF A BASKETBALL