Davis Database – Logistics Cost and Service 2007

Establish, Inc. recently presented its annual Logistics Cost and Service database at the CSCMP annual conference in Philadelphia.

The key findings identified for 2007 are:

• Transportation
  • TL/LTL – increased/idle capacity is positively influencing rates.
  • Ocean – lower capacity is negatively influencing rates
• Warehousing
  • 3PL consolidations and specialization
  • Network rationalization.
• Inventory
  • Increasing turns and order to cash cycles.

• Customer Service
  • Increased score cards and performance reporting.
  • Some benefits being realized from RFID.

• Trend group average:

• Cost as a percent of sales is down 3.4%.
• Cost per hundredweight is down 4.7%.

71% of companies were able to reduce their costs this year-significantly higher performance than in recent years.