CSCMP's Supply Chain Quarterly
June 27, 2017
Supply Chain Executive Insight E-Newsletter
Each month the Supply Chain Executive Insight e-newsletter will include brief articles about developments that are often overlooked by other supply chain publications. We will present you with summaries of the latest research as well as new ideas on how to make your supply chain operations more effective. And we'll offer commentary that sheds light on what's happening in supply chains today.
Sign up now!

Most Read Articles

News from our sister publication
DC Velocity
Forward Thinking

Rising supply chain costs will push up retail prices

Comment
Some manufacturers and importers plan to pass increases in logistics costs on to retailers and consumers, according to results of a recent survey.

Results of a new survey indicate that a spike in transportation and commodity costs could potentially push up retail prices by 10 to 15 percent for consumers this spring and summer. The supply chain finance company Capital Business Credit LLC came to that conclusion after polling more than 70 manufacturers and importers in early to mid-March. The respondents manufacture most or all of their products in Asia.

Sixty-two percent of respondents to the Global Retail Manufacturers and Importers Survey said that their logistics costs have climbed by more than 5 percent in the past year, in large part due to higher oil prices. Almost two-thirds of those respondents that reported higher logistics costs said that they would pass at least some portion of their increased costs along to the retailer and consumer.

"The rising cost of logistics will have a significant effect on manufacturers, importers, retailers, and consumers," said Andrew Tananbaum, executive chairman of Capital Business Credit. "Margins will be cut and prices will increase, causing stresses and cracks along the entire supply chain."

The survey also found that costs of raw materials, particularly cotton, have risen markedly. In fact, 94.5 percent of survey takers said that the prices they pay for raw materials had increased in the previous 12 months. Respondents said rising costs for cotton were of particular concern and would have a big impact on the price of certain consumer goods.

[Source: Capital Business Credit LLC, Global Retail Manufacturers and Importers Survey]

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.


Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. Click here to subscribe.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 2011: Rising supply chain costs will push up retail prices"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

Want more articles like this? Subscribe to CSCMP's Supply Chain Quarterly.