CSCMP's Supply Chain Quarterly
December 17, 2017
Supply Chain Executive Insight E-Newsletter
Each week 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
Direct Connection
Direct Connection

A new era for logistics

Comment
The 2016 "State of Logistics Report" documents how the factors underlying logistics costs and trends are changing—perhaps permanently.

Every year in June, the Council of Supply Chain Management Professionals (CSCMP) releases its annual "State of Logistics Report" at a press conference in Washington, D.C., with Penske Logistics as the report's top supporter. And every year, this highly anticipated research is cited around the world as the authoritative analysis of the impact logistics activity has on the U.S. economy.

In those respects, the 2016 "State of Logistics Report" was just like its predecessors. But the new report also featured several changes that will enhance its value for our members and others who read it. First, CSCMP collaborated with the global management consulting firm A.T. Kearney, the report's new author and researcher. Second, A.T. Kearney has used some new data sources and analysis methodologies. And finally, the report has been expanded to include a narrative about the economic environment impacting logistics, insights from interviews with industry leaders, a spotlight on relevant trends, and a strategic view of the state of the industry.

Change is also the overarching theme of the 2016 "State of Logistics Report." As this year's title, "Logistics in Transition: New Drivers at the Wheel," suggests, the factors underlying logistics costs and trends are shifting. Here are just a few examples from the report's findings:

The logistics industry is entering a new era. Over the next decade, disruptive forces, including technology and operational constraints, threaten to fundamentally change the rules of the game.

Logistics costs are rising more slowly. Total U.S. business logistics costs rose to $1.48 trillion in 2015, a 2.6 percent increase from the previous year and a considerably slower rise than we've seen in the past few years.

Transportation demand and rates are down, while capacity is up. Demand for motor carriage, containerized shipping, airfreight services, and coal traffic and crude oil by rail have declined. Rates in some sectors are soft and continue to fall. Ocean and air are both experiencing significant overcapacity, creating a favorable rate environment for U.S. shippers.

Growth in parcel and express is being fueled by e-commerce. A notable exception is the parcel and express sector, which continues to grow, with the main drivers being the explosion of business-to-consumer (B2C) e-commerce and omnichannel retail.

Technology is changing 3PLs. Technology will continue to play a key role in the evolution of the third-party logistics market. There's something for every logistics and supply chain manager in this report, including the statistics and industry insights that will not only help you do your job better, but will also better prepare you for the business demands ahead. I hope you'll read the 2016 "State of Logistics Report" from cover to cover. The report is complimentary for all CSCMP members as an exclusive member benefit and is available for purchase by nonmembers. I invite you to visit cscmp.org/member-benefits/state-of-logistics for more information.

Rick Blasgen is President and Chief Executive Officer of the Council of Supply Chain Management Professionals (CSCMP).

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 2016: A new era for logistics"> . 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.