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Free Articles From The Current Issue
Glimmers of hopeLogistics costs plunged dramatically last year as the economy contracted. Preliminary data for 2010 show that a recovery is under way, but shippers still face a host of challenges.
Don't breathe a sigh of relief just yet
Despite the recovery, companies are likely to pressure supply chain managers to cut costs even further.
A bright future... together
We must move beyond the typical approach of "state the problem and talk about the frustrations."
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Infrastructure investment: The supply chain connection
Because of its importance in maintaining and improving economic competitiveness, transportation infrastructure has become a frequent subject of discussion around the world. In the United States, for instance, those discussions reflect concerns about whether the country has the necessary infrastructure to compete with expanding economies like China and India. Another concern is whether the transportation infrastructure can handle international trade growth—a major issue considering that the value of exports and imports as a percentage of gross domestic product (GDP) has nearly doubled since 1990. Rising logistics costs are yet another worry. After years of decline, transportation and logistics costs as a percentage of GDP increased from 8.6 percent in 2003 to 9.9 percent in 2006. Many researchers believe that inadequate infrastructure and the resulting congestion are partly to blame for that cost increase....
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