We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Efficiency gains offset by rising fuel prices
Forward Thinking

Efficiency gains offset by rising fuel prices

December 1, 2008
Supply Chain Quarterly Staff
No Comments

The total cost of logistics remained about the same this year as last, as gains made from reduced inventory, costs savings, and greater efficiencies in the warehouse were negated by increases in fuel costs. That's according to the "Logistics Cost and Services 2008" study conducted by Establish Inc., a supply chain consulting firm. The results of the annual study were shared during the CSCMP Annual Global Conference by Establish Inc.'s Conrad Ross, Steve McDonald, and Jason Pankowski.

Logistics costs as a percentage of sales have been declining over the past five years as companies have improved warehousing efficiencies and reduced inventories, according to the presenters. But with increasing fuel costs and an uncertain economy, logistics costs as a percentage of sales are expected to increase in 2009.

Total logistics costs as a percentage of sales now stand at 9.28 percent. That's down a mere 0.1 percent from 2007. In Establish Inc.'s report, transportation represents 4.68 percent of sales, warehousing is 1.9 percent, and inventory is 1.8 percent. Warehousing and inventory are each 20 percent of logistics costs, customer service and order entry total 7 percent, and administration is the remaining 3 percent.

Transportation accounts for half of total logistics costs and may get higher depending on the volatile fuel market. In 2008, transportation costs increased 18.3 percent, while warehousing costs decreased 8.5 percent.

[Click here to view presentation slides on cscmp.org.]

  • Related Articles

    Rising supply chain costs will push up retail prices

    Transport, warehousing employment gains in the U.S. fueled by warehousing, truck, couriers

    Higher oil prices call for flexible supply chains

Recent Articles by Supply Chain Quarterly Staff

Buyers could target warehousing and fulfillment operations in 2021, investment bank says

IBM survey says digitalization trends will sweep trucking industry by 2030

Report tracks rise in cargo theft from storage facilities

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Retailers designing stores to support inventory and logistics work, not just shopping

  • Seizing the helm

Featured Video

6cabd6ef 64df 4460 bb11 e90c2bdea0a5

Identifying Intralogistics Solutions to Fit Your Operation: LinkedIn Live Ep. 4

Viewer Contributed
As technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address labor shortages are clear. However, before an organization jumps fully into automation, optimization is a key step that must happen first. Intralogistics solutions, such as Raymond’s iWAREHOUSE and...

FEATURED WHITE PAPERS

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

  • Finding the Right Transportation Management Partner

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing