State of Logistics Report, Presented by Penske Logistics, Shows Stronger U.S. Economy
LOMBARD, ILL., June 19, 2018 – The Annual State of Logistics Report, unveiled today by the Council of Supply Chain Management Professionals (CSCMP), offered insights into a stronger U.S. economy. The supply chain study is produced by management consulting firm A.T. Kearney and presented by Penske Logistics (hashtag #SofL).
Among the key highlights of the 2018 CSCMP State of Logistics Report:
- United States business logistics costs, also known as USBLC, is 7.7 percent of GDP in this year's report.
- The costs of shipping goods and services is rising, as seen by increased capacity rates, which is leading to higher supply chain costs for corporations, and the consolidation of smaller trucking and logistics companies that cannot keep pace. Challenges in this space have resulted in high-level technological innovations that has shaken the industry out of outdated stereotypes. Rising fuel costs also factor into the equation.
- The continued growth of e-commerce pushed parcel shipment volume up by 7 percent in 2017, to nearly $100 billion. This has a strong effect on the supply chain, in the areas of more visibility for both the corporation and the customer; the need for more warehousing which in many cases will be smaller and closer to large population centers; and designing more responsive and flexible logistics networks, just to name a few.
- There is a continuing truck driver shortage in the transportation industry, which has a multitude of effects, one of which could be slower package delivery times for Americans, who by the day order increased goods and services online. Trucks transport 70 percent of consumer goods in this country.
- Speaking of technological innovations in the supply chain, here are several exciting concepts that look to have high impact across the next decade: uberization of freight; blockchain; fully autonomous trucks; artificial intelligence applications; truck platooning; electric vehicle fleets; autonomous mobile robots; and drone and unmanned aerial vehicle delivery systems.
The report for the last 29 years has provided a snapshot of the national economy through the lenses of the all-important supply chain and is accomplished through a rigorous compilation of leading logistics intelligence around the world; a spotlight on industry trends; while offering key points of view on the supply chain sector.
"Logistics is a critical part of any supply chain," said Rick Blasgen, president and chief executive officer of CSCMP. "This highly anticipated report contains the statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead, in a very dynamic marketplace."
"The demand-supply balance shifted much more dramatically this year when compared to last year," explained Sean Monahan, A.T. Kearney partner and report co-author. "In 2015 it was a dark story if you were a carrier. There was a lot of excess capacity in the marketplace. We saw that starting to turn around in 2016 and continued to accelerate into 2017."
"We are honored to support the State of Logistics Report for the 10th year," stated Joe Carlier, senior vice president of global sales for Penske Logistics. "It is an excellent guidepost for staying current with supply chain trends."
Since 1963, the Council of Supply Chain Management Professionals (CSCMP) has been the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With more than 8,500 members globally, representing business, government, and academia from 65 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management. To learn more, visit cscmp.org or follow CSCMP on social media: Twitter, Facebook, LinkedIn, and YouTube.
A.T. Kearney is a leading global management consulting firm with more than 3,600 people working in more than 40 countries. We work with more than three-quarters of the Fortune Global 500, as well as with the most influential governmental and non-profit organizations.
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to leading companies around the world. Penske Logistics delivers value through its design, planning and execution in transportation, warehousing and freight management. To learn more visit www.PenskeLogistics.com.