Penske Logistics Presents: CSCMP State of Logistics Report Indicates that Supply Chains Are Seeking to Get Back in Sync
LOMBARD, ILL., June 21, 2022 – The 2022 State of Logistics Report was unveiled today at the National Press Club in Washington, D.C., with the 33rd annual publication finding that U.S.-based supply chains are out of sync, while adjusting to short-term changes and perhaps uncovering long-term solutions. It is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by Penske Logistics.
The publication delivers a snapshot of the American economy through the lens of the logistics sector and its role in overall supply chains. The report is a rigorous compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.
A key statistic that the report generates is the United States business logistics costs, or USBLC. In 2021, USBLC was elevated by 22.4% to $1.85 trillion, representing 8% of 2021's $23 trillion GDP.
Here are some major report findings:
- Business inventories dropped to near historic lows, but the costs associated with storing, handling and finance these items rose considerably. Inventory-carrying costs rose by 25.9% in 2021, and transportation costs jumped 21.7%. This led to uneven supply chains and inconsistent product availability for consumers (both in-person and online).
- Efforts to increase multi-shoring are expected to accelerate. Companies are seeking to have operations move closer to the U.S., to respond quicker to fluctuating market demands.
- Last year's report noted the effects of the pandemic on the supply chain. The residual challenges of the pandemic remain, with some disruptions continuing to deliver damaging effects on capacity.
- Last-mile delivery volume is trending upward. The 2022 report notes that e-commerce sales grew 10% last year (to $871 billion), accounting for 14% of U.S. retail sales.
- Trucking freight continues to see more volume and opportunities. With road freight accounting for the largest segment of the U.S. supply chain spend, it expanded by 23.4%, to a lofty $831 billion spend.
Mark Baxa, CSCMP president & CEO: "This year's State of Logistics' report is simply an outstanding and valuable asset to any supply chain organization. Competing in today's global marketplace is not just about the high-quality products supply chains plan, procure, make and deliver. It's also about impacting the global community and doing vital work like making and delivering life-saving vaccines. In the 33 rd year of this remarkable report, our readers will not only be in the best position to benchmark their own supply chain progress but to refine their approach, leading to better results. With supply chain making up the clear majority of most company's operations and that of its workforce, it has the greatest potential to make a real impact on its competitive advantage. I wish to thank our collaborative research and author partner Kearney, IHS Market, Penske Logistics and the CSCMP staff for all of their contributions."
Balika Sonthalia, partner at Kearney and lead author of the report, noted: "It's not surprising that we are continuing to see ongoing disruptions related to the pandemic, but the scope and impact of disruptions continue to weigh heavily on the minds of logistics providers – as they do for all companies contributing to the U.S. economy. What is notable for 2021, however, is that the logistics sector has begun to enable changes which should benefit manufacturers, retailers and consumers alike. We're especially heartened by the progress the sector has made in rebuilding supply chain resilience via multi-shoring, automation and optionality in last-mile distribution. This will also improve customer service and bring efficiencies for all parties."
Andy Moses, senior vice president of sales and solutions, Penske Logistics: "We have seen an incredible amount of resiliency among private truck fleets and dedicated contract carriage truck fleets. Demand has been up sharply year-over-year and these fleets continue to manage the complexities they face in the trucking supply chain including headwinds caused by shortages of parts, equipment, drivers, and most recently rising fuel costs. The State of Logistics Report does an excellent job of accurately capturing these challenges across all modes of transportation."
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Penske Logistics is a Penske Transportation Solutions company 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. Visit www.penskelogistics.com to learn more.
Since 1963, the Council of Supply Chain Management Professionals (CSCMP) been the preeminent worldwide professional association dedicated to the advancement and dissemination of research and knowledge on the supply chain management. With CSCMP members located around the world representing nearly all industry sectors, government, and academia, CSCMP member receive unparalleled networking opportunities, cutting-edge research, and online and on-site professional educational opportunities. To learn more, visit cscmp.org or follow CSCMP on social media: Twitter, Facebook, LinkedIn and YouTube.