LOGISTICS COST AND SERVICE 2005 - Supply Chain Consulting

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Introduction The Establish, Inc./Herbert W. Davis and Company Logistics Cost and Service Database was established in 1975 to: Define appropriate performance measures for logistics functions. Provide worksheets to record functional costs by facility and in total. Summarize the data received from participating companies and aggregate it into a useful database for benchmarking. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2005, Herbert W. Davis and Company/Establish, Inc.
Today – 2005 North American Status Database of Logistics Cost and Service maintained and opened to all shippers to participate since 1975. Participation is achieved by completing a one-page questionnaire via mail, fax or on-line entry. Participant is sent a customized benchmark comparing cost and service performance to four peer groups: – Product category – Product value – Company size – sales revenue – Company size – shipped weight Database is summarized annually and results reported at this conference. Presentation has been made to the Annual Conference every year since 1977. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2005, Herbert W. Davis and Company/Establish, Inc.
Page 1: LOGISTICS COST AND SERVICE 2005 EST
Page 5 and 6: 1974 1982 1985 1987 Timeline 1992 1
Page 7 and 8: For those companies in the database
Page 9 and 10: Several Database Trends are Evident
Page 11 and 12: Logistics Cost —Percent of Sales
Page 13 and 14: Why are Overall Costs Declining? Fi
Page 15 and 16: Warehousing 22% Customer Service/ O
Page 17 and 18: Cost as a % of Sales 12 10 8 6 4 2
Page 19 and 20: Logistics Cost—Percent of Sales v
Page 21 and 22: Logistics Cost—Percent of Sales v
Page 23 and 24: 9.0 8.5 8.0 7.5 7.0 6.5 Logistics C
Page 25 and 26: 50 25 0 -25 -50 Annual Functional C
Page 27 and 28: 6.00 5.00 4.00 3.00 2.00 1.00 0.00
Page 29 and 30: Logistics Expense Change—2005/200
Page 31 and 32: Average Performance Reported STANDA
Page 33 and 34: Strongest Forces Driving Decisions
Page 35 and 36: Most Pressing Issue in Operating Lo
Page 37 and 38: Most Recent Changes in Your Logisti
Page 39 and 40: What It Means In a change since 20
Page 41 and 42: The Balanced Strategy Know your co
Page 43 and 44: Establish, Inc./Herbert W. Davis an

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