LOGISTICS COST AND SERVICE 2005 - Supply Chain Consulting

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Most Difficult Customer Service Requirement Shortening cycle and lead times Smaller shipment sizes Fill rates/availability On-time delivery Next-day delivery System integration and data exchange Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © <strong>2005</strong>, Herbert W. Davis and Company/Establish, Inc.
Most Recent Changes in Your Logistics Network None 6% Other 7% 6% Reduce 3PLs 6% Org/Staff Consolidation 23% 10% Warehouse Rationalization 10% Strategy Change New Software 19% 13% New DC Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © <strong>2005</strong>, Herbert W. Davis and Company/Establish, Inc.
Page 1 and 2: LOGISTICS COST AND SERVICE 2005 EST
Page 3 and 4: Today - 2005 North American Status
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: Most Pressing Issue in Operating Lo
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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