LOGISTICS COST AND SERVICE 2005 - Supply Chain Consulting

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Cost Changes in 2005 In the time since this data was collected, most companies are experiencing: Transportation cost increases due to rate and fuel surcharge increases. Warehouse cost increases due to expanded facilities and longer hours. A lag in inventory build to combat lower fill rate. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2005, Herbert W. Davis and Company/Establish, Inc.
The Balanced Strategy Know your costs and service levels. Understand where your company places in comparison to your industry and other industries. Tightly control logistics independent of rising or falling sales. Improvement – and capitalization – need to be accomplished on a constant basis. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2005, 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 and 36: Most Pressing Issue in Operating Lo
Page 37 and 38: Most Recent Changes in Your Logisti
Page 39: What It Means In a change since 20
Page 43 and 44: Establish, Inc./Herbert W. Davis an

LOGISTICS COST AND SERVICE 2005 - Supply Chain Consulting

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