Logistics Cost and Service - Supply Chain Consulting

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What It Means Costs are second only to service as the most important driver of logistics. Average logistics costs are level from 2003 to 2004, a non-typical average. Half of companies have reduced their costs. Half of companies have experienced higher costs. The difference of 14% is logistics costs or >1 percent of sales. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2004, Herbert W. Davis and Company/Establish, Inc.
Two Different Strategies for Two Different Situations #1 – Typified by Consumer Companies Out of any slump in sales and volume. Sales and volume up and growing. Rising logistics costs covered by these higher revenues. License to work on new initiatives. Capital expenditures possible. Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2004, Herbert W. Davis and Company/Establish, Inc.
Page 1 and 2: LOGISTICS COST AND SERVICE 2004 EST
Page 3 and 4: To complete the transformation requ
Page 5 and 6: Establish, Inc./Herbert W. Davis an
Page 7 and 8: Significant Participants (1970s) Co
Page 9 and 10: Globalization of sourcing and marke
Page 11 and 12: Today - 2004 North American Status
Page 17 and 18: Key Findings - 2004 For the average
Page 19 and 20: Interpretation for the Typical Comp
Page 21 and 22: Average Company—2004 Database Cos
Page 23 and 24: Administration 5% 35% Inventory Car
Page 25 and 26: Cost as a % of Sales 12 10 8 6 4 2
Page 27 and 28: 9.0 8.5 8.0 7.5 7.0 6.5 Logistics C
Page 29 and 30: Logistics Cost Change 2004 versus 2
Page 31 and 32: Logistics Expense Change—2004/200
Page 33 and 34: Average Performance Reported STANDA
Page 35 and 36: Davis Insights 1. Strongest forces
Page 37 and 38: What is the most pressing issue in
Page 39 and 40: What is your most difficult custome
Page 41: What is the most recent change in y
Page 45 and 46: The Balanced Strategy Know your co
Page 49: Company Name: Sample Scope: Domesti

Logistics Cost and Service - Supply Chain Consulting

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