Stories Behind the State of Logistics Report

image

The Council of Supply Chain Management Professionals (CSCMP) released the 21st Annual “State of Logistics Report®” on June 9, 2010 in Washington, DC. The report, titled “The Great Freight Recession,” was delivered by Rosalyn Wilson and additional commentary was provided by a panel of industry leaders representing various areas within the supply chain.

By Francis J. Quinn, Editorial Director
June 30, 2010 - SCMR Editorial

If you haven’t yet read the 21st Annual “State of Logistics Report” from CSCMP (Council of Supply Chain Management Professionals), you really should take a few minutes out of your workweek to do so (it’s free to CSCMP members, $395 to nonmembers).

Researched and written by SCMR’s newest blogger, Rosalyn Wilson, the report contains a wealth of information to help managers better understand the current and future state of logistics and supply chain management. But there’s much more beyond the data alone.

The big picture numbers in this year’s report—total logistics costs, inventory levels, carrier capacities, for example—all dropped sharply. Yet this was not totally unexpected given that 2009 was only marginally better than 2008, another tough year for companies in just about every business sector.

But what I really like about the State of Logistics Report are the inferences that you can draw from many of the numbers. Take the downward trending on truckload capacity. As study author Wilson reports, capacity in this segment of the motor carrier industry is dropping at a dizzying pace. Part of this is due to consolidation in the industry, part to aging equipment being taken out of service and not replaced, and part to truckers just going out of business.

Certainly, this is not a good development. But what are the specific implications for logistics and supply chain managers? For one thing, dwindling carrier capacity—coupled with a gradual economic upturn—reinforces the wisdom of the old-fashioned virtues like partnership and collaboration. How so? Those shippers that have treated their carriers fairly and consistently when capacity are in a much better position to get the service they need when things get tight.

The same goes for a driver shortage, another industry trend spotted in the State of Logistics Report.  Fewer drivers can only exacerbate the tightening capacity constraints.

We recognize that in the real world notions like partnership and collaboration with your motor carriers (or providers of any transportation service for that matter) are honored as much in the breach as in the observance.  But when you read into research like the State of Logistics report, you realize that these “quaint” traits still have great currency.



About the Author

image
Francis J. Quinn
Editorial Director
Frank Quinn is the editorial director of Supply Chain Management Review, considered the premier publication for supply chain executives. Frank was the founding editor SCMR and has overseen its growth over the past 14 years. He has been covering the logistics/supply chain scene in various editorial and consulting positions for more than three decade. Frank is co-author of the recently published book Diagnosing Greatness: Ten Traits of the Best Supply Chains. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

About the Author

Frank Quinn, Editor Emeritus
Frank Quinn is Editor Emeritus of Supply Chain Management Review, considered the premier publication for supply chain executives. Frank was the founding editor of SCMR and has overseen its growth over the past 16 years. He has been covering the logistics and supply chain scene in various editorial and consulting positions for more than three decades. Frank is also co-author of the book Diagnosing Greatness: Ten Traits of the Best Supply Chains.

Comments

Post a comment
Commenting is not available in this channel entry.