Supply Chain Management Statistics That Might Surprise You
Some think of logistics and supply chain management as simply moving goods from one place to the next. In reality, it’s a complex and dynamic trillion-dollar industry, with outsourcing proven to be mission-critical for companies edging out competition.
Reliable supply chain management partners know it’s always been a challenging field, though it’s true lately many of us are facing down some tough realities. Those include higher rates, capacity shortages and now a pending trade war and import/ export uncertainties. This tightening of the market (especially in ground transportation) means those of us on the front lines need to be innovative now more than ever – while also holding true to the best practices and relationships that allowed us to ride out past tumult.
If you depend on Cleveland supply chain management, you may be interested in these surprising statistics offering insight into the industry – and where it’s headed.
Supply Chain Management By The Numbers
- By the end of 2018, only 17 percent of companies will be out of the supply chain automation loop. That’s a significant change from four years ago, when Morai Logistics put that figure at 40 percent. What that means is automation of supply chains is moving outside the realm of competitive advantage and instead becoming business-as-usual. Those companies that aren’t making efficient supply chain a top priority are going to get left behind.
- The annual average of major global natural disasters is 260, resulting in an economic loss of $211 billion. That’s according to the Chartered Institute of Procurement & Supply Risk Index. The global supply chain risk increased last year to the highest levels since records first began in 1995. You can’t prevent natural disasters and economic disruptions. Neither can we. However, the best supply chain management companies are ready for it, using data to prepare and even predict certain disruptions. That allows the chain to move around impacted areas and minimize customer losses.
- The State of Logistics Report (as detailed in Logistics Management) revealed freight transportation costs increased 7 percent in 2017 over the previous year. Private or dedicated trucking rose 9.5 percent. Less-than-truckload pricing increased 6.6 percent while full truckload rates climbed 6.4 percent. Meanwhile, inventory storage costs were up 4.6 percent. Getting the most for this investment means working with a partner you know is helping you get the best deal and greatest returns.
- More than 51 percent of retailers offer same-day delivery. A total of 65 percent are expected to offer it within the next two years. That’s according to data compiled by Invesp, which further noted nearly 60 percent of online consumers between ages 18 and 34 expect same-day delivery, while 61 percent of all consumers are willing to pay more for it. Ninety-six percent of customers now believe “fast delivery” means “same day” delivery. Gone are the days when most customers were willing to wait patiently for three-to-five business days. To ignore this trend – whether or not you’re in retail – is to do so at your own risk.
- The American Society of Civil Engineers reports the U.S. needs to invest some $4.6 billion in roads, ports, bridges and other traffic infrastructure – just to get the system up to grade. Although there have been several possible plans floated – ranging from a $1.5 trillion, 10-year plan on infrastructure to just $200 billion – nothing has actually gotten underway in Washington D.C. The longer these plans are on hold, the greater the impact to the efficiency of the U.S. supply chain. That makes working with an experienced firm even more essential.
- Although 94 percent of supply chain leaders say digital transformation will fundamentally alter supply chain management, only 44 percent were ready with a strategy at the beginning of this year. That’s according to study by The Hackett Group, proving not all supply chain management firms are equal. On Time Delivery & Warehouse can help customers optimize transportation performance, improve product visibility and availability and examine product as it ships.
- Nearly 80 percent of organizations with superior supply chain capabilities (also known as supply chain leaders) report revenue growth significantly above average, according to a survey by Deloitte.
The bottom line is despite what you may hear about the pressure many U.S. supply chain companies are under, the reality is we’ve always prided our team on finding solutions under pressure. On Time Delivery & Warehouse is here to stay.
If you have questions about Cleveland supply chain management, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.
Analytics Will Revolutionize Supply Chains In 2018, Jan. 15, 2018, By Louis Columbus, Forbes
More Blog Entries:
Finding the Best LTL Shipping Service in Ohio for Your Small Business, Feb. 27, 2018, Cleveland Supply Chain Management Blog