CSCMP: Supply Chains Are Seeking to Get Back in Sync Amidst Rising Costs
June 22, 2022
The 2022 State of Logistics Report was unveiled at the National Press Club in Washington, D.C., with the 33rd annual publication finding that U.S.-based supply chains are out of sync, while adjusting to short-term changes and perhaps uncovering long-term solutions. It is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by Penske Logistics.
The publication delivers a snapshot of the American economy through the lens of
the logistics sector and its role in overall supply chains. The report is a
rigorous compilation of leading logistics intelligence from around the world and
shines a spotlight on industry trends and key insights on ever evolving supply
chains across a number of sectors.
Efforts to increase multi-shoring are expected to accelerate. Companies are seeking to have operations move closer to the U.S., to respond quicker to fluctuating market demands.
Last year's report noted the effects of the pandemic on the supply chain. The residual challenges of the pandemic remain, with some disruptions continuing to deliver damaging effects on capacity.
Last-mile delivery volume is trending upward. The 2022 report notes that e-commerce sales grew 10% last year (to $871 billion), accounting for 14% of U.S. retail sales.
Trucking freight continues to see more volume and opportunities. With road freight accounting for the largest segment of the U.S. supply chain spend, it expanded by 23.4%, to a lofty $831 billion spend.
Mark Baxa, CSCMP president & CEO: "This year's
State of Logistics' report is simply an outstanding and valuable asset to any
supply chain organization. Competing in today's global marketplace is not just
about the high-quality products supply chains plan, procure, make and deliver.
It's also about impacting the global community and doing vital work like making
and delivering life-saving vaccines. In the 33rd year of this remarkable report,
our readers will not only be in the best position to benchmark their own supply
chain progress but to refine their approach, leading to better results. With
supply chain making up the clear majority of most company's operations and that
of its workforce, it has the greatest potential to make a real impact on its
competitive advantage. I wish to thank our collaborative research and author
partner Kearney, IHS Market, Penske Logistics and the CSCMP staff for all of
“I found the CSCMP Logistics to be a good read and mostly an accurate read, based upon the time of it’s in-field research”, said Scott Deutsch, President, Americas of the Ehrhardt + Partner Group. “While supply chains are still being greatly challenged, we now are seeing the inventory “bull whip” effect playing out in real-time, as so many businesses over ordered six months ago to ensure proper inventory levels. Unfortunately, many businesses believed their demand signals and now have just too much inventory, which will lead to discounting and lowed earnings throughout the balance of 2022.”
Peck, Ph.D. the President of FastFetch: "I read the report and
believe the reported statistics. FastFetch operates only in the order
fulfillment space inside distribution centers so we have little control over
other important supply chain segments, like transportation, outside the four
walls of distribution centers. One important statistic in the report that is not
surprising is that inventory levels dropped to historic lows while
inventory-carrying costs rose by 25.9% in 2021. This is not surprising since the
labor and overhead costs in distribution centers remain relatively constant when
inventory levels drop. Consequently, the carrying cost per unit of inventory
Read more about supply chain projects
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