Supply chains continue to become more responsive, and providers are developing more solutions than ever, Andy Moses, senior vice president of sales and solutions for Penske Logistics, said during a webinar presentation ahead of the formal release of the 2023 State of Logistics Report last week.
“Logistics is largely a solutions-based discipline,” Moses said. “It’s heavily fueled by technology, by process [and] discipline by scale. And I think what we’re seeing is the requirements for the responsiveness of supply chains have never been greater. And our solutions activity is kind of off the charts at the moment.”
The 2023 State of Logistics Report is produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by third-party supply chain provider Penske Logistics. It offers a snapshot of the American economy via the lens of the logistics sector and its role in overall supply chains.
Top leaders from across the supply chain came together for the webinar, offering their thoughts on the top issues of the day, and answering questions on the market and some of the findings in the report.
The report found that U.S. business logistics costs increased and now stand at $2.3 trillion, up from $1.85 trillion last year. USBLC represents 9.1% of GDP and has grown 46% compared to 2020.
E-commerce continues to hum along, increasing 8% in 2022 to $1.03 trillion, making up 14.5% of the U.S. retail market. When it comes to technology investment, 3PLs are leading the way, with 96% indicating they have migrated to the cloud while just 86% of shippers said the same. Shippers also lag in investing in IoT, at 77% compared to 3PLs 80%.
For a number of businesses, reshoring has gone from a strategic possibility to a market reality. According to the Kearney Reshoring Index, American imports of Mexican manufactured goods have grown by 26% (dating back to spring 2020).
But among the gathered experts, there were other themes that came through as well.
