Smarter supply chain solutions needed as shipping costs continue to rise

June 19 2013

Every business needs to make sure it has a proper supply chain solution to ensure success. However, shipping costs continue to rise, meaning companies need to be even smarter with the solutions. A recent report released by the Council of Supply Chain Management Professionals (CSCMP) found that logistics and the supply chain continue to become a larger part of today's business world.

According to the 24th annual "State of Logistics Report," total U.S. business logistics costs rose by 3.4 percent to $1.33 trillion in 2012 over the year before. Transportation costs were up 3 percent due to inconsistent shipment volumes and pressure to hold rates.

"This year's report really underscores the competitive advantage a well-managed supply chain can provide shippers," Marc Althen, the president of CSCMP member Penske Logistics, said in a press release. "In spite of the 'new normal' business environment, we remain optimistic and see upside growth potential from this economic uncertainty especially for our core dedicated transportation, distribution center management and transportation management solutions."

He added that more shippers are outsourcing various elements of the supply chain to reduce warehousing, trucking and shipping costs while also helping to improve service levels and meet customer demand.

If costs continue to rise, many businesses will need to find better ways to handle shipping. If you are a small business in a city like Cleveland, turning toward a local courier service can be a smart way to improve shipping without needing to deploy a larger fleet that can become costly.