Posted by: changholt | March 29, 2010

Logistics, logistics, logistics — $$$

The Economic Importance of Logistics:

I. Logistics consumes a substantial portion of the United States Gross Domestic Product. It’s big business!

II. American businesses have spent about US $1 trillion on domestic logistical activities.

III. The percentage of the U.S. GDP has been decreasing.
a. 16.2% in 1982.
b. 10.1% in 2000.
c. 9.5% in 2005.

IV. There has been a development of increasing logistics efficiencies.
a. Just-in-Time inventory management
b. Manufacturing Resources Planning and other methods have reduced inventories.

V. More efficient transportation
a. Containerization
b. Deregulation of U.S. transportation industry

Having a good logistical set up is what is needed to be successful in today’s competitive market. It can make you money or cost you profit. Are you using the most efficient and effective logistics to grow your business internationally?


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