AIRE: State of Logistics Luncheon

On Tuesday, March 14, AIRE hosted its monthly Lunch, Learn, and Lead at Gene & Georgetti’s in Rosemont. President and CEO of Council of Supply Chain Management Professionals (CSCMP), Rick Blasgen, spoke on the state of logistics and how it relates to supply chain management. Below are some key takeaways from the event.

E-Commerce, Logistics, & Supply Chain Management:

• Logistics costs in 2015 reached $1.4 trillion
  • After 5 years of increases, inventory levels have flattened
  • Since 2006, logistics costs have increased 20 percent
• 40-50 percent of the transportation workforce will retire within the next 10 years
  • The need for truck drivers has increased. With the baby-boomer generation beginning to retire, there are not enough young people filling these positions
  • Those needs may shift in the future as automated abilities continue to improve
• E-commerce was a $340 billion market in 2016
  • Supply chain cost is 25-30 percent of total e-commerce cost
• 10 years ago, only 30 percent of Fortune 500 companies had a “supply chain” position, that number is now at 85 percent