By George Anderson
The average time it takes to go from order-to-delivery was cut 79 hours, according to the Grocery Manufacturers of America's (GMA) 2003 Logistics Study.
A press release from GMA states, "While the supply chain is becoming more responsive, overall logistics costs have risen 12 percent since 1999, from 6.6 percent of net sales to 7.4 percent, at least in part from the increased costs of better responsiveness."
Inventory levels continue to decrease albeit at a slow pace. GMA reports 2002 inventory levels were down to 44.7 days of supply compared to 46.1 in 1999. The industry's goal is 27 days.
Moderator's Comment: Are increased responsiveness and lower supply chain costs compatible goals for manufacturers, wholesalers and retailers? What will it take to get to logistics nirvana?
You can download a pdf copy (Adobe Acrobat required) of the study at: http://www.gmabrands.com/news/docs/NewsRelease.cfm?DocID=1103 [George Anderson - Moderator]