A Third of Distribution Centers Outsourced

Nearly one-third of distribution centers (DCs) are entirely outsourced, according to the survey-based Supply Chain Metrics Report released by the Tompkins Supply Chain Consortium.

“Supply Chain Consortium data indicates that while many companies continue to have their own DCs staffed by their own employees, there is an upward trend in the percentage of DC buildings and labor being outsourced in the past two years,” says Bruce Tompkins, executive director of the Consortium and author of the report. “This increase signifies that more organizations are considering outsourced DCs over ones that are company-owned and operated.”

With responses from more than 100 companies across nine industries, the report reveals key metrics on annual logistics costs, DC operations, finished goods inventory turns, on-time delivery, transportation sourcing solutions and more.

Additional findings include:

• Inbound transportation metrics average 4.7% as a percentage of cost of goods sold and 2.4% as a percentage of net sales;

• Total annual logistics cost as a percentage of net sales ranges from 4.1% to 10.0%;

• On-time delivery by mode ranges from 79% for ocean to 97% for parcel and air freight; and

• Most companies have more than half of their total logistics resources in distribution, customer service and transportation.

Additional metrics and topics will be presented during the 2012 Supply Chain Leadership Forum, August 27-29, in Denver.

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