Topic: Logistics industry in the U.S. (2024)

FAQs

Topic: Logistics industry in the U.S.? ›

The United States (U.S.) logistics industry is a highly integrated supply chain network. It links producers and consumers through multiple transportation modes, including air and express delivery services, freight rail, maritime shipping, and truck transport.

The logistics industry ranges between $8 trillion and $12 trillion annually, calculated as a percentage of GDP. The U.S. attributes up to 10% of its annual GDP to the logistics industry — roughly $2 trillion in 2019.

Importance of Logistics

In business, success in logistics translates to increased efficiencies, lower costs, higher production rates, better inventory control, smarter use of warehouse space, increased customer and supplier satisfaction, and an improved customer experience.

Job Outlook

Employment of logisticians is projected to grow 18 percent from 2022 to 2032, much faster than the average for all occupations. About 21,800 openings for logisticians are projected each year, on average, over the decade.

Here are the main risks that logistics can face:

Interruptions at any point in the supply chain can affect the transportation, storage or production of products. Unexpected events such as natural disasters, malfunctions in the logistics network, strikes, political upheavals can interrupt the supply chain.

For instance, lack of upstream and downstream visibility, legacy demand management processes, lack of resilience to demand variability, and unexpected outages due to reliance on manual effort across logistics operations had shattered supply chain during the first wave of lockdowns.

What are the 7 C's of logistics? ›

We identify, based on the literature, the '7 Cs of supply chain management' Connect, Create, Customise, Coordinate, Consolidate, Collaborate and Contribute.

Partner Portal, a cloud-based vendor management solution, can help an organization implement the three C's - communication, collaboration, and change effectively and eventually synchronize the supply chain operation.

So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

U.S. Logistics supply chain system offers a complete set of inventory management, manufacturing and purchasing capabilities that helps move inventory to the right place, at the right time, at the right cost. Gain an in-depth, real-time view into key supplier, inventory and shop floor performance indicators.

Trucking Business

Starting a logistic business, such as trucking, can be an incredibly profitable venture for entrepreneurs in India.

Logisticians made a median salary of $77,520 in 2022. The best-paid 25% made $99,400 that year, while the lowest-paid 25% made $60,020.

Logistics Industry Size: Annual Estimates Range From $8 Trillion To $12 Trillion. The global logistics industry size is enormous. The industry contributes up to 10% GDP in the United States and about 12% of the global GDP. Economic industry indicators saw the logistics market closing in at $2 trillion in 2019.

U.S. business logistics costs (USBLC) exceeded $2.316 trillion in 2022, which equated to 9.1% of the U.S.'s nominal gross domestic product (GDP) that year, the highest mark of all time according to a recent report.

Trucking is responsible for most of the overland freight movement in the United States, with the market being worth 732.3 billion U.S. dollars in 2020. At that time, there were over 902,000 truck drivers employed in the U.S., which is less than the industry requires.

Supply chain has broader scope than logistics: Supply chain is about creating an uninterrupted, cost-effective flow between consumer demand and the delivery of finished goods. Logistics is about planning and organizing operations to ensure supply chain and commerce processes run smoothly.