CSCMP's 32nd Annual State of Logistics Report^®

Change of plans

The Council of Supply Chain Management Professionals’ (CSCMP) Annual State of Logistics Report^®, presented by Penske Logistics and authored by Kearney, was released virtually on June 24th, 2021, via webcast. The 32nd Annual State of Logistics Report® finds supply chains continuing to reset from the pandemic with resilient logisticians adapting, planning and shifting to meet current and future demands.

The 32nd Annual State of Logistics Report entitled: “Change of Plans” delivers a snapshot of the American economy through the lens of the logistics sector in the overall supply chain. The report is a rigorous compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends, and key insights on ever-evolving industry supply chains.

A key metric the report measures is U.S. business logistics costs. (USBLC). In 2020, USBLC dropped 4% to $1.56 trillion, or 7.4% of 2020’s $20.94 trillion gross domestic product (GDP). The pandemic forced many global supply chains to screech to a halt and then start back up. Again and again.

As a result of a still ongoing pandemic and other disruptions, supply chains will be forced to continuously adapt. Change is inevitable in supply chains and adjustments are ongoing as manufacturers shift their sources and consumers shift their spending habits. Change will also come from the trend of multi-shoring and emphasis on optionality at the expense of lean and optimal. Safety stock is back, so more inventory will need to be carried.

Key findings from the 2021 report:

The K-shaped recovery of 2021 reflects changed consumer habits. Hospitality, restaurants and airlines struggled. Grocery retail, home improvement and e-commerce prospered.
E-commerce purchases (some of which was picked up in-store) grew by 33% to $792 billion, representing 14% of all retail sales.
The control tower concept is taking on an added importance. Resilience is most effective when paired with visibility. Companies need knowledge to make quick decisions, and the control tower serves as an information hub to enable better planning and reacting.
Sustainability efforts by the transportation sector are increasing. Consumers are considering environmental impacts in their purchasing decisions while governments across the globe are instituting more stringent regulations.
Moving forward, supply chains must continue to provide goods and services to the American public while dealing with tight capacity and volatile rising rates; H1 2021 has the highest rates the market has ever seen.
The U.S. economy is now expected to grow 7.7% this year with advancements related to increased vaccinations and a return to normal.

Access the full report