Logistics costs rise with heightened security
By Staff -- Manufacturing Business Technology, 9/1/2004 12:00:00 AM
A Logistics Management magazine reader survey finds that 82 percent of respondents reported increased attention to security, which has raised overall logistics costs—and it's not going to get better any time soon.
Much of this cost increase has been in planning and management, with nearly half of respondents reporting changes in shipping practices—including changing carriers, switching to third party logistics services, and purchasing security management software.
A third of the respondents stated carriers have told them delivery schedules will lengthen, and roughly 30 percent have already experienced delays due to elevated security practices.
Almost three-fourths of the respondents stated that certain geographic points are more prone to security regulation than others. The East Coast, Boston, New York, Washington D.C., Los Angeles, and San Francisco were prominently cited.
Compounding the problem, many see a drop in available capacity coupled with rising shipment costs. Nearly a third of the respondents said logistic service availability had decreased from the previous quarter, though 55 percent say they are somewhat optimistic that conditions will improve in the third quarter.
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