Why SCM is important Table A.3.The cost of the business logistics system in relation to gross domestic product Nominal Administrative Total U.S. Inventory Transportation Inventory Transportation GDP Year logistics cost Logistics a车a as a costs (Billions (Trillions of carrying costs costs(Billions (Billions of of GDP ercentage (Billions of US $ percentage of USS) of US S) of USS) USS) ofGDP GDP 1980 2.88 220 214 17 451 15.7 7.6 7.4 1981 3.17 259 228 19 506 16.0 8.2 7.2 1982 3.31 234 222 18 474 14.3 7.1 6.7 1983 3.64 211 243 18 472 13.0 5.8 6.7 1984 4 239 268 20 527 13.2 6.0 6.7 1985 4.23 227 274 20 521 12.3 5.4 6.5 1986 4.51 217 281 20 518 11.5 4.8 6.2 1987 4.74 225 294 21 540 11.4 4.7 6.2 1988 5.11 251 313 23 587 11.5 4.9 6.1 1989 5.49 283 329 24 636 11.6 5.2 6.0 1990 5.8 283 351 25 659 11.4 4.9 6.1 1991 5.99 256 355 24 635 10.6 4.3 5.9 1992 6.32 237 375 24 636 10.1 3.8 5.9 1993 6.64 239 396 25 660 9.9 3.6 6.0 1994 7.05 265 420 27 712 10.1 3.8 6.0 1995 7.4 302 441 30 773 10.4 4.1 6.0 1996 7.81 303 467 31 801 10.3 3.9 6.0 1997 8.43 315 503 33 851 10.1 3.7 6.0 1998 8.76 324 529 34 887 10.1 3.7 6.0 1999 9.26 332 554 35 921 9.9 3.6 6.0 Source: Cass Logistics Ltd.,1/th Annual "State of Logistics Report,"June 000. SCM by J.J.Gao SEIEE AU406 11
SEIEE AU406 + - Why SCM is important SCM by J. J. Gao 11
Why SCM is important Logistics cost as a percent of GDP Logistics cost takes large 9.8 9.9 9.3 percentage in 9.4 8.6 8.5 8.7 8.5 GDP 8.3 7.9 ▣ The annual military expense of U.S is around 4%of GDP 2002200320042005200620072008200920102011 Source:CSCMP's Annual State of Logistics Report SCM by J.J.Gao SEIEE AU406 12
SEIEE AU406 + - SCM by J. J. Gao Why SCM is important Logistics cost takes large percentage in GDP The annual military expense of U.S is around 4% of GDP 12
Why SCM is important 表17.物流成本占GDP的比例 (% 运输成本 保管成本 管理成本 物流成本合计 1991 12.3 9.6 1.4 23.3 1992 11.5 8.2 1.5 21.2 1993 10.7 6.5 1.5 18.7 1994 9.4 5.5 1.5 16.4 1995 8.8 6.0 1.5 16.3 1996 9.0 6.3 1.5 16.8 1997 9.4 6.4 1.5 17.3 1998 9.5 5.6 1.5 16.6 1999 9.9 5.0 1.5 16.4 2000 10.0 4.7 1.6 16.3 摘自《中国物流成本摘要》 SCM by J.J.Gao SEIEE AU406 13
SEIEE AU406 + - SCM by J. J. Gao 摘自《中国物流成本摘要》 Why SCM is important 13
Logistics in the Manufacturing Firm Profit Profit 4% Logistics Cost ■Logistics Cost 21% Marketing Cost Marketing Cost 27% Manufacturing Cost 48% Manufacturing Cost SEIEE AU406 1-14
+ - SEIEE AU406 Logistics in the Manufacturing Firm Profit 4% Logistics Cost 21% Marketing Cost 27% Manufacturing Cost 48% Profit Logistics Cost Marketing Cost Manufacturing Cost 1-14
Supply chain management:True magnitude Estimated that the grocery industry could save $30 billion (10%of operating cost)by using effective logistics and supply chain strategies A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealership P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand SCM by J.J.Gao SEIEE AU406 15
SEIEE AU406 + - SCM by J. J. Gao Estimated that the grocery industry could save $30 billion (10% of operating cost) by using effective logistics and supply chain strategies A typical box of cereal spends 104 days from factory to sale A typical car spends 15 days from factory to dealership P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand Supply chain management: True magnitude 15