{"id":8786,"date":"2019-06-06T12:45:44","date_gmt":"2019-06-06T19:45:44","guid":{"rendered":"https:\/\/www.hollingsworthllc.com\/?p=8786"},"modified":"2019-11-06T14:15:15","modified_gmt":"2019-11-06T22:15:15","slug":"facts-about-supply-chain-and-logistics-2","status":"publish","type":"post","link":"https:\/\/www.hollingsworthllc.com\/facts-about-supply-chain-and-logistics-2\/","title":{"rendered":"15 Interesting Facts About Supply Chain Management and Logistics"},"content":{"rendered":"

[vc_row type=”container”][vc_column][vc_column_text]Supply chain management and logistics are aspects of a huge industry that involves shipping, packaging, distributing, and more. But thanks to a variety of advancements, the industry has changed significantly over the past few decades.<\/p>\n

Here are some of the most interesting facts about supply chain and logistics.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

15 Facts About Supply Chain and Logistics<\/h2>\n

1. Over 5 Million Are Employed in Transportation and Warehousing<\/h3>\n

[\/vc_column_text][vc_column_text]According to the Bureau of Labor Statistics (BLS)<\/a>, the U.S. alone is home to over five million transportation and warehousing employees. While the BLS classifies transportation as “the transportation of passengers and cargo,” it still shows the sheer size of this industry. In fact, warehousing and storage alone account for over 1 million employees.[\/vc_column_text][vc_single_image image=”8788″ img_size=”full” alignment=”center”][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

2. Supply Chain Management Software Is Huge \u2014 and Still Growing<\/h3>\n

[\/vc_column_text][vc_column_text]Other countries have even higher employment rates. For example, India’s logistics industry already employs over 22 million people<\/a>, and that number is expected to continue increasing by roughly 7% each year. [\/vc_column_text][vc_single_image image=”8790″ img_size=”full” alignment=”center”][vc_column_text]A recent report<\/a> showed that SCMS usage grew 9% year over year, a huge annual change for an already massive business. By 2025, the global SCMS market is expected to be over $22 billion.<\/p>\n

Considering that logistics is expected to be a $15.5 trillion industry by 2023<\/a>, SCMS usage should only continue to grow.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

3. Online Shoppers Keep Coming<\/h3>\n

[\/vc_column_text][vc_column_text]As the internet continues to spread across the world, the number of global online shoppers will continue to rise. One estimate predicts that 2021 will see over 2.14 billion online shoppers<\/a>. That’s over one-quarter of the global population. [\/vc_column_text][vc_single_image image=”8792″ img_size=”full” alignment=”center”][vc_column_text]For suppliers, the growing number of shoppers will complicate shipping \u2014 just one reason why supply chain logistics is expected to continue growing.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

4. U.S. Online Retail Is Booming<\/h3>\n

[\/vc_column_text][vc_column_text]The number of online shoppers in the U.S. isn’t growing as dramatically as global numbers since many Americans already shop online. But Americans are buying more online than they ever have.[\/vc_column_text][vc_single_image image=”8794″ img_size=”full” alignment=”center”][vc_column_text]Last year, the U.S. e-commerce market grew 15%<\/a>, a significant growth that has correlated with the decline of brick-and-mortar shopping. Unsurprisingly, this growth has also correlated with the growth in logistics. The two go hand in hand.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

5. Different Types of Logistics Exist<\/h3>\n

[\/vc_column_text][vc_column_text]Most people know what logistics are, but did you know that different types of logistics<\/a> exist?[\/vc_column_text][vc_single_image image=”8796″ img_size=”full” alignment=”center”][vc_column_text]Party logistics, or PLs, represent the breadth and types of services offered by a logistics company. Perhaps the most common type is third-party logistics (3PL). In a 3PL relationship, the shipper, or business, maintains control of the supply chain while the 3PL provider finds ways to make the supply chain more efficient. 3PLs often take care of shipping and warehousing, among other tasks. [\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

6. Most Fortune 500 Companies Use 3PLs<\/h3>\n

[\/vc_column_text][vc_column_text]Back in 2001, only 46% of Fortune 500 Companies used 3PLs. In 2017, that number jumped to 90%<\/a>. Not only are more businesses using 3PLs, but bigger businesses tend to lean on 3PLs more than anyone else.[\/vc_column_text][vc_single_image image=”8798″ img_size=”full” alignment=”center”][vc_column_text]One reason big businesses use 3PLs is scalability<\/a>. Scalability allows businesses to rapidly change the size and scope of their supply chain, and 3PLs provide the flexibility to scale as needed.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”container”][vc_column][vc_column_text el_class=”heading”]<\/p>\n

7. Outsourced Logistics Reduce Costs<\/h3>\n

[\/vc_column_text][vc_column_text]Not only do 3PLs make supply chains more efficient, but they can lead to reduced costs. In fact, 70% of shippers say that a 3PL saved them money while improving their service<\/a>.[\/vc_column_text][vc_single_image image=”8800″ img_size=”full” alignment=”center”][vc_column_text]<\/p>\n

The costs saved can depend on the services a 3PL provides. Some common 3PL services include:<\/p>\n