"The report confirms our vision that manufacturing encompasses more than simply making a product. Manufacturing needs to be seen as the delivery of value through tangible goods," says CME president, Jayson Myers.
According to the report, logistics and supply chain management costs represent more than six percent of manufacturers' total sales. "As manufacturers strive to become leaner, faster and more agile, they realize that mastering supply chain management and logistics becomes a key, value-adding part of their business." The study highlights the efforts made by manufacturers in recent years to improve productivity and operational efficiency. In addition, the report shows that manufacturers were able to maintain their level of agility while increasingly relying on low-cost country sourcing as a strategy to reduce their operating costs as their inventory turnover rates can attest.
Finally, while the report shows that manufacturers have improved their competitive position, it also shows the need for continuous improvement. When compared with the United States, Canada's total supply chain management and logistics costs as a percentage of sales are 12 percent higher. For more information on the report, visit www.cme-mec.ca.