Logistics report reveals manufacturers’ role in mastering global supply chains
November 12, 2008
By Alyssa Dalton
OTTAWA, Ont. – Canadian Manufacturers & Exporters (CME), in partnership with Supply Chain & Logistics Association Canada and Industry Canada, recently unveiled the first-ever Canadian State of Logistics Report. The study is intended to help Canadian supply chain managers better understand market trends, their competitive position within their sector and steps they can undertake to become more competitive.
"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,
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.