Supply chain industry saw increased costs in 2011

A recently released report showed that total U.S. business logistics costs in 2011 increased to $1.28 trillion, which was a 6.6 percent increase from the previous year. However, some supply chain sectors, such as rail, also significant increases in revenue.

The Council of Supply Chain Management Professionals released its 23rd Annual State of Logistics Report, which was presented June 13 at the National Press Club in Washington, D.C.

"Part of our mission at CSCMP is to develop and disseminate research that helps our members understand how to do their jobs better," said Rick Blasgen, president and chief executive officer of the CSCMP. "Knowing how logistics and supply chain costs affect and are affected by the larger economy is a key part of this understanding.

U.S. business logistics costs in 2011 accounted for 8.5 percent of the U.S. gross domestic product, the report stated.

Given the still tenuous economic climate, supply chain solutions companies will seek ways to cut costs in the coming year. With technology rapidly evolving, supply chain businesses have caught on by utilizing cloud computing, according to EBOnline. Cloud-based systems have the ability to reduce operating costs and improve IT flexibility, which is making them more popular among supply chain companies.