Chamber 2000 Logistics Survey Shows Customer Service, E-Commerce, Recruiting Top Issues

WASHINGTON D.C.-The United States Chamber of Commerce announced customer service is the number-one issue facing logistics managers in the new century, according to its 2000 logistics survey. E-commerce, supply-chain technology and recruiting were also mentioned as key logistics issues.

The Chamber survey, "Managing the Supply-Chain: A Survey of Logistics Leaders," compiled data from 344 logistics managers, including 137 managers from logistics industries - shipping, warehousing and transportation - and 207 logistics managers from other industries such as manufacturing, services, retail and construction.

While Internet and technology issues topped the list of concerns for larger firms, companies of all sizes indicated carrier selection and rate negotiation, productivity and quality, and workforce recruiting and development were important issues.

The most challenging aspect of the logistics manager's job, according to the survey, is hiring and retaining qualified staff. Staff positions allocated to logistics increased 4.5 percent from 1999 to 2000, with another 3 percent increase projected for 2001. Companies within the logistics industries showed the highest average increase - 8 percent - and also anticipate the highest increase for 2001 - 11.7 percent.

Only 25 percent of respondents reported an increase in their 2000 logistics operating budgets over 1999. However, logistics managers appear optimistic on future budget increases, with 41 percent saying they expect an increase for 2001.

In addition, respondents expect outsourcing to increase. Forty-seven percent of companies currently outsource at least a portion of their logistics budget, with that figure estimated to rise to 51 percent by 2003.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

# # #

00-230