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The 2023 CSCMP State of Logistics Report Indicates Supply Chains Have Adapted to Drive Resilience After Two Years of Global Volatility

The 2023 State of Logistics Report was unveiled at the Indianapolis Motor Speedway, with the 34th annual publication finding that U.S. supply chains responded to the global volatility from the past two years by transforming supply chain networks to improve resilience against future disruption.

Produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by leading third-party supply chain provider Penske Logistics, the annual report offers a snapshot of the American economy via the lens of the logistics sector and its role in overall supply chains.

The report is a comprehensive compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.

While last year’s report highlighted the need to get back in sync, the 2023 version focuses on how logistics operations can build long-term resilience in an effort to best serve customers through a variety of distribution channels.

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Among the notable findings:

  • A key report statistic, U.S. business logistics costs, shows an increase. USBLC now stands at a record $2.3 trillion (was $1.85 trillion last year), representing 9.1% of national GDP—the highest percentage of GDP ever.
  • While consumers are continuing to return to stores, e-commerce sales are not slowing down. In 2022, the U.S. e-commerce market grew by 8%, to $1.03 trillion (was $871 billion). It is now 14.5% of the entire U.S. retail market.
  • Third-party logistics providers are investing more capital into their technology offerings, as opposed to shippers (companies that provide goods and services). Respondents indicated that 96% of 3PLs have migrated to the cloud (shippers indicated 86% of them have), while 80% of 3PLs are investing in IoT (77% for shippers).
  • The reshoring movement continues. For a number of businesses, reshoring has gone from a strategic possibility to a market reality. According to the Kearney Reshoring Index, American imports of Mexican manufactured goods have grown by 26% (dating back to spring 2020).

CSCMP President and CEO Mark Baxa brought to the fore the significance of the research: “I believe supply chain leaders will find this year’s Annual State of Logistics Report, produced by our expert partners at Kearney, to be one of the very best shared with CSCMP’s 10,000 members worldwide. Our commitment to offering relevant, high-quality content speaks for itself in this 34th edition of the report. We are committed to supporting this report with timely and frequent ongoing commentary that ensures relevance throughout the year ahead. After reading the report cover-to-cover, I encourage you to ask, ‘what’s different, and do I understand the course of action to ensure maximum logistics success on the road ahead?’. Whether you are the senior leader or an entry-level analyst, you have decisions to make that will make a difference in your supply chain’s performance. CSCMP is uniquely positioned to ensure you have the tools—along with relevant research—to develop solutions through supply chain competency and capability building. CSCMP membership has tremendous ROI value.”

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“As the logistics sector moves forward from years of supply chain challenges and bottlenecks, our report shows that now is the time to begin thinking seriously and proactively when it comes to building strategic capacity,” noted Balika Sonthalia, senior partner at Kearney and co-author of the 2023 State of Logistics Report. “Although the market has swung back in shippers’ favor—to the detriment of carriers—we cannot emphasize enough the importance for all industry participants to begin planning for geopolitical tensions, cybersecurity threats, climate change and related natural disasters, slowing e-commerce growth, and global recessionary factors.”

Andy Moses, senior vice president of sales and solutions, Penske Logistics: “We have seen a dramatic run up in supply chain costs, to a record $2.3 trillion. Third-party logistics providers like Penske play a critical role in helping shippers navigate an increasingly volatile logistics market. Shippers are actively seeking solutions, which is currently reflected by the strength of our development activity.”

Kearney is a leading global management consulting firm. For nearly 100 years, we have been the trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we help our clients break through.

Penske Logistics is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania. The company is a leading provider of innovative supply chain and logistics solutions. Penske offers solutions including dedicated transportation, distribution center management, lead logistics, freight management, transportation management, freight brokerage, and a comprehensive array of technologies to keep the world moving forward.

In its 60th year of service, the Council of Supply Chain Management Professionals (CSCMP) has been the preeminent worldwide professional association dedicated to the advancement and dissemination of research and knowledge on supply chain management. With CSCMP members located around the world, representing nearly all industry sectors, government, and academia, CSCMP members receive unparalleled networking opportunities, cutting-edge research, and online and on-site professional educational opportunities.

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