Supply chain costs are set to rise, managers warn

Years of continuous cuts to supply chain costs are coming to an end, according to a new survey by consultancy AT Kearney and the European Logistics Association.

Supply chain managers at more than 100 European firms reported that, as a percentage of sales, supply chain costs today are 65 per cent lower than in 1987. But more than three-quarters of respondents said costs would probably increase.

They blamed rampant logistics costs, the complexity of business and the demand for value-added services. These three trends were...

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