North America Lags Behind Europe in its Expenditure of Total Sales on Logistics: Report
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North America Lags Behind Europe in its Expenditure of Total Sales on Logistics: Report

By CIOReview | Monday, August 3, 2015

FREMONT, CA: North America spends 6.8 percent of total sales on logistics, whilst Europe spends just over 10.5 percent, reveals a recent study conducted by Research and Markets, a market research store. The report gives insights into the Consumer Packaged Goods (CPG) sector and highlights the fact that it is relatively stable in the developed world but that changing channels of consumption are providing scope for new service offerings.

The report titled “Global CPG Logistics 2015” looks at both the size of the logistics operations supporting CPG and the nature of what the CPG demands from logistics providers. The report essentially focuses on areas such as: characteristics of CPG logistics, supply chains of the biggest CPG companies, CPG market size and logistics costs, CPG in developed and emerging economies and logistics service provider profiles.

Meanwhile in emerging markets, the under-developed logistics capacity of many markets has developed a substantially increased demand for more sophisticated logistics services to cater for growing demand for CPG. In the interim in emerging markets, the under-developed logistics capacity of many markets has developed a substantially increased demand for more sophisticated logistics services to cater for growing demand for CPG.

Key findings of the research:
North America spends 6.8 percent of total sales on logistics, whilst Europe spends just over 10.5 percent. Markets in the emerging economies have much higher cost bases- possibly twice that or the US. Perception that the CPG sector in developed economies offers little growth however some companies continue to grow at pace. Moreover, not all emerging economies have the same market needs.

For instance, products in China vary to those required in Brazil. However, one obstacle to growth of CPG in emerging markets is the poor efficiency of logistics. Transport is often expensive and high quality warehousing can be scarce. In addition, growth of CPG in emerging markets is a major opportunity for those with the capital to acquire large and complex distribution centers.

The chief topics covered in the report include: CPG Logistics, characteristics of CPG, supply chain management in the CPG sector, branding and logistics, CPG development and innovation, supply chains, CPG market size and logistics costs, the size and state of the CPG market, CPG cost profile, CPG logistics cost, CPG logistics cost profile examples, CPG markets, CPG commodity trade, CPG in developed economies, CPG in emerging economies and Logistics provider profiles.

The report hence looks at both the size of the logistics operations supporting CPG and the nature of what the CPG demands from logistics providers.

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