The 27th Annual State of Logistics Report shows that inventory levels are down and logistics costs are rising.
Given the extreme demands of the hundreds of millions of online consumers who expect free shipping and fast delivery, e-commerce interrupts transportation budgets and regular shipping strategies. In 2015, transportation costs rose 1.3% year-over-year.
Retailers, manufacturers and suppliers hold inventory to reduce costs and/or to improve customer service. Having too much inventory can cause excess merchandise to be wasted, and not having enough inventory can leave customers without the products they ordered.