The index gave inventory costs a record score of 91 and warehouse costs a score of 90.5. The scores are a combination of eight components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilization, prices and transportation capacity. Researchers calculate it using a diffusion index, in which any reading above 50 percent indicates an expansion and a reading below 50 percent indicates a shrinking logistics industry.
The report was released by Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada-Reno in conjunction with the Council of Supply Chain Management Professionals.
Findings:
- The index increased for the third straight month, up from 75.2 in February.
- Inventory levels dipped to 75.7 from 80.2.
- Increased fuel costs contributed to transportation utilization rising to 69.7.
- Transportation capacity rose to 45.7.
- Transportation utilization increased slightly to 69.7.
- Transportation prices increased slightly to 89.7.
- Warehousing capacity is down to 36.1, the lowest reading in the index’s history.
- Warehouse utilization rose to 75.
- Aggregate logistics prices, a combined measure of inventory, warehousing, and transportation costs was at 271.3.
