Source: Adapted from P.O Roberts, Supply Chain Management: New Directions for Developing Economies, http://www.worldbank.org/html/fpd/transport/ports/trf_docs/new_dir.pdf

Worldwide Logistics Costs, 2002

Worldwide logistics expenditures represent about 10-15% of the total world GDP. The most significant logistics cost concerns transportation (39%), followed by warehousing (27%) and then inventory carrying (24%); they jointly account for 90% of all logistics costs. Inventory carrying costs are the costs of maintaining inventory in a warehouse. This includes rent, utilities, insurance, taxes, employee costs and the opportunity cost of having capital fixed in a non-performing manner.