19.10.2010

Logistics in the industrial and retail sectors perform well in Finland

Logistics costs have decreased for Finnish companies thanks to a significant fall in transport costs in the past two years

The competitiveness and logistic functionality of Finland continue to be very good, according to a survey commissioned by the Ministry of Transport and Communications on the state of logistics in Finland in 2010. More than 90 % of large and medium-sized companies consider logistics essential in terms of profitability and the level of customer service.

Finnish industrial and retail companies survived the recession well in terms of the efficiency of their logistics processes. The share of logistics costs from the turnover of Finnish companies decreased during the recession. In 2009 logistics costs totalled on average 11.9% of the turnover of Finnish companies, whereas in 2008 the corresponding figure was 14.2%. This change is mainly due to a significant decrease in transport costs, according to the survey.

The logistics survey, which is the most comprehensive study in the world conducted in this field, received some 1,800 responses. This year's survey focuses on the logistics costs of trade and manufacturing, key figures, logistics outsourcing and how a company's location influences its operations.

Finland has been ranked 12th in the global Logistics Performance Index (LPI) compiled by the World Bank International Trade and Transport Departments, with Finland's Turku School of Economics (TSE). According to the LPI report, the general level of satisfaction has improved since 2008 in how Finnish businesses view the logistical effectiveness of their local areas. However, companies in the regions of Lapland, South Savo, Kainuu and North Karelia said their regions are more challenging in terms of logistics.


Sources: Turun Sanomat, Ministry of Transport and Communications