Competitive Edge Newsletter
August 6, 2008 by Editor
Filed under Competitive Edge Newsletter, Newsletters
The Rising Cost of Fuel and Its Impact on Grocery Distribution
By Paul Weitzel
The Benefit
Over the past 12 months, the cost of diesel fuel has increased by 47% and has tripled since 2002. Since most trucks in the grocery distribution system today are already cubed out, there isn’t a lot of slack in the system to absorb higher fuel costs. This means that the higher fuel costs are having a direct impact on supply chain profitability. As a result, many distributors are now pulling out fuel costs and adding surcharges to their service contracts to protect against sharp increased in the price of diesel. Read more
