The affect of rising fuel costs on the individual consumer is well documented in current media. Consumers are paying more for their basic necessities. Fuel surcharge, transportation cost, and logistics have become house hold words. The rising cost of crude oil creates an increase in fuel cost, and this creates an increase in the cost to transport products from one location to another. Managers, who are responsible for acquiring products and delivering them to customers, are also feeling the impact of higher fuel prices. This article will outline three significant areas where fuel prices are affecting U.S. supply chain decisions. Sourcing decisions, transportation modes, and product design and packaging practices are all currently being influenced by the cost of logistics.
Welborn, Cliff. (2010). Fuel costs and supply chain decisions. Journal of Transportation Management, 21(1), 74-80. doi: 10.22237/jotm/1270080360