NAIOP: How Fuel Costs Affect Logistics Strategies
16 Apr, 2012
Today's high oil and fuel prices are spurring companies to reevaluate their supply chains and distribution networks in a quest to find offsetting costs savings, says a new report, How Fuel Costs Affect Logistics Strategies, released by the NAIOP Research Foundation. The report says that the already high - and rising - prices of oil and fuel will not materially increase the demand for distribution centers (DCs) in order to reduce the average distance between such facilities and their customer destinations, countering what other supply chain experts have reported. Instead, this study shows that optimal solutions involve little more than minor tweaks, such as adding one or two DCs to the supply chain network or repositioning DCs in different cities.