The only thing that’s a given when it comes to gas prices is that they are in a constant state of flux, supplies are unpredictable and therefore new models have to be considered. Companies can be proactive, though, when it comes to their supply chain strategies. It is critical to have a dynamic, rather than static supply chain strategy in a time of rising oil prices.So they must plan ahead and evaluate where supply chain activities are conducted as well as examine what current processes look like. Facing challenges head on can reduce the impact on operations and the bottom line, industry observers say. The number one way to protect the supply chain against rising gas prices is to be flexible: deploying different routes to market and a willingness to rebalance product flows is a critical mitigation strategy.
In the report Past the Tipping Point: Record oil prices require new supply chain strategies to enable future high performance, consulting firm Accenture makes the case that companies can raise their flexibility by examining the supply chain’s core components and taking a number of steps. Evaluating every process and can help avert problems, the report emphasizes, and become a way to seize opportunities.
High fuel prices are something everyone has to contend with – no one is immune. Keeping your supply chain flexible and innovative is an effective way to cope with the issue.