Blog
High oil prices encourage supply-chain re-think
30th June 2008
With crude oil prices remaining at or around $140 per barrel and transportation costs soaring, global businesses are having to take a long hard look at their supply-chains - how they get their products to market. The Financial Times carried this good piece on changes at a true industrial giant Proctor and Gamble.
“Soaring energy prices are forcing Procter & Gamble to rethink how it distributes its products, with the world’s biggest consumer goods company shifting manufacturing sites closer to consumers to cut its transport bill.”
The rest of the article is here - when reading it try to find three examples of how the business is looking to absorb the effects of the steep rise in shipping costs.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.