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The milk supply chain is influenced by fuel prices

Filed in archive News by ehsan on June 03, 2008

Recently in the U.K. almost all big retailers such as Tesco links

increased the price of the milk in their chains.

The result is clear: The rising cost of fuel which is required for transporting milk bottles all across the countries, from the farms to the stores.

In the meanwhile some of the farmers have already started asking for sharing the price rise extra income to compensate their higher cost. It seems that new forms of collaboration and contract management is shaping as the oil prices are influencing CPG products...

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Tags: scm supply chain milk 2007 supply+chain fuel+prices milk+supply

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Response from: no image Phil Obal (Check me out!)

In reality, ALL supply chains are impacted by fuel costs, as the products must be (1) created, which takes energy, (2) stored, which takes energy, for those forklifts and light bulbs, and (3) shipped, using diesel for the trucks and delivery trucks. So, to pin-point the Milk industry, is a bit narrow. My point is that ALL vertical industries are impacted by this - except for Jewelry and collectibles (E.G., crystal) - which are light weight and small. ALL of the other vertical industries are feeling their margins pinched - as diesel and nat gas prices are high!

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The milk supply chain is influenced by fuel prices

Filed in archive News by ehsan on June 03, 2008

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