Whole Network Employment Interviews Market Overview Partnerships Point of view Products Technology

 

Truck companies are using new strategies to combat rising fuel prices

Filed in archive Market Overview by ehsan on April 24, 2008

truck-fuel-scm-cost-rise.jpg
It's common knowledge that the price of Diesel in the U.S. has been rising like crazy. For example, average price per gallon of diesel is currently $4.143 per gallon-representing an 8.4 cent spike over last week's $4.059.

In order to combat these issue, there are only two options: Reduce the prices and reduce the use of diesel. Unfortunately, the prices are rather uncontrollable now, so the truck companies have started to look for new strategies to reduce the amount of diesel used:

- Analyzing the freight portfolio carefully and look for ways to decrease the weight (e.g. packaging removal where possible).

- Partnering with other companies and buying in volume (marginal effect on cost because of high volume buying but not that much).

- Using more sophisticated forecasting techniques to estimate the fuel requirement and act beforehand in the case that helps to reduce the price.

- Using new techniques to reduce the tax on the fuel (from lobbying to transport optimization of fuel regarding tax).

What experience do you have with this?







Permalink: Truck companies are using new strategies to combat rising fuel prices
Tags: logistics  truck  management  freight  fuel  cost  reduction  strategies  control  scm  supply  chain  restricti 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/121265





RSSrss   | See all blog subscribe options
Google google   |   What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter
Grouptivity

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give us a call at +1 (650) 331 4900.


  • Testimonials

  • Frankly, the site is what TechPlanet Asia is collectively aspiring to. Ehsan covers indepth issues pertaining to the global transportation, logistics, supply chain and RFID industries, and also has an impressive blogroll. Highly recommended! ---- Raoul Le Blond of SCMTech Planet Asia

    I am a regular reader of your blog and it helps me learn & understand the domain of SCM and industry better ---- Rajiv Renganathan, Manhattan Associates


  • Other blogs in the same channel in the Creative Weblogging Network







 

Tagcloud: Basics Best practice Book Review Education Employment General Green supply chains Guest Column Implementation Interviews Market Overview merger and acquisition News Partnerships Point of view Practical Tips Products Research Special Events Sponsored Post Supply chain video Sustainability and supply chain Technology