Julie Fraser executive brief: Smaller companies use supply chain strategy to offset rising energy costs

Executives in small and medium-sized manufacturing organizations are looking to their supply chain managers to minimize the pain of rising energy costs. The increasing burden of energy costs is forcing organizations to rethink not only their distribution plans, but also their strategies. These findings come from a survey of approximately 50 corporate executives from a wide range of industrial companies with annual revenues of less than $2 billion.  The survey was conducted in mid-October 2005 by Industry Directions, Inc.

Overwhelmingly, 98 percent of manufacturers surveyed said that energy prices have already had an impact on their business, and 81 percent say their company executives are now more focused on supply chain operations because of it. Supply chain managers are under tremendous pressure to contain costs and more effectively manage suppliers.

These findings come at a time when energy prices in many markets have doubled over the last year, with a particularly big jump in the aftermath of the recent Gulf Coast hurricanes. Facing intense pricing and cost pressures, manufacturers must redouble their efforts to find a way to alleviate the cost and pricing pincer.

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Executive brief: Smaller companies use supply chain strategy to offset rising energy costs  (111KB)

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