For Ocean Spray, transportation costs are pushing them to a novel solution: partner with competitors to cut transport fuel costs by 40% and carbon emissions by 20%.
Logistics and shipping costs were the major threat to supply chains, affecting 52% of manufacturers, up from 37% a year earlier. That was the finding in a 2012 annual survey by MFG.com, an online marketplace for manufacturers and suppliers. Another concern was fuel oil prices, affecting 29% of manufacturers, steady for both years.
Addressing those concerns includes both managing fuel price uncertainty, as well as finding new ways to lower overall supply chain costs. Whether the shift is to the past with old-world modes like rail or advancing toward the future with alternative fuels and advanced technologies, no innovation is overlooked as supply chain managers work to lower costs and energy use in their operations.