 |
From
£495 |
|
| IGDs guide to the impact of rising world energy prices on the food and grocery supply chain |
| Request a free sample extract here |
| | |
The modern grocery industry has evolved in an age of cheap energy, based on abundant fossil fuels. Use of energy in primary production, processing, refrigeration and logistics is lavish, leaving the industry vulnerable to any shortfall in fossil fuel supplies.
Oil prices have risen by over 420% in the last decade, gas by 310% and coal by 210% (source: IMF). Further price rises are likely as current reserves are exhausted and demand continues to grow, with no end in sight.
Carbon costing will become a reality for all grocery businesses operating in the EU by 2012 at the latest even earlier in the UK. This means that all businesses will pay additional charges for energy use which is not built into current operating models.
Adapting to a new environment, where energy is more costly and supply more erratic is likely to be challenging for all participants in the supply chain, not least for consumers themselves. Change is critical and it is becoming increasingly clear that, whatever the future holds, the grocery industry cannot continue in its current form.
Taken from IGDs new online guide to the FMCG supply chain, Supply Chain Analysis, this research represents an important opportunity to understand how rising energy prices will impact on supply chain activity for all food and grocery businesses, including your own.
| Why do you need this report? |
|
Rising Energy Costs: Will They Break Your Supply Chain? will help you to:
| 1. |
Anticipate how predicted increases in energy costs will affect your business and the food and grocery sector in general. |
| 2. |
Understand the factors that will further increase energy costs and how these will impact your business. |
| 3. |
Identify areas in your business that you need to change in order to minimise the impact of increasing energy costs. |
| 4. |
Reflect on case studies from suppliers, retailers and logistics companies to ensure that you are implementing best practice within your own business to minimise your energy costs as much as possible. |
Background
The reasons for energy price inflation are well documented, but IGD explores:
Global energy markets
Grocery market development
The significance of carbon costing
New business costs |
Drivers of Change
What is causing this seismic shift? |
Benefits & Concerns
Although rising energy costs present more challenges than opportunities, there are some surprising wins. This chapter dissects the supply chain piece by piece:
Agriculture
Manufacturers
The significance of carbon costing
Wholesalers
Retailers
Third Party Logistics Providers (3PLs)
Consumers |
Best Practice
Considers a range of different responses to rising energy costs:
Capital costs
Lean thinking
Whiplash vs. flow through
What does success look like?
Possible approaches |
The Future
The supply chain of the future will look very different from today; is it conceivable that rising energy costs will fracture the developing global food trading system?
Production dominant scenario
Energy dominant scenario |
Business Imperatives
How should businesses prepare for a new era of high-cost energy?
General approach
Business appreciation |
|
|
| Request free sample extract |
|
To receive a free PDF containing a sample extract from this report, complete the form here
| This research has been taken from Supply Chain Analysis, IGDs new online guide to the FMCG supply chain. It is available as a single-user PDF or as part of a subscription to the full Supply Chain Analysis services. Research available through the service includes: |
|
The report is available in PDF format on a CD and is despatched in two to three working days.
