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* Rising Energy Costs: Will They Break Your Supply Chain? Date Published: 03/03/2008 *
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Rising Energy Costs  

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IGD’s guide to the impact of rising world energy prices on the food and grocery supply chain

  
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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 IGD’s 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.

 
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Rising Energy Costs: Will They Break Your Supply Chain? will help you to:

Anticipate how predicted increases in energy costs will affect your business and the food and grocery sector in general

Understand the factors that will further increase energy costs and how these will impact your business

Identify areas in your business that you need to change in order to minimise the impact of increasing energy costs

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
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Additional Information:

All reports are subject to VAT at 15%. CDs will be delivered by post in two to three working days from date of ordering. This report is promoted by IGD as agent for IGD Services Ltd. Cheques should be made payable to IGD Services Ltd.
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