Rising Oil Prices Will Change DC Locations, Hours, Expert Predicts
Logistics expert Chuck Taylor of Awake! Consulting predicts eight ways rising oil prices will affect distribution center and warehouse operations in the months to come.
(Boonton, NJ, May 19, 2011) The spike in oil prices in recent months renews fears that petrol costs will change the way distribution centers operate.
Oil prices peaked in July 2008, then collapsed over the next nine months. But fuel has soared since March 2009, and oil again crossed the $100-a-barrel mark in March of this year. Logistics expert Chuck Taylor of Awake! Consulting, predicts oil will reach $110 to $120 a barrel by midyear.
"The general trend is going to be up," Taylor says. "It's a finite resource, and it's getting harder to find."
In the May issue of Distribution Center Management newsletter, Taylor discusses eight ways rising oil prices will affect DCs. This includes opening for night hours.
Traffic jams kill fuel economy, he notes. As gas prices rise, it's likely that logistics managers will put trucks on the road at night rather than during rush hour.
While DCs typically see the most activity during the day, that will change as nighttime pick-ups and deliveries become the norm.
The May issue also includes articles on integrating the disabled into the DC workforce, and using utility rebates to take the sting out of purchasing new lighting.
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For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.