The acute shortage of diesel fuel might appear an ideal pressure point to push for more sustainable form of transport in the supply chain, but it also highlights just how complex and fragile the supply chain is.
Dr Jonathan Owens, operations and supply chain expert, University of Salford, comments: “Diesel remains critical to the movement of goods. The relationship is straightforward: higher diesel prices increase transport costs, placing pressure on business margins and ultimately consumer prices. In the end, it is likely to be the consumer who pays.”
The far-reaching implications are that companies and suppliers will need to rethink resilience, from more local supply to electrification, and indeed energy generation.
Owens continues: “The wider issue is therefore one of supply-chain resilience. Businesses need to understand not only their direct diesel consumption but also their indirect exposure through suppliers, logistics providers, and contractors. Emergency stocks can provide valuable breathing space, but they are a short-term intervention rather than a long-term solution.






Recent Stories