Gaining a Supply Chain Edge
Jim Tompkins

Investigate Transportation Fuel Alternatives for Your Company

Did you know that more than 80 percent of cargo in the U.S. is transported by diesel power? Additionally, almost all heavy duty trucks are diesel-powered, which has me thinking more about transportation in supply chains.

Earlier this year, ExxonMobil predicted that diesel will surpass gasoline as the number one global transportation fuel by the year 2020 (more here). As transportation fuel needs change, there is a strong push to investigate alternative fuel options.

In its 2013 Global Responsibility Report, Walmart noted that it has been working with alternative fuels since 1989, specifically liquefied natural gas (LNG) and renewable diesel fuel. Additionally, the Diesel Technology Forum recently announced a showcase of new technology diesel advancements in heavy-duty trucks and light-duty passenger vehicles. Advancements in diesel technology play a major role in improving fuel efficiency and reducing vehicle emissions.

What does this mean for businesses like yours?

While most companies have not been looking at the fuel source prospects for very long, many already have active programs in place. By 2020, I predict we will see a strong number of alternative fuel vehicles on the road. The economics will soon become more favorable and hopefully, greenhouse gas emissions will be greatly impacted. Companies that are seriously pursuing alternative fuels will see both cost and environmental benefits.

I’d like to hear what you think about this increasingly popular topic. Tweet me (@jimtompkins) using the hashtag #talksupplychain to share your opinion and experience with alternative fuel sources.

Do you agree with the growth predictions? Is your company investigating alternative fuel sources and have you seen any direct benefits so far? If you have not looked into alternatives, what has kept you from starting?

If you are interested in learning more about transportation fuel alternatives, you won’t want to miss the 2013 Supply Chain Leadership Forum. This topic and more will be highlighted at this year’s forum, August 26-28 in Atlanta. Click here to register and learn more.


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