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High Energy Costs Cause Changes In Supply Chain Strategies

Supply chain managers are under the gun to rethink strategies to combat increasing energy costs. According to a survey conducted Oct. 10-14 by Industry Directions Inc., senior manufacturing executives are reevaluating their operating strategies for contract manufacturing as well.

"... nearly half of all companies now say they are reconsidering whether and how to implement offshore manufacturing, once seen as a panacea for controlling costs," said William Brandel, principal at Boston-based Industry Directions, a research firm.

Over three-quarters (77%) of the executives surveyed indicated dramatic changes in energy markets are driving them to focus on supply chain issues. While both process and discrete manufacturers view logistics and sourcing as top areas of concern, process manufacturers are reviewing forecasting, production and inventory management.

Free copies of this survey report are available at:

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