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Implications of Increasing Fuel Costs for Supply Chain Strategy

Author

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  • Beata Milewska

    (Institute of Management and Quality, WSB University in Poznan, Powstańców Wielkopolskich 5, 61-895 Poznan, Poland)

  • Dariusz Milewski

    (Institute of Management, University of Szczecin, 8 Cukrowa St., 71-004 Szczecin, Poland)

Abstract

The supply chain strategy has a significant impact on energy consumption. This strategy determines the location of individual links in the chain (suppliers, producers, distributors), which affects the costs of logistics processes, including, in particular, transport processes. Currently, due to the rapid increase in fuel prices, the issue of energy consumption in the supply chains is becoming increasingly important. The aim of the article is to present the impact of the increase in fuel and energy costs on the costs of logistics processes and, as a result, on the profitability of different supply chain strategies. The profitability of changing from global to local sources of supply as a result of rising energy prices was especially taken into account. The article presents the results of interviews from enterprises carried out by the authors and the results of simulations carried out using a model developed by the authors. The need to conduct such research resulted from the existing research gap and the need to take into account contemporary changes and conditions. The research was conducted in a period of rapid increase in fuel and energy costs. Both the research conducted by the method of interviews, as well as the calculations and simulations indicated that despite a very large increase in rates for transport services, especially in maritime transport, it is still not profitable to relocate production from the Far East to Europe.

Suggested Citation

  • Beata Milewska & Dariusz Milewski, 2022. "Implications of Increasing Fuel Costs for Supply Chain Strategy," Energies, MDPI, vol. 15(19), pages 1-14, September.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:19:p:6934-:d:921729
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    References listed on IDEAS

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    Cited by:

    1. Beata Milewska, 2022. "The Impact of Instability in the Business Environment on the Competitiveness of Enterprises Using the Example of the Apparel Industry," Sustainability, MDPI, vol. 14(22), pages 1-23, November.
    2. Adrian Eugen Cioabla & Francisc Popescu & Timotei Bogdan Bacos, 2022. "Experimental Analysis for Determining Potential of Wastewater Sludge Mixed with Degraded Biomass as Substrates for Biogas Production," Energies, MDPI, vol. 15(22), pages 1-9, November.
    3. Beata Milewska & Dariusz Milewski, 2023. "The Impact of Energy Consumption Costs on the Profitability of Production Companies in Poland in the Context of the Energy Crisis," Energies, MDPI, vol. 16(18), pages 1-19, September.
    4. Gudivada Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "Pythagorean Fuzzy Storage Capacity with Controllable Carbon Emission Incorporating Green Technology Investment on a Two-Depository System," Energies, MDPI, vol. 15(23), pages 1-34, November.
    5. Cenk Tufan & Şemsettin Çiğdem & Yunus Kılıç & Gökçen Sayar, 2024. "Agility and Resilience in Supply Chains: Investigating Their Roles in Enhancing Financial Performance," Sustainability, MDPI, vol. 16(17), pages 1-21, September.

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