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Supply Chain Routes Face Scrutiny as Fuel Rises

DALLAS-Rumblings are being heard companies are starting to reevaluate distribution channels and supply routes. It's not a trend yet, but there are changes in the wind.

By Connie Gore | Updated on June 27, 2008

DALLAS-With crude oil climbing past $140 per barrel, US companies are beginning to discuss if changes to their distribution channels and supply chains are warranted to offset increased operating costs. Experts in Dallas/Fort Worth say rumblings are just now starting, making it far from being a trend as yet.

Thomas O. Pearson and Chris Teesdale, executive vice presidents for Colliers International in Dallas, confirms for GlobeSt.com that companies are starting to reassess their strategies, which could be a windfall for Dallas/Fort Worth and third-party logistics providers. For some companies, their push in recent years toward centralized distribution centers could fall victim to rising diesel fuel prices, driving a possible return to numerous locations to combat fuel costs and keep wares within closer striking distances of customers.

“There is no question that there is change afoot with virtually every company right now,” Pearson says. “But, every company is different. It will be based on business, where the goods are coming from and where the stores are located.”

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