Fuel Costs Hit Distributors' Bottom Lines - Modern Distribution Management

Fuel Costs Hit Distributors’ Bottom Lines

Fuel costs have hit a record high in the past month, staying above $3 a gallon, and that is causing no shortage of headaches in the distribution world. Past surveys done by MDM in collaboration with Channel Marketing Group, Raleigh, NC, indicate that many distributors simply pass on the increased fuel costs to customers. (Stem the Tide: Rising Fuel Costs, MDM, May 25, 2006)

Distributors have implemented a fuel surcharge or service change for deliveries, increased existing charges, or implemented a delivery charge on orders under a minimum-dollar value. Some are integrating the added cost into the product price.

In light of higher fuel costs, look at your current minimum order size. Should it be …

Fuel costs have hit a record high in the past month, staying above $3 a gallon, and that is causing no shortage of headaches in the distribution world. Past surveys done by MDM in collaboration with Channel Marketing Group, Raleigh, NC, indicate that many distributors simply pass on the increased fuel costs to customers. (Stem the Tide: Rising Fuel Costs, MDM, May 25, 2006)

Distributors have implemented a fuel surcharge or service change for deliveries, increased existing charges, or implemented a delivery charge on orders under a minimum-dollar value. Some are integrating the added cost into the product price.

In light of higher fuel costs, look at your current minimum order size. Should it be …

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