Above the Fold: Supply Chain Logistics News (July 8, 2022)

It’s time to unplug and get off the grid. No email, no social media, no television. Just music and books and the great outdoors.

Before I disconnect and head to the land of ice, here’s the supply chain and logistics news that caught my attention this week:

Walmart to Suppliers: You Gotta Pay More for Fuel and Pickups

“Walmart Inc. said it would charge some of its suppliers a new fee to transport goods to its warehouses and stores, according to a memo viewed by The Wall Street Journal, the latest example of how businesses are looking to offset rising costs for things such as transportation and fuel,” reports Sarah Nassauer in the Wall Street Journal. 

Back in May, we asked members of our Indago supply chain research community, “What actions, if any, are you taking to mitigate the impact of high fuel prices?” Looking at the results of the survey, Walmart’s actions are not surprising.

“Fuel has traditionally been an expected pass-through charge [from the carriers], with the costs rising and hitting all areas of our logistics, we have no choice but to re-evaluate how we handle these charges and if there are ways for us to pass them on to our customers or mitigate them through more efficient shipping or lower cost services,” said one Indago supply chain executive.

If you don’t want to pass the added costs on to customers, then pass them up to suppliers instead. At the end of the day, however, we all pay for it one way or another.

And with that, I’m out of time. We’ll be on holiday next week, but I’m sure it will be a slow and boring week for supply chain and logistics news. I guess I’ll find out when I get back on 7/18. 

Until then, eigið góða helgi!

Song of the Week: “Hyperballad” by Björk