Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

Oil prices will rise eventually

I have long been encouraging a reduction of oil consumption in global supply chains. While I think that oil will be readily available into the foreseeable future, its price will rise as both demand and extraction costs increase over time.

By ·

This column represents my annual update on oil and the supply chain. I am dedicating it to the memory of Jay W. Forrester who passed away in November. Some managers will know who he was and what he accomplished regarding supply chain management. For others, they should think of the educational “beer game” that they have most likely played. It simulates how a lack of downstream and upstream information causes excess and volatile inventories to be held by trading partners all along a supply chain. Second, regarding oil he was the father of System Dynamics that dealt with using simulation to understand big systems, such as the impact of CO2 emissions on the global environment.

The passing of a thought leader According to Wikipedia, Forrester was a “pioneering American computer engineer and systems scientist. He was a professor at the MIT Sloan School of Management. Forrester is known as the founder of system dynamics, which deals with the simulation of interactions between objects in dynamic systems.” In 1961, “arising from a project with General Electric, he wrote about the expanding effects down the supply chains due to fluctuations in demand, thenceforth known as the ‘Forrester effect’ or bullwhip effect.” This is the effect that many of us first learned about by playing the “beer game.”

Forrester expanded his purview to urban issues and in 1969 wrote a book, “Urban Dynamics,” which sparked an ongoing debate on the feasibility of modeling broader social problems. He later met with the Club of Rome to discuss issues surrounding global sustainability and published “World Dynamics,” which “took on modeling the complex interactions of the world economy, population and ecology, which was controversial.” This book, published in 1971, along with “Limits to Growth,” which was published the following year by Club members, portended a few scary future scenarios involving limited resources to support an unlimited growth in the world’s population. Both started the field of global modeling and led to the models we read about today simulating climate changes and supporting the need to limit CO2 emissions by reducing the use of carbon-based energy. Hence, Forrester’s relevance to this oil update

This complete article is available to subscribers only.
Click on Log In Now at the top of this article for full access.
Or, Start your PLUS+ subscription for instant access.
By ·
Download Article PDF

This column represents my annual update on oil and the supply chain. I am dedicating it to the memory of Jay W. Forrester who passed away in November. Some managers will know who he was and what he accomplished regarding supply chain management. For others, they should think of the educational “beer game” that they have most likely played. It simulates how a lack of downstream and upstream information causes excess and volatile inventories to be held by trading partners all along a supply chain. Second, regarding oil he was the father of System Dynamics that dealt with using simulation to understand big systems, such as the impact of CO2 emissions on the global environment.

The passing of a thought leader According to Wikipedia, Forrester was a “pioneering American computer engineer and systems scientist. He was a professor at the MIT Sloan School of Management. Forrester is known as the founder of system dynamics, which deals with the simulation of interactions between objects in dynamic systems.” In 1961, “arising from a project with General Electric, he wrote about the expanding effects down the supply chains due to fluctuations in demand, thenceforth known as the ‘Forrester effect’ or bullwhip effect.” This is the effect that many of us first learned about by playing the “beer game.”

Forrester expanded his purview to urban issues and in 1969 wrote a book, “Urban Dynamics,” which sparked an ongoing debate on the feasibility of modeling broader social problems. He later met with the Club of Rome to discuss issues surrounding global sustainability and published “World Dynamics,” which “took on modeling the complex interactions of the world economy, population and ecology, which was controversial.” This book, published in 1971, along with “Limits to Growth,” which was published the following year by Club members, portended a few scary future scenarios involving limited resources to support an unlimited growth in the world’s population. Both started the field of global modeling and led to the models we read about today simulating climate changes and supporting the need to limit CO2 emissions by reducing the use of carbon-based energy. Hence, Forrester’s relevance to this oil update.

SUBSCRIBERS: Click here to download PDF of the full article.

 



Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Latest Whitepaper
FREE White Paper: Dive into the Minds of 1,500 Industrial Buyers
The advent of the Industry 4.0 brought with it the next phase in the digitization of the manufacturing sector.
Download Today!
From the May-June 2017
Too often, working capital pressures roll over supplier relationships without regard for what happens to supply chain risk. But now that new supply chain financing tools and techniques are proliferating, companies have a fresh chance to implement a coherent business strategy that balances the legitimate concerns of the buyer’s finance department with those of the company’s supply chain management experts.
How they did it: Supplier Trust at General Motors
Supply Chain Negotiations: Creating Leverage
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
Supplier Performance Management
You've negotiated a contract with your supplier, signed the deal, and then what? In this webinar, procurement expert Mark Trowbridge will explore 10 places where additional value can be found in a company's highest-value provider relationships throughout the supply chain - AFTER the contract has been signed.
Register Today!
EDITORS' PICKS
Fitch Ratings Issues Cautionary Study on Ocean Cargo Supply Chains and Ports
According to a new report, traffic growth in the ports sector is likely to remain well below...
New Study Says Global Ocean Cargo Industry at the “Tipping Point” of Digitization
Study Finds Huge Opportunities to Improve Performance and Customer Service Through Better Use of...

APICS Addresses SCM Talent Gap With Expanded Supply Chain Stem Program
K-12 program teaches supply chain concepts with interactive games, provides resources for teachers...
Global 3PL Market Report Includes Estimates for 190 Countries in 2017
2016 was a “mediocre year” for third-party logistics in the U.S., said Armstrong, with net...