Repercussions of $4 Gas

MSNBC.com reports that gas prices have reached at least $4 for two metropolitan cities (boy, I’m glad I don’t live in Chicago or Long Island!) and the national average continues to rise. Somewhere, bicycle shops, walking shoe retailers, and public transportation officials rejoice. The rest of us are left grumbling at the pump.

Filling up on an individual level has become painful enough, but I can’t even begin to image the pain being felt by smaller companies who rely on trucks to deliver their products and their customers who are being subjected to higher shipping costs and fuel surcharges.

Working for such a company left me a little curious as to how F.C. Dadson and our customers were coping with the increases. So I asked around. Turns out this isn’t a new obstacle and we’ve already taken a number a steps to reorganize our shipping program to make it more cost-effective (go us!).

One of our biggest steps –and probably the most interesting for our customers- is that we’ve started to fill our trailers with multiple orders that are headed in the same direction. Called “batching” by those in the know, this initiative has been mutually beneficial for us and our customers. Here’s how:

• Customers are able to essentially pay only for the space they use as opposed to an entire trailer and are still able to enjoy our other delivery benefits (i.e., loading and unloading, insuring shipments, etc.).

• F.C. Dadson is now able to send smaller orders more efficiently.

And fewer trucks and trailers are needed so the Earth benefits as well! A win-win-win for everyone!

Of course there are some challenges like coordinating schedules and needing a little flexibility in delivery dates, but for the most part, our customers have been willing to bear with us in order to reap the savings.

It’s all pretty cool, and I have a feeling that it’s only the beginning. Soaring gas prices are forcing us all to think a little more about how we use fuel. But that’s not necessarily a bad thing, is it? In the case of F.C. Dadson, I’ll argue that we’ll end up better because of it. Sure, $4 gas will have its repercussions, but they might not all be negative.