Diesel Powers More Than Just Trucks

The Hidden Reasons Behind Rising Prices.

You may have heard that inflation is coming down. So why are you still paying more at the checkout counter for everything from asparagus to zinc tablets? One of the less talked about reasons is the rising cost of transportation, especially diesel fuel.

One of the main factors driving up transportation costs is the price of diesel fuel, which has been volatile since the COVID pandemic. In early 2021, a gallon of fuel averaged $2.85 and shot up to $5.75 in June of 2022. It has since come down, but it is still significantly higher than it was before the pandemic. Today, diesel averages $4.10 (5/29/2023).

To cope with the higher transportation costs, retailers are looking for ways to share the burden with their vendors. For instance, Walmart and Amazon have recently announced new fees based on the daily price of diesel fuel and the cost of goods received. Walmart says the new fees are necessary to offset the rising cost of transportation. Vendors continue to express frustration with the new fees and penalties, arguing that they are already struggling with their own cost pressures.

What the Public Thinks

Most people seem to be buying the narrative that manufacturers are to blame for rising prices. A survey conducted by the Pew Research Center in March 2022 found that 63% of Americans believe that manufacturers are mostly to blame for rising prices. Another survey, conducted by the National Retail Federation in April 2022, found that 64% of Americans believe that manufacturers are mostly to blame for rising prices.

However, if you look further up the supply chain, you'll see that port congestion, container shortages, and rising shipping rates are also making it a challenging time to be a vendor or manufacturer. It seems likely that consumers may have less tolerance for higher prices at the checkout counter in the future.

How HRG Can Help

The vendors of the major retailers continue to work toward developing strategies to deal with tighter OTIF rules and other penalty programs. It's increasingly complicated and burdensome to keep an eye on every order and shipment to minimize penalties. HRG understands. We have staff that know the business. Many have come to us from those major retailers you may be working with today.

Despite what others may say, it's not enough to spot mistakes, invalid deductions, and wrongly calculated penalties. Instead of throwing the mistakes back in your lap, our team will lead you through the entire process so that at the end of the day that money goes back into your pocket.

To find out more about HRG, please contact sales@hrg-audit.com or check our company's website HRG-Audit.com. The Hidden Reasons Behind Rising Prices.

You may have heard that inflation is coming down. So why are you still paying more at the checkout counter for everything from asparagus to zinc tablets? One of the less talked about reasons is the rising cost of transportation, especially diesel fuel.

One of the main factors driving up transportation costs is the price of diesel fuel, which has been volatile since the COVID pandemic. In early 2021, a gallon of fuel averaged $2.85 and shot up to $5.75 in June of 2022. It has since come down, but it is still significantly higher than it was before the pandemic. Today, diesel averages $4.10 (5/29/2023).

To cope with the higher transportation costs, retailers are looking for ways to share the burden with their vendors. For instance, Walmart and Amazon have recently announced new fees based on the daily price of diesel fuel and the cost of goods received. Walmart says the new fees are necessary to offset the rising cost of transportation. Vendors continue to express frustration with the new fees and penalties, arguing that they are already struggling with their own cost pressures.

What the Public Thinks

Most people seem to be buying the narrative that manufacturers are to blame for rising prices. A survey conducted by the Pew Research Center in March 2022 found that 63% of Americans believe that manufacturers are mostly to blame for rising prices. Another survey, conducted by the National Retail Federation in April 2022, found that 64% of Americans believe that manufacturers are mostly to blame for rising prices.

However, if you look further up the supply chain, you'll see that port congestion, container shortages, and rising shipping rates are also making it a challenging time to be a vendor or manufacturer. It seems likely that consumers may have less tolerance for higher prices at the checkout counter in the future.

How HRG Can Help

The vendors of the major retailers continue to work toward developing strategies to deal with tighter OTIF rules and other penalty programs. It's increasingly complicated and burdensome to keep an eye on every order and shipment to minimize penalties. HRG understands. We have staff that know the business. Many have come to us from those major retailers you may be working with today.

Despite what others may say, it's not enough to spot mistakes, invalid deductions, and wrongly calculated penalties. Instead of throwing the mistakes back in your lap, our team will lead you through the entire process so that at the end of the day that money goes back into your pocket.

To find out more about HRG, please contact sales@hrg-audit.com or check our company's website HRG-Audit.com.