Energy supply a concern in global sourcing

Buyers taking more notice of overseas energy supply

By Dave Hannon -- Purchasing, 4/26/2007 2:11:00 PM

One of the multitude of concerns buyers need to consider in global sourcing is the price and supply of energy products in the region being sourced from. Establishing supply chains in a given region could prove very costly if the energy prices in that region spike dramatically.

According to a recent Bloomberg article, China’s deputy director of economic operations at the National Development and Reform Commission Zhu Hongren recently said China’s southern and central regions may experience sporadic energy shortfalls during peak times of consumption as industrial production activities increase in the second quarter. The supply tightness is easing, he said.

And in India, Montek Singh Ahluwalia, deputy chairman of India’s Planning Commission, said increased energy availability was required to fuel an expected sustainable economic growth of 9% over the next five years. India recently adopted a market-determined pricing system for petroleum products, which could impact pricing.

WHAT DO YOU THINK?

Purchasing.com is currently gathering up buyers’ thoughts on how energy prices impact global sourcing decisions. Please take a minute to fill out the online survey form here. Results of the survey will be posted on Purchasing.com when complete.