In a early edition of PurchTips entitled \u201cAutopsies of Dead Supplier Relationships,\u201d I discussed how opportunistic behavior can drive a buyer and supplier apart forever.<\/p>\n
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Today, we are seeing this happen on a macroeconomic level with gas prices.<\/p>\n
The oil companies are indeed pushing the limits with their prices. And profiting, as I described in my earlier post \u201cGas Prices, Supply and Demand.\u201d<\/p>\n
But I believe that they are killing their future opportunities. They have awoken a sleeping giant.<\/p>\n
I believe that consumers will conserve. Maybe not today, or tomorrow, or next week. But wait \u2019til their next vehicle purchases. SUV\u2019s aren\u2019t flying off the lot anymore. And they and their low MPG brethren won\u2019t for a long time.<\/p>\n
And corporate purchasing will respond as well. Alternative fuels, hybrid vehicles, and the like are finding their ways into the sourcing strategy of many a professional buyer.<\/p>\n
Imagine huge fuel consumers with strong purchasing departments like the US Postal Service and Wal-Mart found a way not to be so dependent on gasoline. How much fuel do they purchase? What will happen to oil companies\u2019 profits a few years from now if these and other big players say \u201cenough is enough?\u201d<\/p>\n
Sure, these big players play the forward buying\/hedging game, but they are still seeing cost increases.<\/p>\n
I believe that purchasers (both consumer and corporate) are going to respond with a massive adjustment to the demand part of the equation. And oil companies\u2019 profits will be a casualty of that response.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a early edition of PurchTips entitled \u201cAutopsies of Dead […]<\/p>\n","protected":false},"author":12,"featured_media":4090,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n