Web Edition
Supply Positioning & Infrastructure
View Designed EditionOriginal publication artworkSupply Price Is Not Supply Positioning
There’s a major difference between having propane available and having strategic access to propane.
The companies that perform best during supply pressure usually are not reacting in the moment. They prepared their infrastructure, positioning, and flexibility long before the market tightened.
Many operational problems are not really operational problems. They are infrastructure and supply-chain positioning problems.
Questions Worth Thinking About
- How flexible is your current supply infrastructure?
- What happens if your primary terminal tightens tomorrow?
- How many pennies per gallon are hidden inside your transportation model?
- Are you paying for distance instead of positioning?
- How dependent is your operation on a single supply path?
- Could your company reposition supply quickly during a difficult winter?
- Is your supply chain designed intentionally—or simply inherited over time?
- Are you relying on infrastructure you control, or infrastructure you simply use?
Where Evolving Operations Look Next
The propane companies that continue evolving will likely think differently about:
- Supply access: Access to multiple supply sources creates options.
- Transportation exposure: Every mile adds cost; optimize the transportation model.
- Rail access and positioning: Rail access opens new supply points and cost advantages.
- Supply-chain flexibility: Flexibility helps move supply where and when it is needed.
- Throughput capacity: Throughput opportunities create margin and leverage.
- Strategic logistics: Strategic logistics reduce risk and increase resilience.
