b'From the transportation industry, Prentice says theres a lot of places problems can arise due to long distances to get supply to the coast. The industry cant predict where problems are going to pop up. We also have a situation right now where oil prices are very high, and the system has been short of oil for various reasons, he says. We see a lot more oil moving by rail than would otherwise be the case. The rise in oil prices isnt the only issue, though. Theres also been a spike in diesel fuel priceswhileBarry Prentice is professor ofMichelle Klieger is owner of most of your average consumers will be more concernedsupply chain management at theStratagerm Consulting.with high gas prices, Prentice says its important toUniversity of Manitoba. Photo remember the world runs on diesel. courtesy Asper School of BusinessEquipment for the fields, the trucks, aviation, the ships its all run by diesel, he says. Ive already seen evidence that the diesel price and the gasoline price are going to widen. When you crack a barrel of crude oil, you get a certain proportion of diesel, a certain portion of gasoline. Were going to have a demand for more diesel, which means were probably going to get more gasoline.OIL PRICES ARE COMING DOWN, AND ITS NOT We may see lower gasoline prices but rising diesel prices which will have a bigger impact on the supply chain,BECAUSE THE OIL COMPANIES FINALLY FOUND both for ocean freight but also for tactors and combines. As there continues to be uncertainty around the future,THEIR HEART AND DECIDED THEY WERE CHARGING the positive note is that consumers, from agriculture to the greater society, are getting used to a world withTOO MUCHDEMAND IS LACKING.supply chain disruptions. Barry PrenticeWith a solid business plan and a little forethought, businesses are able to continue on as normal.Businesses are starting to think more about resiliency and building independence, says Klieger. That might mean companies source 80 per cent of their material abroad and 20 per cent at home, so theyre always guar-anteed to have some access. But, Klieger says companies and individuals are chang-ing their behaviour and thought process as well. We are all starting to change our behaviour and build in that slack and keep some inventory, she says. All of that is the result of resiliency. It can be expensive, but it will smooth out some of the bumps in 2023.In addition, Prentice says to keep an eye on interest rates as we enter 2023. While you might think they wont have an impact on you, interest rates have a broad effect on the worlds economy. Oil prices are coming down, and its not because the oil companies finally found their heart and decided they were charging too muchdemand is lacking, he says. Were still in the momentum of that past period and the interest rate impact is still starting to take effect. Theres going to be another interest rate rise in September. Amongst other things, this is going to make holdingWant to hear the rest of the conversation? Make sure to watch atinventories more expensive.germination.ca/the-world-is-getting-used-to-abnormal-supply-chains/NOVEMBER 2022GERMINATION.CA 29'