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ILRI Supply Chain Insights Global Summit 2013 - Supply Chain Financial Benchmarkin. The global
nature of the supply chain in the oil industry forces oil companies to deal with many different
cultures. Empirical evidence is limited to approximately half of the articles, share of which is
frequently generated by quantitative approaches. Enterprise Resource System (ERP) a Comparative
Paper. For the over two decades, the company had facing some problem in the increasing of
production cost, increasing importance of e-commerce, increasing levels of outsourcing and
competitive in the industry etc. The supply of oil and gas has become a necessity for the national
economies and shows a growing demand tendency (Hilmola, 2011; Tierney, 2004; Appendix 1;
Appendix 2). A focus on both will give more insights on how trust plays an important role in buyer-
supplier relationship. The main goals are the same like in other industries, deliver the right product to
the users in the right time and at the right price. These materials are heated in a furnace to transform
them into molten glass that is flowed into flat glass sheets. Such implementation from a planning
process is highly required. When the bids are obtained, the business critically examines each supplier
bid against set standards and also against other potential suppliers. Additionally, it is also crucial
identification of compatibility of essential technologies, contributions of different partners within
supply chain, systems of payments utilized as well as different measurements on supply chain
performance (Cachon, 2005). The distribution center managers, not knowing the actual store
demand, yet seeing the increase in orders, placed even larger orders with the wholesaler to ensure
product availability. MCC had paid more than 50% of the total pre-launch, and infrastructural,
product designing investment. It therefore requires proper analysis, good and measurable standards,
information from potential suppliers and evaluation for selection of the most ideal supplier.
Customers frequently threaten to take away their programs if suppliers don’t comply. Beije (2010)
also adds that the definition of qualitative research contains three key components. In the second
phase, there is analysis of the information on market demand, selected strategy for the supply chain
and position on joint collaborations (Stevens, 2003). For instance if MOL Group plans for 20 years
ahead, it concerns more about strategic decisions such as opening a new plant. This is a very
rudimentary but important stage in supply chain management because it matches the resources
available for the purchase with the strategy of the organisation and then carves out an ideal supplier.
Till yet, the current arrangement of MCC is working out very well. Further the characteristics of
supply chain in the oil industry, its nature and characteristics were briefly discussed regarding its
complexity, flexibility and vertical integration. The bullwhip effect has received enormous attention
in the research literature. Beyond that it emphasises cost efficiency in the interest of profitability.
Figure 2.1 Typical Oil Supply Chain (Ribas et al., 2011) 16. 10. In the end, firms often find that we
can’t always supply whatever it is the customers want. This will include costs like: Setting up the
Internet site, Outsourcing the software company who will provide services like database
management, Partnering with Internet service Providers, Purchasing new hardware required, Training
the existing staff, Hiring new employees. Pri- mary data was collected through semi structured
interviews via telephone and the internet with the company’s staff. Second, the Internet and
associated e-Business initiatives are forcing managers to rethink their supply-chain strategies. Due to
the nature of the research, which is based on conducting the research using qualitative research
approach, which needs to make a deep investigation the authors discovered and applied interviews as
the relevant data collection method.
The horizontal axle demonstrates the integrated nature of the supply chain which is achieved by IT,
constant communication and collaboration between the funtions. This will include the special
knowledge the purchaser has acquired, the training he has received, the skills he has developed and
the seller networking he commands. Anderson (2003) points out that since the expansion trend of oil
companies through mergers, complexity of the globalised oil supply chain increased. Mentzer et al.
(2001) emphasize that cooperation has to happen at all management level involving cross-functional
coordination across the supply chain. This diagram helps the readers to easily understand the
information. Each of the other factors for the optimization is strongly linked to the IT, actually they
are built around it and without IT they lose their capabilities of optimizing. Sustainability is among
the global trends affecting supply chain in the world today. It procures from over 30000 suppliers and
deals directly with less than a 1000. For Later 100% 100% found this document useful, Mark this
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some cases, the technologies and approaches for enhancing supply-chain competitiveness have been
the subject corporate and public debate: supply-chain complexity leading to new risks of disruption;
supply-chain efficiency generating complaints of price discrimination; low-cost sourcing creating job
migration. As many oil companies are owned by their national states, to collaborate with
governments or with their petroleum authorities is common which can enhance good relationship and
trust between buyers and suppliers. Thus, if a customer wants a higher degree of customization, he
will have to place an order through Smart centre, which will be relayed to the production facility and
the order would be implemented and delivery would be made in the standard two to three weeks.
With the increasing supply-chain demands of product variety and customization, there is an
increasing body of research available. Surveillance: Even though a high degree of participation is
allowed to the suppliers but the supplier teams work under an MCC assigned coach. This is 100%
legal. You may not submit downloaded papers as your own, that is cheating. Also you. Many
organizations face the challenges of managing and empowering their employees to actively
participate in decision making. Generally, it is based upon the principle of finding one’. Gross crude
oil reserves (million barrels (MM bbl)): 271.0. The methodology of carrying the empirical study out is
based on qualitative research. In this context, the current research study has been undertaken to
understand the percolation of SCM within the Indian academia and industries. In this case the article
used provides necessary data as provided by participants and partners through the entire research
program with consideration on the rights of respondents and actualization experimental data
applicable (Shen and Daskin, 2005). In 1903, the company started by Henry Ford produced 1,708
cars. How much capacity should be installed at each of these sites. Key words: Supply chain
management, Supply chain optimization, Oil industry. It includes critical decisions related to getting
the products from a firm’s factories all the way into the customers’ hands. The business' main
suppliers are Brakes, Meadow Fairfax and Trade team (Andersen, Strategic Supply Chain
Management: Goose at the Garden pub in Newcastle BY YOU YOUR ACADEMIC
ORGANISATION HERE HERE HERE Strategic Supply Chain Management: Goose at the Garden
pub in Newcastle Business summaryGoose at the Garden is the largest pub in Newcastle. Dealers and
Agents: another issue that might arise is, that even though MCC has invested in dealerships, but the
function of dealers basically is to distribute the product and instigate sales. The latest among them
being terrorism that knows no boundaries and respects none. What kinds of products and services
are going to be supported through the supply chain. Phase 3. Analyzing and finding the causal
factors as a foundation for a corrective or developmental action.
Deere would have to expend large amounts of time and resources to identify, secure, and develop a
new supplier. It will use the risk analysis and management framework to identify the risks in the
process and make recommendations on how the issues found there can be reduced. What
recommendations should the team make to the project manager? All else being equal, firms would
rather hold less inventory. As opposed to traditional manufacturing-oriented supply chains, service
supply chains are more complicated due to the inability to store inventory. Supply Chain
Management can also be described as the flow of Goods or services from suppliers to the
manufacturers then to the distributors and retailers and finally to the customers. Risk management of
any supply chain is an overly complicated subject. Ballou and Masters (1999) examine several
software products that provide optimization tools for solving industrial-location problems. On the
Ford Web sites, consumers can customs configure a new vehicle, view up-to-date manufacturer-
suggested prices, place an order, and arrange for delivery to a nearby dealership. This is 100% legal.
You may not submit downloaded papers as your own, that is cheating. Also you. The retail store has
not only successfully operated in. However, unlike the traditional warehousing functions the Supply
Chain Management functions performed on a digital platform require only two parties i. On
international level the communication frequently occurs through video conference to coordinate the
whole chain efficiently on a group level (Sz. Thus, the manufacturer is responsible for both its own
inventory and the inventory stored at its customers’ distribution centers. The chocolate supply chain
has been marked with high levels of vertical integration over the years, as significant attention has
been placed at a number of stages along the supply chain. Imposing a certification standard on a
small supplier may actually have negative effects. This approach to the competitive advantage
corresponds with the suggestion of Johnson et al. (2009), namely that the source of competitive
advantage depends on the ability of the business, and how it distinguishes itself in the eyes of the
customer and from the competitors. Procurement usually accounts for a large proportion of a
business’ expenditure. For example, firms often track service measures such as item-order fill rates,
order-to-delivery cycle time, and order defects (wrong item shipped). Szabo, personal
communication, 2012-04-02; Kenesei, personal communication, 2012-04-20). Research Proposal on
Supply Chain Management 2019-01-28. On the other hand Tenenbaum and Driscoll (2005)
mentioned that semi structured interviews contains a number of questions to be explored by each of
the candidates to be interviewed. The plan optimizes raw material yearly needs the related logistics
capacity needs and inventory needs considering turnarounds. The expected flexibilty can be achieved
through the optimization by making necesarry changes in the plan triggered by the adjusting steps.
Private sector companies can purchase any product from any supplier without regulation or
restriction. It will also be easier for the company to eliminate waste by eliminating the inefficiencies
that could be occurring within their current system. The authors have encountered several problems
in the data collection process: one of the problems encountered was that there were a limited number
of references on the selected topic. In this regard, the authors include the idea on how to develop
alliance, trust with partners and resolving conflicts that may potentially arise. Hasini (2008) states
that supply chain optimization is basically a practice in which resources are proficiently utilized in
satisfying the customer’s order, yet, subject to 19. 13. We offer high-quality assignments for
reasonable rates.
The consumer is not aware that the inventory status on the product may be updated only once a
week and that the information on the site may be outdated. Christopher (2011) bases this idea on the
model Three Cs. This would mean that once Magna has completed assembling the body, only then
will Surtema will start working on paints, Once Surtema has completed this function, and then VDO
will assemble the cockpit. This category addresses many important choices related to transportation
management including vehicle routing, dynamic fleet management with global positioning systems
(GPS), and merge in transit. For successful implementation the following had been carried out:-.
Logistics reconfiguration is an active practice in the Chinese pharmaceutical industry. A qualitative
way to represent performance appears in Figure 40. As tempting as LCC unit costs may be, firms
should carefully examine the effect of the decision on quality, delivery performance, and new
product introduction. These resources rely on an end-to-end Cisco network. This problem could
result from holding too much stock of unpopular products or components while stocking out of
those in great demand. It does not mean that customer satisfaction does not play an essential role for
MOL Group but it appears more in the retail filling station than in the optimization (T. Based on this
taxonomy, significant trends were observed and some unique inferences were drawn, apart from
identifying the directions for future research. It is important that sales all trading partners within
supply chain concentrate on sharing information pertaining to sales alongside information on new
products, expansion plans, marketing campaigns and existing opportunities for the purposes of profit
maximization. While distributors endeavor to enter into value-added supply-chain services such as
collaborative planning and vendor-managed inventories some vendors oppose the efforts which in
turn forces distributors to struggle with inadequately controlled inventory level. OBTAIN
RELEVANT INFORMATION From the first stage, the business needs to identify a list of potential
suppliers and get them to present information about themselves. A case study approach was followed
for the research work. A strong incentive and a method and specific steps for implementation still
remains to be researched. Methodology for the development of RFID valued added services to
improve supply chain operations. The flow of information and materials in the supply chain is not
smooth, and in turn, this flow affects the overall project time and cost effectiveness. While these
areas may appear to be somewhat disparate, they are all linked by the integrated nature of the
problems at hand. On the other hand, several ?rms realize that greater bene?ts can be attained if some
of these market places can in fact be used for process integration and collaboration across the supply
chain. The four-stage decision process described in Pyke 2007 will not eliminate the anxiety that
workers and managers may feel, but it should reduce it. The diagram aims to summerize and
illustrate the optimization process and its factors in the downstream oil supply chain. Both business-
to-consumer and business-to-business ecommerce environments have introduced several issues
related to supply chain management which are likely to be studied by researchers in the near future.
MOL’s efficiency is reflected by having the highest net cash refinery margin and net production
income per barrel in Europe since 2003 (MOL Group Investor Relation, 2012; Appendix 4 and 5). It
is hoped that this work would add value by offering a unique contribution to the body of knowledge
on SCM, as there is no article available in the literature, which has attempted to summarize the works
from India related to SCM. The long lead time also indicates the length of the supply chain which
makes the transportation cost expensive. Fundamentally, these e?ects are caused due to an inability
of the ?rm to predict the requirement for raw material and equipment capacity together with the
uncertainty associated with obtaining deliveries of products on time from its suppliers. Other than
these, other variables are key performance indicators that include reliability of supply chain delivery,
responsiveness of the supply chain, flexibility, efficiency in asset management and supply chain cost
measures. The inventory held in these warehouses should allow factories to smooth production while
meeting variable customer demand.
Thus, this would further provide substantial complications and one of them is poor customer service,
not achieving set revenue and eventually business loss. For Later 100% 100% found this document
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document. As a result ful?llment is as important as making the sale. Although the respondent adds
that a good supply chain management can be developed in any oil company in the course of time. An
analysis of the four operations objectives—cost, quality, delivery, and flexibility—helps managers
focus on important operational considerations other than cost. Therefore, oil companies, just like
companies in every industry, endeavour to achieve competitive advantage over their competitors in
order to be successful in the long term. The CIDA (1994) and DISR (1999) reports on the Australian
construction industry suggest that the industry requires reform to improve quality, productivity and
performance. Gainsborough (2006) states that the main obstacle in the industry is the silo mentality,
meanwhile actors in the oil and any other supply chain, desire a holistic view. All of the projects
studied faced cost and time overruns. Upstream is viewed as almost totally separated business
segment of MOL from the downstream. This planning stage is done by the planning and
optimization unit (Kenesei, personal communication, 2012-04-20). Afterward logistics management
has to be involved in order to deliver the crude oil from the exploitation point to the refinery.
Exchange-rate issues fall in this category, as do economies and diseconomies of scale and scope,
labor availability and skill, and quality-of-life issues for employees. While John Deere is a reputable
company, and desirable to do business with, the main reward for performance excellence in the AEP
program is a plaque, maybe a banquet, and more John Deere training. They base their concern on the
profit margin of the company. The petroleum industry consist of oil, gas and petrochemistry
divisions. Furthermore, because many service parts systems have multiple tiers, requiring models of
multilevel systems composed, say, of regional warehouses, local distribution centers, and dealers.
The impact would not only be felt on the sales of Smart Car but it would have a sill-over effect and
would adversely impact the current high-selling models of Daimler and Benz. Christopher (2011)
argues that the company with better logistics and supply chain management can improve and sustain
their competitive advantage over the rival companies. Through supply chain management a firm
pursues value creation through timely product delivery, cost management, inventory control and
customer service Beamon, 1999. This is because the stage comes with a lot of technical and statistical
requirements that most managers cannot fulfil. Purchase is the foundation of making an effective
Supply Chain. How can the group members better manage the consensus building to present an
undivided front to Excelsior? What they would want to emphasize is simply to treat supply chain
management as a special technique or tool in an organization in order to create or deliver product or
service offerings on a timely manner without wasting the opportunity in maximizing opportunity cost.
University of California, Berkeley, CA, USA. Pp135-136. Integration in this case is only possible in
the event that organizations are able to establish the alignment between existing supply chain and
suggested supply chain strategy on the basis of level of market demand and costs (Lambert, 2008). It
can be seen from the above that even though MCC was formed as a result of supplier integration and
partnership cost sharing, but MCC was by far the stakeholder with the maximum investment. Keep
on browsing if you are OK with that, or find out how to manage cookies. Buy college papers for
cheap and improve your grades. For this research the authors use both, primary data through
interviews to get a relevant and reliable data to make a good research and secondary data from
different sources, such as books and articles as a supportive data which helps in building the frame
of reference for the study and gives a guidance in making analysis with the findings systematically
and properly.