The document discusses the petroleum supply chain in India. It notes that the petroleum industry plays an important economic role and its supply chain management is crucial. The supply chain involves upstream exploration and production and downstream refining and marketing of crude oil and products. The document outlines objectives to understand distinguishing features of the petroleum supply chain, discuss the Indian petroleum supply chain, identify non-value added activities, and discuss the role of IT. It also provides details on various stages and strategies for the petroleum supply chain.
This project report compromise of
CUSTOMERS VIEWS ON PRESENT PRICE DIFFERENCE BETWEEN MS AND XP.
STRENGTH IN THE BRANDED MS WHICH MAKES THE CUSTOMER USE THE SAME.
STUDY ON THE POSITIONING OF XP IN RO’S.
PROFILE OF XP USERS.
THE INCENTIVE STRATEGY FOR XP USERS.
SYNERGY BETWEEN XTRAPREMIUM AND XTRAREWARD PROGRAMME.
My Thesis on Supply chain Management In the Oil & Gas industrySarahRouguine
A thesis that examines the increasing importance of supply chain agility for oil and gas service companies , in the
highly volatile and complex oil and gas industry
This project report compromise of
CUSTOMERS VIEWS ON PRESENT PRICE DIFFERENCE BETWEEN MS AND XP.
STRENGTH IN THE BRANDED MS WHICH MAKES THE CUSTOMER USE THE SAME.
STUDY ON THE POSITIONING OF XP IN RO’S.
PROFILE OF XP USERS.
THE INCENTIVE STRATEGY FOR XP USERS.
SYNERGY BETWEEN XTRAPREMIUM AND XTRAREWARD PROGRAMME.
My Thesis on Supply chain Management In the Oil & Gas industrySarahRouguine
A thesis that examines the increasing importance of supply chain agility for oil and gas service companies , in the
highly volatile and complex oil and gas industry
At Adani Wilmar Limited, we believe that the future of a nation rests on its people. People, who don’t just dream, but aspire. However, dreams, big visions, big challenges and courage need a strong, healthy and nourished body.
Oil 101 - A Free Introduction to Oil and Gas
Introduction to Supply, Trading, Transportation
This Supply, Trading, and Transportation (S&T) overview includes discussions on What is S&T, what are some of the major risks associated with trading, and some historical perspective on the evolution of S&T.
The complete S&T Module includes lessons on crude oil and products supply fundamentals, derivative contracts and exchanges, as well as key business drivers in physical trading and financial hedging. Natural gas trading is beyond our scope though it has a similar commercial function, closely tied to the utility and power consumer market.
What is Supply and Trading?
To help answer that question, let’s look briefly at how Chevron defines S&T on their website.
“Chevron Supply and Trading (S&T) provides a critical link between the market and Chevron's upstream, downstream and chemicals companies. S&T provides commercial support to Chevron's crude oil and natural gas production operations as well as to the company's refining and marketing network.”
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 148 billion in FY16. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). As per UN Comtrade Database for 2015, India ranks 17th in the world exports of chemicals (excluding pharmaceutical products) and ranks 6th in the world imports of chemicals (excluding pharmaceutical products).
Oil 101 - Introduction to Petroleum Product MarketingEKT Interactive
Oil 101 - A Free Introduction to Oil and Gas
Introduction to Marketing - Retail and Wholesale
This petroleum product marketing overview includes discussions on What is Marketing, the structure and key functions of oil company marketing departments, and some historical perspective on how demand for transportation fuels, including service stations came, to dominate US landscape.
The complete Petroleum Product Marketing Module includes lessons on marketing fundamentals, retail vs wholesale marketing, and key business drivers and processes in petroleum product marketing.
What is Petroleum Product Marketing?
As we stated earlier, Marketing is the final step in the ‘Microbes to Markets’ chain that delivers useful petroleum products to end-user customers. The main business drivers of this segment are volume, market share and margin.
Worldwide, transportation fuels including gasoline, diesel, jet fuel and marine fuel oil account the largest percentage of global demand, and it is the fastest growing portion of refinery products.
In the United States, passenger cars still consume more petroleum products than any other sector. Today, the US accounts for about 44% of the world’s gasoline consumption, and transportation fuels are 65% of the US demand.
Since the US has one of the most competitive retail markets in the world, it has been a leading indicator in development of new service station formats. Many of these retail formats are adopted around the world – with some customization to accommodate local legislation and consumer preferences.
Basic cost analysis in petroleum upstream industry part aHamdy Rashed
Cost control and management is not appropriate only for manufacturing and commercial industry;
cost management is applied in upstream industry such as Petroleum exploration, development and
production cost. Many Petroleum Companies don’t pay more attention to cost control and
especially during exploration phase except if Companies face financial dilemma, declining
production or if they see they cannot meet their planned schedule of Capital program that lead
them to not meet their obligation, commitments and required return, therefore, they start
considering cost reduction or control. This paper provide management accountant, cost controller,
financial controller, financial manager, internal auditor and cost recovery auditor with brief of cost
control, how cost is analyzed and managed and performance is measured in Petroleum upstream
industry.
Oil 101: Introduction to Oil and Gas - DownstreamEKT Interactive
Oil 101: Introduction to Oil and Gas
What is Downstream?
This Downstream module includes the following sections:
-Downstream Business Characteristics
-Refining – Products and Participants
-Consumption – The Final Step in Adding Value
-Marketing and Retail
Downstream
Processing, transporting and selling refined products made from crude oil is the business of the downstream segment of the oil and gas industry.
Key downstream business sectors include:
-Oil Refining
-Supply and Trading
-Product Marketing and Retail
The downstream industry provides thousands of products to end-user customers around the globe.
Many products are familiar such as gasoline, diesel, jet fuel, heating oil and asphalt for roads. Others are not as familiar such as lubricants, synthetic rubber, plastics, fertilizers and pesticides.
The downstream segment is a margin business. Margin is defined as the difference between the price realized for the products produced from the crude oil and the cost of the crude delivered to the refinery.
Although the price of crude sets the absolute level of product prices, it may or may not affect refining or marketing margins. Downstream margins tend to be reduced, or squeezed, when crude price increases often cannot be recovered in the marketplace. On the other hand, margins tend to hold, or even increase, when crude prices drop and the marketplace more slowly adjusts to these lower crude prices.
The downstream segment includes complex and diverse activities including manufacturing, petrochemical refining, distribution, and retail.
A global perspective is important because of the global nature of the energy supply chain as well as the impact of supply and demand on both feedstock and product prices.
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
At Adani Wilmar Limited, we believe that the future of a nation rests on its people. People, who don’t just dream, but aspire. However, dreams, big visions, big challenges and courage need a strong, healthy and nourished body.
Oil 101 - A Free Introduction to Oil and Gas
Introduction to Supply, Trading, Transportation
This Supply, Trading, and Transportation (S&T) overview includes discussions on What is S&T, what are some of the major risks associated with trading, and some historical perspective on the evolution of S&T.
The complete S&T Module includes lessons on crude oil and products supply fundamentals, derivative contracts and exchanges, as well as key business drivers in physical trading and financial hedging. Natural gas trading is beyond our scope though it has a similar commercial function, closely tied to the utility and power consumer market.
What is Supply and Trading?
To help answer that question, let’s look briefly at how Chevron defines S&T on their website.
“Chevron Supply and Trading (S&T) provides a critical link between the market and Chevron's upstream, downstream and chemicals companies. S&T provides commercial support to Chevron's crude oil and natural gas production operations as well as to the company's refining and marketing network.”
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 148 billion in FY16. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). As per UN Comtrade Database for 2015, India ranks 17th in the world exports of chemicals (excluding pharmaceutical products) and ranks 6th in the world imports of chemicals (excluding pharmaceutical products).
Oil 101 - Introduction to Petroleum Product MarketingEKT Interactive
Oil 101 - A Free Introduction to Oil and Gas
Introduction to Marketing - Retail and Wholesale
This petroleum product marketing overview includes discussions on What is Marketing, the structure and key functions of oil company marketing departments, and some historical perspective on how demand for transportation fuels, including service stations came, to dominate US landscape.
The complete Petroleum Product Marketing Module includes lessons on marketing fundamentals, retail vs wholesale marketing, and key business drivers and processes in petroleum product marketing.
What is Petroleum Product Marketing?
As we stated earlier, Marketing is the final step in the ‘Microbes to Markets’ chain that delivers useful petroleum products to end-user customers. The main business drivers of this segment are volume, market share and margin.
Worldwide, transportation fuels including gasoline, diesel, jet fuel and marine fuel oil account the largest percentage of global demand, and it is the fastest growing portion of refinery products.
In the United States, passenger cars still consume more petroleum products than any other sector. Today, the US accounts for about 44% of the world’s gasoline consumption, and transportation fuels are 65% of the US demand.
Since the US has one of the most competitive retail markets in the world, it has been a leading indicator in development of new service station formats. Many of these retail formats are adopted around the world – with some customization to accommodate local legislation and consumer preferences.
Basic cost analysis in petroleum upstream industry part aHamdy Rashed
Cost control and management is not appropriate only for manufacturing and commercial industry;
cost management is applied in upstream industry such as Petroleum exploration, development and
production cost. Many Petroleum Companies don’t pay more attention to cost control and
especially during exploration phase except if Companies face financial dilemma, declining
production or if they see they cannot meet their planned schedule of Capital program that lead
them to not meet their obligation, commitments and required return, therefore, they start
considering cost reduction or control. This paper provide management accountant, cost controller,
financial controller, financial manager, internal auditor and cost recovery auditor with brief of cost
control, how cost is analyzed and managed and performance is measured in Petroleum upstream
industry.
Oil 101: Introduction to Oil and Gas - DownstreamEKT Interactive
Oil 101: Introduction to Oil and Gas
What is Downstream?
This Downstream module includes the following sections:
-Downstream Business Characteristics
-Refining – Products and Participants
-Consumption – The Final Step in Adding Value
-Marketing and Retail
Downstream
Processing, transporting and selling refined products made from crude oil is the business of the downstream segment of the oil and gas industry.
Key downstream business sectors include:
-Oil Refining
-Supply and Trading
-Product Marketing and Retail
The downstream industry provides thousands of products to end-user customers around the globe.
Many products are familiar such as gasoline, diesel, jet fuel, heating oil and asphalt for roads. Others are not as familiar such as lubricants, synthetic rubber, plastics, fertilizers and pesticides.
The downstream segment is a margin business. Margin is defined as the difference between the price realized for the products produced from the crude oil and the cost of the crude delivered to the refinery.
Although the price of crude sets the absolute level of product prices, it may or may not affect refining or marketing margins. Downstream margins tend to be reduced, or squeezed, when crude price increases often cannot be recovered in the marketplace. On the other hand, margins tend to hold, or even increase, when crude prices drop and the marketplace more slowly adjusts to these lower crude prices.
The downstream segment includes complex and diverse activities including manufacturing, petrochemical refining, distribution, and retail.
A global perspective is important because of the global nature of the energy supply chain as well as the impact of supply and demand on both feedstock and product prices.
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
In this presentation, we will discuss about world class manufacturing focusing on customer based principals, global markets, achieving world class, global competition reality, importance of automation in production and operations. We will also talk about global competitiveness, competitive priorities of manufacturing, recent trends, various attributes of excellent companies, overview on various world class suppliers, buyers, manufacturers. Present scenario of global business conditions, performance of world class manufacturers, world class service delivery and customer focused principals will also be discussed.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
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A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
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Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
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Global Interconnection Group Joint Venture[960] (1).pdf
Supply Chain - Petroleum
1.
2. INTRODUCTION
• The petroleum industry
plays an important role in
the economic development
of the country
• Performance of its supply
chain has become very
important
3. INTRODUCTION (contd.)
• The petroleum industry traditionally had prices
decided by the Government of India.
• Effective from August 1, 2004, the Government put in a
revised methodology allowing oil companies to revise
the prices of motor spirit and High Speed Diesel (HSD).
• The total investment estimated in the petroleum sector
from 1995 till 2010, is expected to be Rs. 4,32,000 cr
(US$120 bn), out of which Rs. 2,58,000 cr (US$80 bn),
are for the upstream sector alone
• Petrochemical industry in India employs around 40,000
people directly and around 4 lakh indirectly
4. OBJECTIVES
• Understanding the importance of supply chain management in
the petroleum industry.
• Identifying distinguishing features of the petroleum industry
supply chain vis-à-vis discrete manufacturing supply chains.
• Discussing the petroleum supply chain in India.
• Identifying non-value added activities in the petroleum supply
chain.
• Discussing the role of information technology in revamping the
petroleum industry supply chain.
6. DIFFERENT STAGES IN PETROLEUM
SUPPLY CHAIN
Exploration → Production → Refining → Marketing →
Consumer
• Exploration: Seismic, geophysical and geological
operations
• Production: Drilling, reservoir, production and facilities
engineering.
• Refining : complex operation and its output is the input
to marketing.
• Marketing : The retail sale of gasoline, engine oil and
other refined products.
7. IMPORTANCE OF SUPPLY CHAIN
IN PETROLEUM INDUSTRY
•Petroleum industry is highly asset intensive
•Like other chemical companies supply chain can
account for upto 70% of overall cost .
•Highly specialized business processes encourages
fragmentation.
•Chemical supply chains are typically non-linear in
nature
• Supply chain optimization at a strategic and
operational level is a value creating opportunity for
chemical companies and a potential source of
competitive advantage
8. Petroleum Supply Chain In India
Upstream
Exploration & Production
Ministry of Petroleum & Natural Gas
Downstream
Refining & Marketing
Industry Bodies
ONGC
Oil India
Limited
OVL
Pvt E&P
Cos.
CPCL, BRPL NRL
Hindustan
Petroleum
Reliance
Industries
Ltd.
• Petroleum
Planning &
Analysis Cell
• Centre for High
Technology
• PCRA
• PetroFed
• Oil Industry Safety
Directorate
• Petroleum India
International
• Engineers India
Limited
• Director General
of Hydrocarbon
IndianOil Bharat
Petroleum
MRPL
9. UPSTREAM SUPPLY CHAIN
• Acquisition of crude oil.
• Operations – Exploration ,Forecasting ,
Production .
• Logistics management - Delivering crude oil
from remotely located oil wells to refineries
10. DOWN STREAM SUPPLY CHAIN
• Refinery- The crude oil is manufactured into
the consumable products that are the
specialty of refineries and petrochemical
companies.
• Processes - forecasting, production, and the
logistics management of delivering the crude
oil derivatives to customers around the globe.
12. OBJECTIVES OF A SUCCESSFUL SUPPLY
CHAIN IN PETROLEUM
• Minimization of material procurement
• Maximization of manufacturing capacity and sales
• Meet demand numbers
• Respond quickly to market opportunity by purchasing
the production shortfall from other players
• Objective of each production unit would be to
maximize the throughput and its margin
• Procurement would purchase the feedstock with not
the best yields at lowest cost
13. SUPPLY CHAIN STRATEGIES
• Planning
– Which feed stock to buy
– Where to process
– How much to buy readymade and how much to
make
– What to make and where
– How to transport
14. SUPPLY CHAIN STRATEGIES CONTD.
• Scheduling
– When and in what order feedstock should arrive
at manufacturing facility
– When and in what sequence or modes to run the
equipments
– Which orders to meet and what dates to promise
15. SUPPLY CHAIN STRATEGIES CONTD.
• Demand planning: For demand forecasting and aggregation of the
final demand numbers based on requirements of supply chain
• Integrated Planning: Planning for the complete supply chain of the
customer based on demand numbers
• Distribution Planning: Generating operational plans for distribution
• Production Planning: Generating operational plans for production.
These modules are supported by various enablers that facilitate planning
activity that include:
• (1) Supply Chain Database (SCD)
• (2) Geographical Information System (GIS)
• (3)Data Interfaces
16. • The demand numbers are fed to an integrated planning module that
contains representation of supply, production and distribution facilities
• The production and the Supply and Distribution (S&D) structure forms the
basis on which the optimised plan for the entire organisation is generated
• This corporate plan is communicated to distribution modules and the
production planning modules to generate operational plans
• The optimised plan for the entire corporation is also used as a basis for
feedstock selection runs.
• GIS can be used to obtain the distances between locations, which are used
as a basis for freight calculation
SUPPLY CHAIN PLANNING SOLUTION
17. UNIQUE FEATURES OF THE
PETROLEUM INDUSTRY SUPPLY CHAIN
• Raw Material Supplies:
Process industry has limited choice of suppliers for
raw material
Supplies in petroleum industry are dominated by
cartels
It is a sellers market wrt supply of raw material
• Raw Material Prices:
Raw material prices are highly unstable and
fluctuating on weekly or even daily basis
Fluctuating prices directly affect the supply chain costs
and prices of final product
18. UNIQUE FEATURES OF THE
PETROLEUM INDUSTRY SUPPLY CHAIN
• Reverse Production Flow:
The production flow is reversed in petroleum industry.
In downstream petroleum companies, inventory starts
from one product, i.e., crude and creates many
products like petrol, diesel, naphtha, bitumen, etc
• High Transportation Costs :
Transportation costs about 20% of the production
cost.
• Length of Supply Chain:
Very Complex and lengthy supply chain
19. UNIQUE FEATURES OF THE
PETROLEUM INDUSTRY SUPPLY CHAIN
• Integration of Supply Chain Partners :
Integration of suppliers as well as customers and
distributors is difficult
Cost pressures are the driving force in the supply
chain.
• Flexibility :
Supply chains are highly inflexible both in terms of
volumes handled and in terms of product
variation/customization.
20. FUNCTIONS OF SUPPLY CHAIN DB
• SCD provides distribution related inputs to both
Integrated Planning and Distribution Planning models
and has these following functions:
– Temporal integration: Data for yearly and quarterly
models available in one place and can be rolled up or
down as per requirement.
– Hierarchical integration: Aggregation for integrated model
is done based on detailed data available for operational
distribution models
– Calculations: Final linkage costs are calculated using tax
logic, current prices, distances and freight rates.
21. NON-VALUE ADDED ACTIVITIES IN
THE PETROLEUM SUPPLY CHAIN
• Waiting:
– Crude oil is often imported.
– Cargo ships have to often wait at the harbour before they can unload
the crude.
– Waiting leads to increase in inventory holding within the supply chain.
– Occur while finished product is sent to storage installations by rail
• Additional Quality Checks:
– Adulteration usually happens in case of petroleum products like petrol
and diesel
– Adulteration is also possible in transit from storage installation to the
retail outlet
– Use of common pipeline for transporting different products leads to a
small portion of product being "degraded“.
– Testing of the product is required at various times.
22. NON-VALUE ADDED ACTIVITIES IN
THE PETROLEUM SUPPLY CHAIN
• Holding of Huge Inventories:
– Product is made to stock and mammoth inventories are being kept at
refineries and at storage installations
– In Transit inventories
– Information on demand and supply is not very clear and there is lack
of visibility that adds up to increased safety stock requirements both
for raw material and finished product
• Over Production:
– continuous process plants
– continuous supply of feed stock, resulting in the production of several
downstream products
– inflexibility in capacity, as these plants have to run continuously all the
time
– This increases inventories of finished product and results in inefficient
use of capital.
23. ROLE OF INFORMATION TECHNOLOGY
IN THE PETROLEUM INDUSTRY
• Timely flow of accurate information can affect performance
of the supply chain to a large extent.
• Integration of demand chain information
• Hence process optimization is the key task for the
Information Technologies function of process industries and
currently seems to be a huge challenge
• It is a method that unites the modelling, designing and
monitoring of engineering assets with scheduling, supply
chain, trading a fulfilment via multiple flows of information
between stages in life cycle of products, bringing huge
efficiencies
• Customer-segmentation strategies and effective demand
management, will lead to increased top line revenues and
reduced cost of sales.
24. SUGGESTIONS
• Raw Material Supplies:
Formulating a long term agreement with some of the oil
producing nations and in order to take care of price
fluctuations
Government should allow the petroleum companies to
use hedging for finalizing deals involving purchase of
crude oil.
• Transportation Costs:
Use of Pipeline transportation
• Length of Supply Chain:
Facilities at the ports should be improved and their
capacity to be increased so that more tankers could
berth at the harbour
25. SUGGESTIONS (Contd.)
• Inventory Carrying Costs:
Use of a reliable transportation system and quick
information exchange can reduce carrying costs
Government should aim at reducing the minimum
safety stock, which oil companies are supposed to
keep
• Integration of Supply Chain Partners:
Oil companies should aggressively use information
technology to integrate suppliers and customers.
Effective use of ERP can help in this regard.