CASE STUDY

Supply Chain Analysis Helps a Leading Oil and Gas Company Enhance its Operations and Increase Reliability

Dec 4, 2017

Business Challenge

An international player in the oil and gas industry space with global production and distribution operations across the globe was facing predicaments with their supply chain network that threatened to disrupt their ambitious growth plans. Additionally, the company was active in multiple product lines, including basic chemicals, polymers, intermediates, fertilizers, metals, and specialties. As a result of this diversity, the oil and gas industry player had an extremely intricate, global production and distribution network with numerous storage locations and modes of transportation for delivering its products to customers.

Engagement Overview

During the course of this supply chain analysis engagement, the oil and gas industry banner SE (2)client was able to evaluate their company’s supply chain management capabilities compare with leading practices. Additionally, the client was able to design a strategic blueprint for future supply in six critical areas including operations, planning, sales and customer service, organization structure, performance management, and supply chain network.

Our Findings

The supply chain analysis engagement helped the petrochemical industry client identify numerous improvement opportunities at the functional levels. Additionally, with the help of SpendEdge’s strategy blueprint, the client improved service levels, streamlined operations, and planning processes, enhanced operations, and increased reliability across business units.

Oil and Gas Industry Overview

The growth of the oil and gas industry is determined by the high demand for its derivatives in the textile, automotive, medical, construction, industrial, electronics and consumer goods, and pharmaceuticals industries.  However, the ever-increasing competition in the petrochemical industry space is forcing oil and gas industry players to improve their existing business models, maximize cost savings and improve automation across their sourcing and procurement processes. Supply chain analysis help firms operating in the oil and gas industry space to devise cost-effective and best-in-class product and service offerings to the customers and helps them increase their overall profitability and competence over their competitors.


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