United Kingdom Oil Supply Chain - Coursework Example

A preliminary proposal has already been put in place and signed off by the Association. The findings of this proposal which will form the basis of this report are summarised as follows:

• Short Term: Issues to be addressed are mainly concentrated around the price, demand, and revenue.
• Economic Climate:  Currently, we cannot dismiss the possibility of an imminent recession. This risk is common throughout the entire oil sector. Any prosecution would need to take this into account.
• Contractual Issues: Manufacturers are moving away from vertically integrated production processes. The Supply chain is now an integral part of the manufacturer base. It is very important to avoid canceled orders or penalties for late delivery.
• Process Flow: A logical process flow has been created. This details the outline steps required, to act as a basis for the design of the final version of the Supply Chain model we are going to ultimately recommend.
• Transportation: It is necessary to develop a transportation technique that will be able to process the predicted supply by the year 2020. This will depend on the forecasting of demand, which at times can be unpredictable.
• Effective Supply Chain Management: This is closely related to shareholder value. Effective supply chaining management is required, alongside global sourcing strategies to capitalize on the potential margins emerging currently in emerging markets.
• Product Decline in Oil Industry: The evidence indicates that products of the Oil industry in the immediate future will be handled in declining quantities but at greater costs. This needs to be addressed via the Supply Chain protocols we intend to instigate.
• 3rd Party Sourcing of Supplies/Services:  The recent trend has been to outsource supplies and services. This can cause problems when there are disruptions to service. Effective Supply Chain Management will enable the identification of critical tasks, and the interdependencies with suppliers, in order to provide swift resolution to problems and pre-empt possible future problems in order to avoid them.