How Oil Logistics are Affected in the Developing World - Case Study Example

The paper "How Oil Logistics are Affected in the Developing World " is a delightful example of a case study on management.

This chapter is the core section of the research in which it explains the implication of data (qualitative data) collected and systematically analyzed during the research process relative to the research question ‘How oil industries logistics is affected in the developing world and how they might overcome any logistical barriers?’

Two case studies have been used in this research (Oil and Gas Extraction Sector in Angola and ConocoPhillips Ekofisk Offshore Platform) both from Robert Yin. The discussion was supported by Supply Chain Operation Research (SCOR) Model in order to totally comprehend the industry’s logistics and its barriers basing on the results set up in both chapter 4 and chapter 5 (analysis chapter) of this research. There are five major reasons why the research used the SCOR model in discussing the correlations between the two cases (Oil and Gas Extraction in Angola and ConocoPhillips Platform) and Nigeria Oil Production in relation to the research question.

Reasons for Choosing Supply Chain Operation Research (SCOR) Model

• Planning: Supply Chain Management normally controls three management levels in the institutions; strategic level, tactical level, and operational level. Logistics in any industry is an integral activity that is checked upon at any level (Martin, 2011). Using SCOR, in this case, will comprehensively show the industry’s logistics is affected by various behaviors as well as presenting clearly logistical barriers found in chapter 4 and chapter 5.
• Customer Service: From the interview, we realized that Nigeria faces challenges like poor infrastructure and deprived communications. These are customer services that increase the performance of any other organization. Therefore, this model looked appropriate in discussing the findings since it evaluates and discusses the performance tradeoffs of diverse industries beneath from developing to already developed ones.
• Cost Control: Perhaps, the main reason for choosing the SCOR model was its matrices are attuned to supply chain performance, especially when comparing different supply chains and industries as well. Chapter 4 of the research examines three aspects that affect logistics (poor infrastructure, High Operational Cost and poor adoption of Information Communication Technology by the company). Definitely, the model takes this as the elements that control logistical cost.
• Supplier and Customer Relationship Management: The results above show that other oil and gas companies are interested in building a corporate business with Nigeria since opportunities in the country look apparently infinite. The model (SCOR) measures different aspects of logistics excellence in the two countries and integrates them into the expectations of partners of Nigeria Company.
• Talent development: This perhaps is not a basic reason but at some point in chapter 5, the research talks about IOC outsource a program that was approved as an essential aspect that leads to efficiency in logistics operations. The model, in this case, discusses talent acquirement and training as the most important aspects of overcoming logistics barriers in Nigeria and other developing industries.

SCOR Model, in this case, is used for three basic reasons;

• The model identifies useful results that lead to a justifiable conclusion in the research. The data that has been collected is qualitative therefore this model is very efficient when analyzing this qualitative variable. It also discusses extensively how industry logistics is affected in Nigeria by comparing it to other developed nations of the world.
• It recognizes the presence of barriers in logistics comprehensively (multi-case studies) and monitors the Product Life Cycle at every level.
• It recommends appropriate strategies from various cases in order to improve the Supply Chain Process.