Supply Chain Management in the Oil Industry

Supply Chain Management in the Oil Industry

One of the world’s largest oil companies, found itself in a position of having more than $1 billion in inventory that was turning very slowly – at fewer than two turns a year. At the same time, the cost of the supply chain organization had increased significantly. The organization supported materials for its oil operations and infrastructure, including a company town. The company needed a clear understanding of the issues effecting the supply chain.

The work was done in two phases. The first phase was an analysis to understand the situation and recommend a path forward. The second phase would implement that path forward once approved by top management.

The results included a better managed inventory and reduced costs of the supply chain organization. A secondary objective introduced the organization to “world class” supply chain methodologies.

Activities in this case study include:

• Analysis
• Supply Chain
• Inventory Reduction
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