Supply Chain Management in the Oil Industry

Supply Chain Management in the Oil Industry

Case Studies

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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