Aims and Objectives:-
This is an analysis that focuses firstly on the effectiveness of distribution in logistics and supply chain management of two major oil and gas marketing companies in the Sultanate of Oman (Oman Oil and Shell Oman) and comparing how well both these companies manage their warehouse inventory planning systems and transport operations, also how both these companies can improve in quality, delivery, efficiency and flexibility in an ever changing environment.
In logistics and transportation operations, processes change rapidly; vehicles and equipment move within and between facilities and inventory levels highly fluctuate. Location, status and condition data of assets (i.e. shipping containers, carriers, vehicles) can boost operational efficiency and drive profitability in logistics environments inputs or outputs, including transportation, warehouses and distribution centres.
This is a brief background of both companies :
Oman oil :
Formed in October 2003, Oman Oil Marketing Company (omanoil) has established itself as a leader in the Sultanate’s energy sector by providing customers with superior customer experiences at the highest international standards.
Omanoil’s core business involves:
Marketing and distribution of fuel and lubricant products operating in the sectors of fuel retailing.
Direct (bulk) fuel sales to Government and Commercial sectors.
Storage and Distribution.
Oman shell :
Shell has been active in the Sultanate of Oman since 1958. Its business activities in Oman are fuel transportation and lubricants marketing.
Shell Oman has 142 service station located in strategic locations around Oman.
Shell Oman has 54 Select Stores.
Proposed methodology approach:-
The sultanate of Oman’s economy is based primarily on petroleum and gas which makes up 78% of the country’s income. Oman’s oil production for 2010 averaged 810,000 Barrels per day this means that the oil and gas sector is the country’s main source of income, as a result distribution of these commodities is a fundamental key in sustaining supply and demand. The reason of choosing both these companies is to demonstrate the ability of applying strategies that can meet the supply of raw materials, process in control and meeting customer demand.
The flow of informant ion upstream and downstream and the ability to maintain a low cost in production hence maximising profits and have a competitive advantage in the market.
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