Supply chain configurations for the oil and gas industry : a service provider perspective

Theart, Alfred Llewellyn Mark (2014-04)

Thesis (MComm)--Stellenbosch University, 2014.

Thesis

ENGLISH ABSTRACT: Oil dependency has increased in the past few decades and the search for new reserves is a constant quest within the oil and gas industry. The oil and gas industry is characterised by the separation of fuel production facilities and the intended markets for its derivatives. This separation creates challenges for proper supply chain management and network configuration. A well-balanced network design becomes of utmost importance. The use of third party logistics service providers has further complicated this separation challenges with this increase in distance between the resources and the intended markets. By using various best practices within the field of network configuration, the consolidation of multiple segments of various supply chains can improve efficiency and lead to more streamlined supply chains. The primary objective of the study is to develop an alternative to the normative methods used in placing of facilities. The secondary objective is to establish whether consolidation of multiple segments of various supply chains within the oil and gas industry is feasible. By using advanced descriptive decision support techniques and technologies, the study showed how the application of these techniques can assist management with improved decision making at a strategic level. The study is based on a prominent service provider within the oil and gas industry. Both quantitative and qualitative data were used by the researcher to illustrate the complexities involved in serving the direct and indirect supply chains of the oil and gas industry. The analysis shows that by using advanced descriptive decision support techniques and technologies, management can use the process proposed in the study to great effect in visualizing the current supply chains. Consolidation opportunities were also found across multiple supply chains within the service provider. By looking at the historical data, IT-based descriptive decision support techniques and technologies demonstrated the value of visually representing the supply chain and the decisions that could be made based on the results. A strategic hub, as a network configuration option, can be a feasible option if it serves a defined geographical area and is focused on a specific industry (in this case oil and gas). Crucial to a successful study of this nature, is the quality of data. During the study, the issue of effective data cleaning, aggregation, categorization and preparation became evident. Strategic studies will only be effective if proper data cleaning and preparations are done on a regular basis and updated regularly.

AFRIKAANSE OPSOMMING: Die afhanklikheid van olie het die afgelope paar dekades toegeneem. Daar is ook ʼn konstante soektog na nuwe reserwes in die olie- en gasindustrie. Die olie- en gasindustrie word gekenmerk deur die skeiding van brandstofproduksiefasiliteite en die beoogde markte vir sy afgeleides. Hierdie skeiding skep uitdagings vir behoorlike voorsieningskettingbestuur en netwerkkonfigurasie. ʼn Goeie, gebalanseerde netwerkontwerp is van uiterste belang. Die gebruik van derde-party logistieke diensverskaffers het hierdie skeidings-uitdagings verder gestrem as gevolg van langer afstande tussen hulpbronne en die beoogde markte. Verskeie beste praktyke in die studieveld van netwerkkonfigurasie en ontwerp aangewend word. Dit kan die konsolidasie van verskeie segmente van verskillende voorsieningskettings se doeltreffendheid aansienlik verbeter en lei tot meer vaartbelynde voorsieningskettings. Die primêre doel van die studie is om ʼn alternatief tot die normatiewe metodes, wat tans gebruik word vir die plasing van fasiliteite te bepaal. Die sekondêre doel is om vas te stel of konsolidering van verskeie segmente van verskillende voorsieningskettings in die olie- en gasindustrie haalbaar is. ʼn Alternatiewe tot die normatiewe metodes is gevorderde, beskrywende besluitnemingsondersteuningtegnieke en tegnologie. In die studie is getoon hoe die gebruik van hierdie alternatiewe metodes kan help met verbeterde besluitneming op strategiese vlak. Die studie is gebaseer op 'n prominente diensverskaffer in die olie- en gasindustrie. Beide kwantitatiewe en kwalitatiewe data is deur die navorser gebruik om die kompleksiteit in die bediening van die direkte en indirekte voorsieningskettings in die olie- en gasindustrie te illustreer. Hierdie studie het uitgewys hoe die voorgestelde proses ontwikkel en die visualisering van voorsieningskettings tot ʼn groot mate kan verbeter met die gebruik van gevorderde, beskrywende besluitnemingsondersteuningtegnieke en tegnologie. Daar is ook konsolidasie geleenthede gevind vir elemente oor verskeie voorsieningskettings van die diensverskaffer. Deur toepaslike historiese data te ondersoek, met behulp van IT-gebaseerde beskrywende besluitnemingsondersteuningtegnieke en tegnologie, kan die waarde van die visuele voorstelling van voorsieningskettings insiggewend gedemonstreer word. Meer ingeligte en effektiewe besluite kan gevolglik geneem word. Daar is gevind dat ʼn strategiese konsolidasiepunt (“hub”), as ʼn netwerk konfigurasie opsie, moontlik lewensvatbaar kan wees binne ʼn bepaalde geografiese area vir ʼn spesifieke bedryf (in die geval olie en gas). Die kwaliteit van die data is egter van uiterste belang om ʼn suksesvolle studie te verseker. Tydens hierdie studie is die belangrikheid van datasuiwering, samevoeging, kategorisering en voorbereiding duidelik uitgewys. Strategiese studies sal slegs effektief wees indien behoorlike datasuiwering en voorbereiding op 'n gereelde basis gedoen en opgedateer word.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/86582
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