| International Oil Supply Chain: Russian Oil Industry In The Light Of New Developments
The research is motivated by the surging world oil prices, overwhelming focus on oil inventory levels that greatly influences the oil prices and changes on companies` corporate strategies. As oil demand from China and prospective improvement of Russian oil production are the key elements changing the industry balances, the dissertation therefore later concentrates on the oil distribution infrastructure in Russia and provides suggested solutions for efficiency enhancement.
This study analyses the role of supply chain in the downstream oil sector -particularly- in Russia. Transportation is the major component of oil supply-chain in the region for oil product distribution. However, infrastructures in Russia is generally poor, which disrupt immensely on the ability of oil trading companies to deliver the right products at the right time in the right place at the right quantity and quality and at the right price. In other words, there is the need for logistic strategies in this region that companies can use to strengthen their transportation processes, to efficiently manage inventory levels, to reduce overall logistics costs, to shorten the delivery time and also make on-time delivery possibility.
The aim of the study is to identify supply chain strategies that companies can develop within their scope as to minimise the oil distribution costs in The Russia and gain regional competitive advantages. Hence, the study is concluded by noting that oil industry disintegration may play an essential part in value enhancement and cost minimization opportunities, the necessity to manage seasonal inventory and increase interregional refinery capacity as means of increasing performance in Russian oil distribution system.
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