|
|
| |
| Impact of Transportation System on Logistics and Supply Operations in the Petroleum Downstream Sector in Nigeria |
Okoroafor, Sunday Adiele
|
Abstract:
Logistics and supply operations in the petroleum downstream sector involves the application of transportation system for products to get to the consumers. This study discusses how transportation system impacts logistics and supply chain operations in the petroleum downstream sector in Nigeria. The theory for the study is Resource-Based View theory. Research design was historical and descriptive based on secondary data. The study found out that petroleum industry logistics management involves a lot of activities, which include demand forecasting, facility site selection, procurement management, material management, packaging, warehousing management, inventory management, order processing, logistics communications, transportation management, and reverse logistics. The study concludes that the challenges of the petroleum products logistics and supply chain operations in the Nigeria have also created problems such as increasing cost of product distribution by oil marketing companies and frequent pump price adjustments by the government which oftentimes lead to industrial strikes by trade unions in the downstream sector. The study among other things recommends that the petroleum business operators both private depot owners and marketers should be involved in all segments of the supply value chain like vessels, bulk storage, transportation, and retailing in order to create economies of scale and efficiency in the industry.
|
|
|
| | |