`May 6, 2015
Mr. Ahmer Allauddin
Map the Supply Chain
The supply chain coordination is a very important process in the “A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user” (Whatis.com, 2015). The supply chain coordination is a very important process and has become more important as outsourcing increases. The exchange of goods passes through various stages, giving the product not just value but also increasing competition in the supply chain.
The fuel industry is a well-known supply chain. The supply chain process for the fuel industry can help break down how that industry works. The oil industry supply chain starts with the production, pipelines, refining, storage, terminals, shipping, port delivery, gas station, and delivery to the consumer. Understanding the process that the supply chain is made up of and where it falls in the system will give a picture of the process.
The first step in our supply chain is production, during this stage the oil is drilled, extracted, and pumped from the sea or land. Storage is then needed to store the oil until it is moved onto the remainder of the supply chain. Once the oil is sold, shipping is then handled at the port where the oil is shipped out. Shipping ports play a vital role as it is considered a meeting place for access to the supplier. The ports are used to transfer oil to refineries. Once the oil reaches the refinery it then transferred to pipelines where they are transported to the refining company. The pipelines used in this stage are traveled in fewer distances. Once in the refinery stage, the oil is used to produce several products we use on an everyday basis, but we will focus on fuel. Refineries then use a variety of chemical separations to process the
References: Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill Irwin. Petroprices.com. (2015). The supply chain. Retrieved from http://www.petrolprices.com/the-supply-chain.html Whatis.com. (2015). Supply Chain. Retrieved from http://whatis.techtarget.com/definition/supply-chain