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Supply Chain Network Design: Tackling Regulations, Lead Time and Cost-Efficiency

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Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

The main objective of this chapter is to deepen in the entire supply chain of the oil and gas industry by searching the feasibility of a new hub in Africa. The methodology will follow several criteria related to location, stability, lead times, profitability and intelligent hub among others.

Solutions come from comparison between the current situation and the one proposed in the chapter in terms of estimated total cost. A sensitivity analysis has also been performed, focusing on what would happen in the event of 5, 10, 20 and 30 working days being lost due to strikes.

Derived from these results, the chapter provides a set of recommendations regarding to location of the hub, renting equipment, modal transport and benchmark. Results are focused in the industries’ supply chains, especially those oriented to similar kinds of markets and looking for new opportunities in the African continent. The issue of customs and free trade zones is widely contemplated in the chapter and provides insights of feasible locations to establish future hubs.

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Notes

  1. 1.

    http://en.wikipedia.org/wiki/Petroleum_industry

  2. 2.

    Accenture. Supply Chain Improvements in Oil and Gas: Building an Operations Factory, 2013

  3. 3.

    http://businesscasestudies.co.uk/opito/the-importance-of-sustainable-purchasing-and-supply/purchasing-and-supply-in-oil-and-gas.html#axzz3Swj5RkhJ

  4. 4.

    The concept “hub” refers to a node where the main activities of the company are centralized. These hubs are chosen due to a certain parameters such as location, workload, transportation cost, distance O/D and customs regulations among others.

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Correspondence to Susana Val .

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© 2016 Springer International Publishing Switzerland

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Val, S., Kehinde, A., Machado, A., Ciprés, C. (2016). Supply Chain Network Design: Tackling Regulations, Lead Time and Cost-Efficiency. In: Lu, M., De Bock, J. (eds) Sustainable Logistics and Supply Chains. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-17419-8_6

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