| Summary: | Abstract
Purpose – The purpose of this research is to examine the challenges faced in oil and gas Supply Chain (SC) during the oil price fluctuations, provide recommendation on a way to reduce uncertainty in SC of oil and gas industry.
Design/methodology/approach-The companies chosen for this research are called BP and two service companies: Schlumberger and Halliburton. In order to carry out this study, a qualitative research method was applied. Primary data was gathered through semi-structured interviews via face-to-face meetings as well via Skype calls with SC professionals. Also, secondary data from various sources such as books and articles were applied in order to create theoretical frame of reference for the dissertation. Porter’s five forces were used in order to carry on analysis.
Findings-The safety, quality, macroeconomic environment, sustainability, environmental management and logistics costs are sources of risks and uncertainties. Applying Porter’s five forces the following recommendations were made: further segmentation the SC, sourcing form more low-cost suppliers, creating supply backups in order to reduce uncertainty, regionalising some parts of SC, monitoring of uncertainty and risk levels in individual countries to commercial, political and economic trends.
Originality/value- There is limited number of literature on the selected topic. Thus, this dissertation can be used as a pilot for further research. This thesis would contribute towards knowing how to reduce SC uncertainties during oil price crash.
Keywords- Supply Chain Management, Price Fluctuations, Supply Chain Uncertainty, Oil Industry
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