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Oil and gas companies operate in complex environments where they face the challenges of working globally, contending with dynamic demand and supply balances for their products, and maintaining a relentless focus on return on capital employed. In this environment, the supply chain plays a critical role.
Figure 1: SUPPLY-CHAIN LINK IN THE OIL AND GAS INDUSTRY Once a supply-chain has been established, it still calls for improvement. Making necessary improvements over time allows the firm to gain competitive advantages in the marketplace. A firm, believing its supply-chain has been optimized, can easily loose competitive advantages by being resistant. The following eight strategies can be adopted for improving oil and gas industry supply-chains.