Global Operation, Logistics, and SCM

of

Sylvaco Oil Company

By: Eze Sunday Mohammed Hanini Obi Emmanuel C.

Introduction
Sylvaco Oil Company is to-be realized firm which will perform the followings: Linking Refineries in US, China, and Europe
to crude-oil Producers in Nigeria Oil wells Place demands and supplies to refineries Conduct Sales and Balancing payments

Mission of the Company

The Sylvaco Oil Company seeks to improve life of Nigerians through enlarging volumes of sales of Nigerian crude oil productions which will create more activities of employments for masses while employing every measures of avoiding wastes for increasing earnings of the Nigerian National Petroleum Company (NNPC) to continuously add value to economy of the country.

Vision of the Company

The company wants to be highest seller and shipper of crude oil in Nigeria with lowest cost and lowest time of shipping while satisfying the needs of customers, making good profits and being in harmoniously mutual benefits with the customers, producers, its employees, governments, and the Nigerian masses. The company will be the most-sought-for of refineries and crude oil producers being the most lucrative source of conducting businesses

Seven Elements of the Company Vision

Highest seller and shipper of crude in the country - Lowest cost - Lowest time of shipping - Meeting customer satisfaction - Recording good profits - Harmoniousness with surroundings of the company - To be the most Lucrative source of doing business.

Model of the Company Vision

STEEP Analysis of Nigeria

Social Events

Technological Events
These Factors that need consider when making such changes as in the case of the Convertors : -> Cost of each new added processes -> Repeatability of the process -> Regulations -> Nature of product -> Effectiveness of a process

Economic Events
The case study indicates that to structure global logistics that is value adding, tariff should be put into Consideration; for example: -> Baxter Convertor explored the benefits of cheap

labour in Mexico because of Mexico-US tariff pace

which almost zero tariff for North American firms -> This instigated the firm to engage in inbound manufacturing to produce cheaper products.

Ecological Events
The main factors to consider in restructuring global logistics with respect to tariff regulations: -> Transportation network of countries involved -> Transportation regulations of the company -> Appropriates site to localize plants -> Border-checking time -> Tariff pact -> Legal Impositions

Political Events

VRIO Analysis

Assumption of Overall Strategy

Forge relationship and inter-organizational relationships of mutual benefits of transparency with refineries, producers of crude oil in the Nigeria oil wells, and the crude-oil shipping companies. Implements ERP/SAP at nodes of network of its inter-organizational relationships Ultra-optimize its global logistics operations Ultra-optimize its global supply chain management Implement good information and communication Technology Maintain the Environment to foster harmony between natives and company Offer aids of development to the natives. Obtain required capitals. Mapping our requirements and capacities

Market
European Refineries Demand of Barrel Per Day Schwechat Refinery, OMV, 30,000 Fredericia Refinery (Royal Dutch Shell), 34,000 Kalundborg Refinery, (Statoil), 10,000 Naantali Refinery, (Neste Oil Oyj), 40,000 Rheinland Werk Godorf Cologne Refinery 62,000 Elbe Minerallwerke Hamburg-Harburg Refinery 40.000 Erdlwerk Holstein Heide Refinery 90.000 Total Demand of Barrels Per Day 306, 000

Contd
USA Refineries Demand of Barrel Per Day Marathon Petroleum Company 250,000 Citgo Lake Charles Lake Charles LA 210,500 Total Demand of Barrels per Day 460,500
Chinese Refineries SHANGHAI Refinery Demand of Barrel Per Day 400, 000

Pacts of Business
According to our pact of business, these are the strict requirements as stipulated by the refineries listed above:

The refineries agreed to pay $ 106 per barrel of Bonny Light crude oil compare to the 107 per barrel of the market price, and $ 22, 000 for every 40ft of crude oil shipped. Every required shipped barrels of Crude oil is agreed to be at the refinery sites a day before its refinery processes

Operational Strategy

Needed Resources

Contd

Reliability of Service

Network Structure

Sites Roles
Port Harcourt Oil Well This oil well is responsible for manufacturing 9,000 000 barrels of oil daily for our company, and ensure that they are properly filled in the 40ft tankers and parked in the Port Harcourt storage place to be transported to Warri storage place

Contd
Imo State Oil Well This site of the supply network manufactures 2,000 000 barrels of crude oil daily and ensures that they are properly filled in the 40ft tankers and parked in the Imo state storage place to be transported to Warri storage place

Contd
Warri Oil Well This site of the supply network manufactures 5,324 000 barrels of crude oil daily and ensures that they are properly filled in the 40ft tankers and parked in the Warri storage place to be treated and transported to Warri Storage Place

Contd

Warri Storage Place: The 40ft tanker of petrol is treated with chemical that is produced in a close place in Warri, and get transported to Lagos storage. Lagos Storage: Lagos storage is site close to the shipping site from which crude is shipped to the USA storage place, Europe storage place, and Chinese storage place

US Storage Place

USA Storage Place: since Sylvaco Oil Company has to daily meet 4,60500 barrels demand of crude oil by US refineries and it takes about 14 days to shipped to the US storage place, the company will resolved to produce 6,647000 barrels of crude meant for two-week demand by US refineries, and store it in the US storage place. From the storage place, the daily crude oil demand of 4,60500 barrels of crude will be daily transported to respective refinery sites: 250,00 barrels will be daily transported to US Marathon Refinery, and 210,000 barrels of crude will be daily transported to Citgo refinery.

Contd
Chinese Storage Site The site close to the refinery is for storing the 5,600000 barrels of crude meant for meeting two-week demand by the Chinese refinery. On a daily basis, the 400, 000 barrels for everyday demand will be daily transported to the Shanghai refinery close to the site.

The same is applicable to Europe Storage Site.

Thanks!