Integrated supply chain management approach in petroleum industry: a case of British Petroleum Southern Africa.

Abstract

The broader literature shows that supply chain uncertainty in the petroleum industry remains the challenging issue as the world changing, where several studies focus on the Collaboration Planning, Forecasting and Replenishment (CPFR) model in the petroleum industry. Industries find it challenging to successfully match their processes for demand planning to the unpredictable environment in which they work. Lack of coordination would probably lead to unreliable and erroneous forecasts, which may ultimately jeopardise a company's long-term existence. One of the key components to enhancing supply chain performance is the ability to effectively predict demand in variable situations. This study aims to establish the level of the integrated supply chain of activities in British Petroleum and to enable real time information sharing, along with an integrated network through (CPFR) to enhance cooperation between supply chain activities. The research methodology for this study included a description of the precise methods used to gather and analyses the data, as well as the research approach, population, sampling strategy, data collecting, and data analysis. This study adopted quantitative method that entails the numerical value allowing the researcher to translate numeral data to the relevant statistics. The study further used questionnaires research tools to collect data. Furthermore, according to the research most of the respondents strongly agreed that the terminal collaborate with other internal operational department in order to ensure that information is shared across the organisation so as to enable value creation in the industry, minimising delays and maximising efficiency and product quality. As a result of this finding, the petroleum industries need to shift their focus more to collaborative supply chains, which can help to mitigate the challenges associated with uncertainty in the business. Collaboration is crucial and is expected of all parties involved in the supply chain.