sylvaco company oil

8/2/2019 Sylvaco Company Oil

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{

Global Operation,

Logistics, and SCM

of

Sylvaco Oil CompanyBy:

Eze SundayMohammed HaniniObi Emmanuel C.


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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

Introduction


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The Sylvaco Oil Company seeks to improve life ofNigerians through enlarging volumes of sales of

Nigerian crude oil productions which will create moreactivities of employments for masses while employingevery measures of avoiding wastes for increasingearnings of the Nigerian National Petroleum Company

(NNPC) to continuously add value to economy of thecountry.

Mission of the Company


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The company wants to be highest seller and shipper ofcrude oil in Nigeria with lowest cost and lowest time

of shipping while satisfying the needs of customers,making good profits and being in harmoniouslymutual benefits with the customers, producers, itsemployees, governments, and the Nigerian masses.The company will be the most-sought-for of

refineries and crude oil producers being the mostlucrative source of conducting businesses

Vision of the Company


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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.

Seven Elements of the Company Vision


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Model of the Company Vision


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Social Events

STEEP Analysis of Nigeria


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These Factors that need consider when makingsuch 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

Technological Events


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The case study indicates that to structure globallogistics that is value adding, tariff should be put intoConsideration; 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.

Economic Events


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The main factors to consider in restructuring globallogistics 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

Ecological Events


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Political Events


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VRIO Analysis


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Forge relationship and inter-organizational relationships of mutualbenefits of transparency with refineries, producers of crude oil in theNigeria oil wells, and the crude-oil shipping companies.

Implements ERP/SAP at nodes of network of its inter-organizationalrelationships

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

Assumption of Overall Strategy


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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

Market


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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 Demand of Barrel Per Day

SHANGHAI Refinery 400, 000

Contd


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According to our pact of business, these are the strictrequirements as stipulated by the refineries listed above:

The refineries agreed to pay $ 106 per barrel of Bonny Lightcrude 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 atthe refinery sites a day before its refinery processes

.

Pacts of Business


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Operational Strategy


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Needed Resources


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Contd


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Reliability of Service


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Network Structure


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Port Harcourt Oil Well

This oil well is responsible for manufacturing9,000 000 barrels of oil daily for our company,

and ensure that they are properly filled in the40ft tankers and parked in the Port Harcourtstorage place to be transported to Warri storageplace

Sites Roles


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Imo State Oil Well

This site of the supply network manufactures 2,000000 barrels of crude oil daily and ensures that theyare properly filled in the 40ft tankers and parked inthe Imo state storage place to be transported to Warristorage place

Contd


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Warri Oil Well

This site of the supply network manufactures5,324 000 barrels of crude oil daily and ensuresthat they are properly filled in the 40ft tankersand parked in the Warri storage place to betreated and transported to Warri Storage Place

Contd


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Warri Storage Place: The 40ft tanker of petrol istreated with chemical that is produced in aclose place in Warri, and get transported toLagos storage.

Lagos Storage: Lagos storage is site close to theshipping site from which crude is shipped to

the USA storage place, Europe storage place,and Chinese storage place

Contd


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USA Storage Place: since Sylvaco Oil Company has to dailymeet 4,60500 barrels demand of crude oil by US refineriesand it takes about 14 days to shipped to the US storageplace, the company will resolved to produce 6,647000

barrels of crude meant for two-week demand by USrefineries, and store it in the US storage place. From thestorage place, the daily crude oil demand of 4,60500 barrelsof crude will be daily transported to respective refinerysites: 250,00 barrels will be daily transported to US

Marathon Refinery, and 210,000 barrels of crude will bedaily transported to Citgo refinery.

US Storage Place


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Chinese Storage Site

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

The same is applicable to Europe Storage Site.

Contd


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Thanks!

sylvaco company oil

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