Study Of Second Delivery Optimization Of Refined Oil By PetroChina Shanghai Marketing Company

Due to energy shortage caused by rapid economic development across theworld, information technology has been vastly applied in logistic managementof oil companies in developed countries, aiming to improve market reactiontime and reduce logistic related cost in order to maximize their core competency.In the mean time, Chinese oil companies still struggle with low logisticalmanagement efficiency and high inventory and impairment cost due to lack ofimplementation of information technology.In the past, most Chinese oil companies took “pull” approach when dealingwith oil delivery. Oil products were only delivered to sales subsidiaries afterthese subsidiaries made a call for delivery while the exact volume of deliverywas estimated by subjective judgments of experienced individuals. The lack ofscientific calculation had resulted in high logistic cost.Now although many Chinese oil companies have shifted from “pull” to“push” approach in oil product secondary distribution, the lack of understandingin client demand has resulted in a much slower progress in process optimizationand hence unable to implement this new approach on a national scale.Based on these observations and after referenced with large amount ofacademic journals and theoretical studies, this article has used the PetroChinaShanghai Marketing Company as a case study to present you the analysis of thecompany’s key improvements in core competency by optimizing its logisticalmanagement by implementing information technology systems. This article alsosummarizes the problems and solutions that PetroChina Shanghai MarketingCompany faces post process optimization to provide companies in the s ameindustry a strong reference.