A Study On Improving Solution Of Refined Oil Logistics In Hunan Branch Of Sinopcc

With China’s refined oil market open to foreign company comprehensively, theforeign oil companies enter into China refined oil market, broke the long termmonopoly pattern by CNPC and SINOPEC. In the refined oil market, the homogeneouscompetition makes price competition as the main competition means. To maintain lowprice, we must to reduce the operation cost to create a price space. In the refined oiloperating costs, logistics costs accounted for70%of the total cost, therefore, reducelogistics cost becomes the key to reducing the operation cost. Unfortunately, thedomestic refined oil market long-term oligopoly, influenced by administrative power,"heavy production, light circulation", the inefficient product logistics distributionsystem make the domestic refined oil circulation cost high for a long time. In the faceof foreign oil giants enter into our domestic market and fast layout, we urgently needto improve our existing logistics distribution system.In this paper, we choose Hunan Branch of Sinopec as the research object, andstudied the improvement program of refined oil logistics and distribution system. Onthe basis of description in detail about Hunan Branch logistics management structureas well as the logistics mode of operation, following problems of Hunan Branch wasgiven: the first logistics transportation structure is irrational, unreasonable layout of oildepots and low utilization, serious unreasonable transportation, passive secondarydistribution, low level of information technology, storage and transportation facilitiesis drop behind and low level of automation. This problem have become importantbottleneck restricting the refined oil logistics modernization of Hunan Branch.In response to these issues, this article choose Hunan Branch of Sinopec as ourstudy case. We analyse the status and problem of its refined oil logistics, and thefollowing improvement program were proposed, which include striving to develop thepipeline transportation; distributing oil depots rationally according to economicregionalization; rational organization of transportation of refined oil; Withvendor-managed inventory (VMI) to make refined oil distribution initiatively; improvethe level of information; strengthen the modernization and automation of storage andtransportation facilities. In the mean time, Empirical calculation of specific programswere given to prove the feasibility of the program, the result prove that the programcan really improve the logistics efficiency, reduce the refined oil logistics costs, so as to further enhance the level of logistics management, improve the economic benefits ofthe refined oil market.