[Trade-Offs in Supply Chains Against the Challenges of Fuel Price Hikes]

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION6

Background6

Hypothesis7

Area of Research8

Aims and Objectives8

CHAPTER TWO: LITERATURE REVIEW9

Supply Chain9

Characteristics of Supply Chain10

Functions of the Supply Chain (or supplies) internal11

Supply12

Manufacturing13

Focus of the processes in a supply chain.15

The chain of Petrol production16

Collaborative Logistics18

Collaboration and supply logistics19

How to prevent disruptions in the supply chain of petrol20

CHAPTER 3: METHODOLGY28

Supply Chain Research Approach28

Qualitative Approach28

Normative Theory29

Interpretive Research30

Axiology Theory30

Advantages and Disadvantages of Approach31

PROPOSED METHODOLOGY31

Sampling Technique32

Selecting and Establishing Research Design33

Gathering Information34

Data Analysis and Interpretation35

Quick Overview35

Editing and Cleaning36

Detailed Analysis36

ETHICAL RESEARCH ISSUES37

The Right to be informed (Informed Consent)37

The Right to Privacy and Confidentiality37

Deception and Harm38

CAPTER 4: FINDINGS AND ANALYSIS39

Concept of Supply Chain Management49

Importance of Supply Chain Management in the Petroleum Industry50

Unique Features of the Petroleum Industry Supply Chain51

The Petroleum Supply Chain in UK57

Non-Value Added Activities in the Petroleum Supply Chain62

Role of Information Technology in the Petroleum Industry Supply Chain63

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS65

Improving Performance of the Petroleum Supply Chain: Some Suggestions66

REFERENCES70

CHAPTER ONE: INTRODUCTION

Background

The cost of fuels is rising and in near sight, the consequences for companies that import, export, ship or manufacture goods there will be little respite. Also companies that only just consume materials are affected, as well as retailers and consumers. In many respects, rising fuel costs are the “universal influencer” of business strategy and activity (Gosier R. et al. 2008).

Further complications are invited when the issue is fuel cost's unpredictability steps in the frame. It is difficult to understand and create a spectrum of the top price and whether how much prices might fall in the near future. Predictions therefore are present but unreliable due to global changes all over the map. However despite uncertainties in predictions, companies just can't afford remain silent static. The consequences are and will be extreme and also risky for business growth. In an ever-present norm there is a likelihood that competitors might respond pro-actively and creatively and as a result gain an undisputed competitive and overwhelming edge over slow reacting companies (Gosier R. et al. 2008).

In today's world, the supply chain and supply chain decision makers are the main activists that devise and implement strategies that deal with the impact of fuel cost fluctuations on company's business dealings and growth. Their task is to manage and control supply-chain from product and market development to company service. But in greater aspect, different actors of supply chain functions must take individual and collective action for the success of strategies.

Most supply chains were designed in an age of significantly lower fuel prices. Global sourcing and manufacturing decisions counterbalanced longer transport distances for cheaper ...