Abstract
Oil industry in India has entered the competitive world, and each organization used probing strategies to reduce cost. India is a non-oil-producing country, and the scope for this lies in reducing supply chain cost in downstream logistics. This research provides an integrated model of key enablers for transporter’s performance in downstream logistics excellence of Indian oil sector to provide oil marketing companies’ a direction for design of future strategies to reduce downstream logistics cost. The sequential mixed-methods design is adopted. It identifies the enablers through literature review and interviews with transporters, working managers, and logistics experts (qualitative), and then, interpretive structural modeling (ISM) and MICMAC analysis (quantitative) are used to develop the diagraph and matrix to establish the contextual relationship and find their role and influence on each other. This readymade, unique, and unified model provides enablers for transporters’ performance in different individual categories, namely, dependent, independent, and autonomous enablers, and link them based on their driving power and dependence power along with their influencing behavior to enable transporters, working managers, and top management to focus on for reducing the logistics cost and shall add value for the ultimate customers. The academicians shall be benefited by appreciating practical aspects of this business.
Highlights
Customers are ready to shell out more money for quality of goods and service; i.e., the transportation system must work effectively to distribute those goods on customer’s demand [3,4,5,6,7,8,9,10]. e oil marketing companies (OMCs) in India, want strategies to improve efficiencies to reduce cost in downstream logistics because the number and width of services by logistics, related to product, may play a significant role in the competitive scenario [11, 12]. e only specific use of transportation is to satisfy the requirement for mobility, since transportation can only exist if it takes people and freight around. e transportation, in all businesses, is expected to be flexible and delivered in time, which increases the importance of an efficient and reliable transportation facility
For the OMCs, the customer service is very important to create the difference between various performance aspects of firms, which can improve the market share of the companies. e transportation plays a major role in customer satisfaction. e customers of OMCs have different expectations for customer service, which has been identified by the oil marketing firms, and they are interested in developing and embracing some strategy to reduce the supply chain cost, for which transportation of petroleum products is one area, where organizational effectiveness can be made more competitive and achieve organizational goal of improved customer value by better utilization of resources and in turn increased profitability
In oil industry in Indian downstream logistics from the terminals and depots to the retail outlets and bulk consumer transportation of petroleum products, transporters’ tank trucks are on contract as all the terminals and depots cannot be near the ultimate consumer. e transportation service needs to change for improvement to add value to the product, which can satisfy and attract customers by making them feel important and wanted. e enablers are the change agents as per change management theory, which acts as a catalyst in change from one level to another level
Summary
E customers of OMCs have different expectations for customer service, which has been identified by the oil marketing firms, and they are interested in developing and embracing some strategy to reduce the supply chain cost, for which transportation of petroleum products is one area, where organizational effectiveness can be made more competitive and achieve organizational goal of improved customer value by better utilization of resources and in turn increased profitability. E transportation system working efficiently and effectively can improve the bottom line of the firm Based on this argument, the paper identifies the enablers for transporters’ performance in oil marketing companies of India to have more satisfied customers, resulting in more profit to the company. It will reduce the risks from the complete system of transportation of petroleum products to improve the efficiency, reduce the cost, and improve the bottom line of the companies, affecting the economy of the country positively. e research questions are what are the factors that can enable reducing the waste and risks in the transportation of petroleum products in India to enable the enhancement of downstream logistics performance and how these factors are contextually related to each other
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