| Like many other fresh-looking economic concepts, Logistics has been there since ancient time, it's not something new to our society. Bernard J.La Londe, famous logistics scholars believe: logistics activities originated from trading resulting from production surplus among different regions, especially driven by industrial revolution and improving productivity, logistics have been developed rapidly.Logistics concept has been introduced to China since 1990s as China has been gradually transformed from planning-oriented economy to market-oriented economy. Since then modern logistics are becoming more and more valued and accepted by scholars and business professionals. More and more study has been put into this area. As to put logistics into business practice, China enterprises have far been lag behind. Manager in China companies have limited understanding of the role that logistics can play in business management. As a result of basic understanding of logistics concept, development of logistics in China is under performed, however, the increasing role logistics is playing in adding value to product and improving company's competitiveness have been pushing logistic study to ever high level, and this momentum has been further prompted by the combining factors of economic reform, changing market environment, globalization and information technology. Given that China has joined WTO, how to establish modern logistics management to adapt oil industry to new global environment is becoming increasingly important hot topic.As a result of SOE reform, oil industry was separated into two parts, quality part as petroleum exploration, production, refine, chemistry and sales entities have been listed in stock market, while worse part such as supply enterprises have been divested, and these companies are now facing market competition, without protection of government umbrella, they are now under great threat to survive in the competitive market.Currently, oil supply companies have experienced lots of difficulties, although they can still maintain certain market share under the protection of internal trading, they are not sustainable. As stock market is becoming mature and government are now put strict surveillance on internal trading, to find a feasible strategic development plan for oil supply companies is pressingly becoming a life and death matter,this article was written with clear purpose to create an innovative business model for oil supply industry. This new model will allow Oil Company to become a profit-generating power instead of cost center; meantime this will also serve an engine of development of third party logistics in oil industry. |
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