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Petrochemical Enterprises Logistics Development Strategy - Shanghai Petroleum Chemical Integration Transformation

Posted on:2004-11-28Degree:MasterType:Thesis
Country:ChinaCandidate:Z D WangFull Text:PDF
GTID:2206360125961246Subject:Business management
Abstract/Summary:PDF Full Text Request
Similar to other industrial enterprises, the logistic system of the petrochemical enterprise provides services for production and distribution and takes the responsibility for storage and transportation of raw materials and products. The current logistic system of the petrochemical enterprise is a complete system, generally including the transportation by sea, railways, rivers and roads and storage. However, set up on the basis of planned economy in the beginning, the system has obvious shortcomings in its structure and organization, assets distribution, personnel, business flow, service functions, etc. The system with these shortcomings cannot satisfy the demands of the open society any more and these shortcomings will not only hinder the development of its logistic system but also weaken the competitive edge of the main industries of the petrochemical enterprise.The logistic system of Shanghai Petrochemical Company, Ltd (SPC) is a general term for all the units related to petrochemical production, storage and transportation of products and operation and management. It mainly includes SPC Storage and Shipping Company and SPC Railway Transportation administrated by Supply and Marketing Company, Shanghai Petrochemical Trucks Transportation Company, the departments responsible for the storage and material handling in Five Departments, and the Logistic Company Ltd. in Shanghai Petrochemical Industrial Zone.From the perspective of modern logistic theory, the high cost, low efficiency, and poor service quality of traditional pattern of storage and transportation has influenced the competitive edge of the products of the company and hinder the development of its logistic system. Up to now, the logistic system of SPC has been operating on the basis of traditional theory of storage and transportation, which can be seen most obviously in the separation of various ways of transportation and the separation of storage and transportation. Although the system has complete facilities including trucks, ships and warehouses, it is far from modern logistic operation theory. The traditional management system is out of date and is eventually to influence the overall development of the company. Therefore, it is necessary to reorganize the logistic system of SPC and rebuild its logistic businessflow on the basis of modern logistic management theory so as to expand the service scope of the logistic system, increase the individuality and potential value of logistic services The new system will provide energetic logistic services for the company and create favourable conditions for the third-party market-oriented logistic enterprises characterized by specialization, socialization. As a backbone of the industry, the study in its logistics integration can give us the analyses of the main problem, which in logistics development of petrochemical enterprise.From a strategic perspective, this paper attempts to analyze how to achieve the optimization of the logistic system of SPC through the integrative operation of the logistic system. The optimization means the optimal control and coordination of time, space, cost, etc. of the logistic activities. In this way, the overall cost of the company can be reduced and the service efficiency of different production departments can be increased, thus making SPC more competitive.This paper includes four chapters. Chapter one introduces the current development of the logistic system, the necessity and the urgent need for accelerating the integration of the system and the challenges and opportunities the logistic system are now facing. Chapter two analyses the advantages and disadvantages of the logistic system, including its current development, rts key functions, and its problems and establishes its strategic position. Chapter three discusses the development strategy of the logistic system of the company and describes several current patterns of logistic integration. The establishment of the aim and direction of the development is based on the analytical method of SWOT and strategic matrix. Chapte...
Keywords/Search Tags:petrochemical logistics, integration, organization model, strategic
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