Trucking and Warehousing in an Oil Company

• The scale
• 3PL services in this industry
• Industry related complexity factors
The Scale
Oil logistics involves activities such as moving cargo for large projects. The movement of complex
and cumbersome parts requires preparation, strategy, and organization. This calls for a need for
reliable means of transport from the oil field, to the refineries and consequently to the wholesale and
retail market.
Transportation should be on time as per the timetable provided for every carrier. It is clear that the
supply chain management of the oil industry is complicated and unique to every company. This is
due to the sensitive nature of the goods provided. Regardless, there is a very high demand for them.
3PL Services in this industry
The use of standardized third-party logistics services is quite common in this industry. Others
choose to use rail or ship their merchandise.
The complexity factor
To conduct this business with ease, it is advisable to partner with a 3pl company. Drilling and
fracking operations in oil field require massive quantities of materials at the correct numbers,
sequence, and time. This is because the arrangements which are done here affect the outcome of
the project in monetary terms. If they arrive late, then this means a significant loss is to be
encountered.
It is crucial to explain your companies particular needs to your logistics partner so that your goods
can be transported to the exact place of demand at the correct time. Oil industries go through
phases in this business.
These include;
• Exploring
• Producing
• Refining
• Distribution
Due to this, petrochemicals are often transported for long distances from the oil field to their
intended market. It is easier to manage these by letting a 3PL partner help wholly or partially in these
operations. It is a company’s mandate to satisfy the need of the consumers whenever the need
arises. Keeping in mind that this is a constant requirement since the bi-products are relied on for
daily use.
List of Sources