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Development of outsourcing strategy of transportation of oilfield services company

Student: Muratov Ravil`

Supervisor: Tamara Levina

Faculty: Faculty of Logistics

Educational Programme: Bachelor

Year of Graduation: 2014

<p>Based on the literature review, the complex of measures and the sequence of their realization in the form of stages of development of logistics outsourcing strategy of transport operations was proposed in the paper. This sequence of stages was used on the example of a large oilfield services company. The effect of the developed strategy of outsourcing on modification of the logistics network configuration, business processes, organizational structure, system of controlling and information systems was examined in the research. First, the logistics mission and strategy were formulated, logistics KPI of strategic level were defined, target values and methods of KPI calculation were set and the logistics goals and objectives were balanced. Second, the existing company logistics network was reorganized, i.e. the types and quantity of logistics intermediaries in transportation of various cargos were defined and logistics channels were changed in accordance with the new structure of transport contractors. Third, the policy in the field of logistics providers management was developed: the degree of integration with intermediaries and intermediaries selection criteria were defined. Fourth, changes in business processes and organizational structure of the logistics department were demonstrated. In addition, system of logistics KPI for measurement of the logistics department and logistics intermediaries performance and system of information support were developed. Moreover, the key segment of the Russian oilfield services market and peculiarities of oilfield service companies&rsquo; freight transportation were identified. Finally, the economic effect from the proposed measures implementation was estimated, that demonstrated that measures will provide significant potential for reduction of the company&rsquo;s expenses.</p>

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