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Challenges for Supply Chain Management (Logistics Management) in Petroleum Industry

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Digitalisation: Opportunities and Challenges for Business (ICBT 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 620))

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Abstract

Supply chain management in the government sector is a fundamental aspect of economic stability and development. Notably, supply chains have often been considered the vertical sequential flow of interdependent transactions that eventually add value for the final consumer. By keeping in view the importance of supply chain management in the petroleum sector, this article addresses the challenges confronted by the Emirati petroleum industry. The researcher selected a sample of n = 205 participants and applied structural equation modelling to examine the proposed impacts of the challenges on the supply chain management in the petroleum sector. Findings showed that all the challenges (Risk management, digital transformation, shipping cost, and supply chain volatility) have a significant impact on the supply chain management in the Emirati petroleum sector. The respondents widely agreed that these factors are creating several challenges as the company lacks a skilled system to cope with them. Thus, it is concluded that there are many challenges in the Emirati supply chain management of the petroleum industry despite they have good supply chain management. These challenges need to be solved by the petroleum industry with the use of proper approaches and customizing their supply chain management system to cope with the challenges raised during the contemporary era.

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Authors and Affiliations

  1. Universiti Teknikal Malaysia, Melaka, Malaysia

    Naser Hamad Obaid Zohari

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  1. Naser Hamad Obaid Zohari
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Correspondence to Naser Hamad Obaid Zohari .

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Editors and Affiliations

  1. Northern Cyprus Campus, Middle East Technical University, Kalkanlı, Türkiye

    Bahaaeddin Alareeni

  2. College of Business and Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

  3. University College of Bahrain, Manama, Bahrain

    Reem Khamis

  4. Lebanese American University, Beirut, Lebanon

    Rim El Khoury

Ethics declarations

This research has two primary limitations. First, this research is based on the Emirati petroleum company while, its applicability in Gulf and other regions is questionable. Second, the researchers only selected four basic challenges, whereas there are many challenges faced by ADNOC and other petroleum companies in the United Arab Emirates that further narrow down the scope of current research.

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Zohari, N.H.O. (2023). Challenges for Supply Chain Management (Logistics Management) in Petroleum Industry. In: Alareeni, B., Hamdan, A., Khamis, R., Khoury, R.E. (eds) Digitalisation: Opportunities and Challenges for Business. ICBT 2022. Lecture Notes in Networks and Systems, vol 620. Springer, Cham. https://doi.org/10.1007/978-3-031-26953-0_41

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  • DOI: https://doi.org/10.1007/978-3-031-26953-0_41

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  • Online ISBN: 978-3-031-26953-0

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