Case Study Of Exxon Mobil

1943 Words 8 Pages
Introduction
One of the most underrated aspect of business management is supply chain management. (Gemma, 2014) Supply chain is a network among different organization which are linked together by upstream and downstream linkages, due to the specific purpose. (Stadtler, 2015) The Supply chain is faced with different issues such as rapidly soaring multinational corporations and strategic partnership, global expansion and lack of specific source in some lands. In addition, there are some environmental concerns. All these issues demonstrate the need of efficient word-wide supply chain. Business world is changing constantly and therefore, a significant challenge is to stay in the competition, and all organizations are forced to change with new
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The 70 to 80 brands will be remained, include 90 percent of the company’s sales and more than 95 percent of its profit in the past three years. Marketing, R&D, manufacturing and the company’s supply chain will benefit from having fewer brands. First of all, company can focus on innovation and increase the quality of the most favourite brands and products from consumer’s view, and also decrease the cost of producing yields which have not a great return profit to company. (Lafley, 2014)
Exxon Mobil Supply Chain
According to figures 3 and 4, Exxon Mobil is one of the most effective companies in oil and gas industry. After three Asian-middle east oil companies, Exxon Mobil has taken the fourth place in terms of oil and gas extraction. The company is known as Exxon, Esso and Mobil brand names and established over 125 years ago. It has been developed from a regional marketer in the U.S to one of the largest oil companies in the world, nowadays, its products drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that cover many consumer chemical
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(ExxonMobil-CEO, 2013)

Figure 4: Return on Average Capital Employed
Source: Exxon Mobil Annual Report (ExxonMobil-CEO, 2013)
Supply chain management was began in Exxon Mobil when they started to define world-wide projects, therefore, the need of co-operating with third-parties was required. Exxon Mobil is working with 160,000 suppliers in entire the world. Suppliers’ capability based on operational criticality and the level of risk associated with the material are assessed by company. All suppliers are monitored in terms of Health, Safety and Environmental requirements, Technical qualifications, Financial Qualification, maintenance and control processes, Product quality assurance (ExxonMobil-Website, 2014).
The general supply chain in oil and gas industry is provided in figure 5. There are two different processes of downstream and upstream in this industry.

Figure 5: Oil Supply

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