Exxon Supply Chain

1943 Words 8 Pages
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 situations and conditions. Supply chain is one of the critical tools to achieve this aim. Indeed, the whole world is a large
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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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