Logistics and Operations for Oil and Gas: Spring 2019 Report on Sasol

This report provides an in-depth analysis of Sasol's logistics and operations within the oil and gas industry. It identifies key challenges, including increasing visibility, poor logistic management, low production, and asset management. The report examines Sasol's operations, particularly its liquid fuel supply chain, considering economic and environmental performance. It compares logistics and operations in Southeast Asia and West Africa, highlighting regional differences. Additionally, it addresses human behavioral challenges faced by Sasol's staff, emphasizing the need for effective training, decision-making, and cultural sensitivity. The report concludes by offering insights into improving operational efficiency and achieving business objectives in a global context. This assignment is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

LOGISTICS AND OPERATIONS
FOR OIL AND GAS SPRING 2019

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Determining the 4 main challenges faced by oil and gas industries........................................1
2. Taking a product in account which have been sold by South-east Asian and West African
B2B consumers............................................................................................................................3
3. Comparing the services related with logistics and operations management implications for
delivering products in market......................................................................................................4
4. Identification of human behavioural challenges facing their staffs.........................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term logistic and operations can be defined as per analysing the flow of operations
which would be in an organisation and analysed as per the flow of operational practices. In
accordance with this, it can be said that it determines the floe of operations from the point of
origin and the place where the material is being supplied. However, operating production
business is being challenging with relation to mange such logistic operations, rates, cost and
legal consequences on the global level. In the present assessment, there will be determination of
challenges as well as internal operational aspects of Sasol. There will be examination of the
logistics and operational activities which are being performed by oil and gas industry in the
global market.
MAIN BODY
1. Determining the 4 main challenges faced by oil and gas industries
In accordance with operating the logistics and operational activities in oil and gas industry
there have been various challenges which affects their growth. To manage the productivity and
profitability of these organisations on which it is necessary that the business must have effective
control over costs and reserve the best revenue generation. As per analyse the global operations
of the oil and gas industries on which there has been several obstacles that has been faced by the
organisation such as:
1. Increasing visibility into complex situation affects the operational activities:
There has been determination of issues which in turn affecting the operations of the firm
such as controlling costs, optimising prices, performance of employees as well as in managing
the assets. It has been ascertained that, there have been influences of physical and political
challenges which in turn would affect the environment that will not being able to bring the
qualitative sustainability in organisation (Stephenson and Agnew, 2016). There can be impact of
changing market prices, fluctuating demand, regulatory regimes as well as multiple suppliers
stated in the market. These are the factors which affects the operational aspects of the business
that would create problems for the operations as well as in managing the employee efficiency.
In relation with overcoming from such risk there must be increment in the visibility for
operations which will impact possible on increasing the performance, controlling costs as well as
for mitigating the risks (Ahmad and et.al., 2016). Therefore, such ascertainment will result in
manging the health and safety risks as well as financial aspects of the business.
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2. Poor logistic management:
It has been analysed that there are various products which are being produced by the oil
and gas industries. Therefore, in order to manage the operations for the businesses there will be
requirement for improving the collaboration of industry with the other industries (Key
Operational Excellence Challenges Facing the Oil and Gas Industry, 2018). However, in
relation with improving the services there must be effective collaboration with the companied
which are stated across the national boundaries.
3. Less production:
In oil and gas industries there is comparatively higher demands for the oil and gas
products which are being stated in the market. Therefore, as if the number of workforce is less
than the expected employees in the organisation on which it can be said that, the firm will have
lack of productive efforts. On the other side, in relation with managing the operational aspects of
the firm where it has been necessary that there must be proper training and development
operations facilitated to the newly appointment workforce (Raut, Narkhede and Gardas, 2017).
The guide and trained them in accordance with meeting the operational aspects and making
qualitative development in operations. Moreover, it has been required that the firm must develop
the high-performance culture in the organisation which would motivate the staff to implicate
efforts accordingly.
4. Asset management:
It has been denoted as the one of the main challenges which affects the operational
growth of an oil and gas industry. It involves various luxury assets that were used in production
of such products, it involves, machineries, refinery plants, equipment as well as premises for the
business (Li, 2016). Moreover, maintaining and satisfactory management of such assets will be
effective in terms of leading the firm in retaining the adequate efficiency as well as attaining the
targets at the right time. It approaches the business in meeting the market demands as well as
bring sustainable increment in the operational goals for such industries.
Critical examination of logistic and operations management implications to identify
challenges for Sasol
On the basis of various challenges which have been affecting the operational aspects of the
business on which managing the operations would affect the firm in managing operations in
retaining the targeted aims. Sasol has been engaged in producing as well as delivering the oil and
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gas products among various nations which have been retaining the adequate market share
(Gardas, Raut and Narkhede, 2018). To improve the logistics and operational activities in the
organisation there have been requirement of mitigating the risks and challenges which are
affecting the operational activities such as improving work potential of employees, bringing
proper training and development, improving working condition, use of technically improved
machinery, equipment and gadgets to reflect the quality in the activities performed. Along with
this, there must be requirement of developing better relationship and contact with the external
organisation which would positively help Sasol in meeting the targeted aims.
2. Taking a product in account which have been sold by South-east Asian and West African B2B
consumers
Sasol have been engaged in various business to business operations as per supplying some
oil and gas products. However, it is mainly dealt in producing the liquid fuels, electricity and
chemicals on which it operates across 33 countries. Hovered, in n relation with understating the
product supply chain of Sasol there have been consideration of the Liquid Fuel and its
operational process by the company (Lähtinen and et.al., 2016). Therefore, the firm has been
dealing with its logistic for liquid fuel with several major stakeholders. It includes Industrial
development corporation of South Africa limited, Allan Gray Investment Counsel, Coronation
Fund Managers and Investec Asset Management.
Product supply chain including economic and environmental performance
As per analysing the supply chain and performance of the organisation on which it can be
said that there are various goals and principle by Sasol which have helped them in governing the
operational activities. It includes secure supply for Sasol while minimising the risks in the
market, delivering goods and services at the preferable quality and quantity among the market as
well delivering products among the consumers as per their desired requirements (Raut and et.al.,
2018). Thus, these are the operational aspects and the product supply chain management of Sasol
which have been reflecting the adequate gains and operational control over management of
operations to retain the market share as well as bring the better gains in economy and
environmental sustainability. Therefore, facilitating the liquid fuel which have been based on
considering the various chemicals to be used in order to make the adequate ascertainment on the
operational aspects.
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3. Comparing the services related with logistics and operations management implications for
delivering products in market
There have been various products and services which in turn would be adequate and
effective in delivering the quality services in the market. However, in relation with such
ascertainment on which it can be said that, there have been various differences in terms of
logistic and operations for regions South-east Asia and in African markets.
South-east Asia region operations of Sasol:
There have been huge differences in the operational aspects of Sasol on South-east Asian
region. Thus, on which there have been variations in the supply chain, logistic management as
well as operational control of the organisation. Therefore, the business in international integrated
with the energy and chemical production which would require them to have the technically
qualified employees to build the best operational environment at the work (Stephenson and
Agnew, 2016). Moreover, there has been use of high value product stream, chemical, liquid fuel
and low carbon electricity. Therefore, the products have been manufactures in South Africa
which has been delivered in South-east Asia region. It covers various operational area or regions
in South-east Asia on which countries such as Bangladesh, Bhutan, DPR Korea, India, Maldives,
Indonesia, Myanmar, Nepal, Sri Lanka, Thailand and Timor-Leste.
West African operations of Sasol:
It is the main production plant of the organisation where they have various activities that
bring logistic supplied to the other nations. It includes Fuel Products depot, in Sasolburg it
consists of energy technology labs and fuels blending & logistic facility. Similarly, it deals in
cape town on which Sasol fuels Applications Centre (SFAC). however, in Secunda plant of Sasol
on which there have the coal have been received from the five mines in Mpumalanga. It has been
received after being crushed, coal is being blended to obtain and even quality distribution. There
have been effective generation of electricity by both steam and gas which have bene used of
gasify the coal at a temperature of 1300 centigrade (OPERATIONS / LOCATIONS, 2018).
Therefore, on which there have been generation of effective amount of electricity and fuel
products.
Therefore, in accordance with the operational aspect of the business in the both eth region
where Africa is comparatively higher in costs where Asia is better in revenue generation it is
basically due to exports are charging less fess and taxes which in turn would be effective for the
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firm in retaining the adequate success (Ahmad and et.al., 2016). On the basis of such difference
where Asia and many other regions are being capable for the bringing the adequate revenue to
Sasol which in turn will be effective for the firm in making proper amount of production which
enables them in meeting the market requirement art the right time. Moreover, this operational
aspect will be adequate for the business in terms of retaining the adequate amount of profits as
well as creating the brand value in the market.
4. Identification of human behavioural challenges facing their staffs
As per the globalised operational aspects, it has been considered by the professionals in
the organisation on which various activities which affects the human behaviour in the industry.
Thus, there are more than 30000 employees which are being serving services in Sasol from 33
countries. Therefore, there have been comparatively higher cultural, language, traditional
diversity which affects the operational process (Raut, Narkhede and Gardas, 2017). Thus, in each
region there have been requirement of effective training and development program which would
enable the professionals in analysing the operational perspective and making efforts to retaining
the targeted aim of business.
Moreover, there have been various operational aspects which are required to be considered
by the organization in order to meet the operational excellence in all region for Sasol. However,
bringing the effective information and care regarding operational control and managing the
human behaviours in the organization (Li, 2016). In accordance with the operational tactics
where it can be said that there are various aspects which would lead the firm in retaining higher
success on global segmentation such as:
Decision making: In accordance with the operational aspects there have been various
challenges which has been faced by the organization in order to meet the challenges for securing
the best performance motives. However, there have been various operational aspects which
would lead the firm in making qualitative operational determinations. Along with this, decision
taken by a leader in the organization in order to arrange the workforce for cokmpleting the
specific operations on which there have been consideration of various activities which would
lead it to make better operational ascertainment (Gardas, Raut and Narkhede, 2018). The poor
decision making would lead the firm in improper operational performance that has been
performed by the organization as per not performing better activities for business operations.
Moreopevre, it affects the human behaviours which is ultimately affect the productivity of the
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organization. Professionals at Sasol needed to be consider the effective operational examination
which in turn would be adequate in making better operational ascertainment.
Attention and Multitasking: There are various kinds of human resources which are
operating in an industry. Thus, on which it is the essential duty of the human resources manage
in assigning the duties to the right person at the right time as per mitigating the targeted aims at
the right time. There will be various department and operational requirement in the oil and gas
industry on which assigning the duties and responsibilities to the people which are operating the
activities in the organization that would be effective for the firm in leading the targeted aims and
objectives (Lähtinen and et.al., 2016). Recruitment of the talents, qualified and skilled employees
which would become able to perform the multiple operations in the organization. Along with
this, it can be said that, there must be proper training and development program awarded to the
professionals on which they would analyses the marketable operations and make better
ascertainment of operations.
Integrative Architectures for modeling individual:
There have been differences in each individual in relation with their learning, understanding
managing the operations as well as performing the multiple tasks at the right time. There have
been various differences which are mainly based on demographic features, abilities and
preferences (Raut and et.al., 2018). Similarly, in relation with analyzing the individual
perspective where there is need to make effective decisions which would lead the firm in
formulating a strategic decision.
It can be improved through implicating the tactics and methods such as key performance
indicators, milestones for operations, benchmarking as well as balance scorecard operations.
Thus, it will be indicative and helpful for the professionals in terms of retaining the best quality
services from the employees as per achieving small targets (Stephenson and Agnew, 2016).
Therefore, this approach will be helpful to the firm in bringing them the adequate stability in the
performance and management of operations for raising the qualitative success.
Similarly, it requires that the HR manager must make plans for creating various roles and
responsibilities for the people such as defining the time schedule, duties, pay-offs etc. which
would result in managing their performance and leading the company to retain the best market
share (Ahmad and et.al., 2016). Moreover, in the oil and gas industry where there have been
various operations which are required to be considered by the busies in terms of meeting the
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qualitative gains at the right time. There are various department such as supply material, refinery
of oil and gas, production process plant as well as various delivering units (Raut, Narkhede and
Gardas, 2017). Thus, there will be requirement of multitasking, operating and talent employees
who would undertake the operations and make corrective action which organization in achieving
success.
CONCLUSION
On the basis of above report, it can be said that, Sasol have been operating in Oil and Gas
operation throughout Africa and various other regions including South-east Asia. however, in
relation with this, on which it can be said that, there are various operational practices which
affects the logistic and operational management of the organisation.
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REFERENCES
Books and Journals
Ahmad, W. N. K. W. and et.al., 2016. Commitment to and preparedness for sustainable supply
chain management in the oil and gas industry. Journal of environmental
management. 180. pp.202-213.
Gardas, B. B., Raut, R. D. and Narkhede, B., 2018. Reducing the exploration and production of
oil: Reverse logistics in the automobile service sector. Sustainable Production and
Consumption. 16. pp.141-153.
Lähtinen, K. and et.al., 2016. Biodiversity and ecosystem services in supply chain management
in the global forest industry. Ecosystem Services. 21. pp.130-140.
Li, D., 2016. Perspective for smart factory in petrochemical industry. Computers & Chemical
Engineering. 91. pp.136-148.
Raut, R. and et.al., 2018. An ISM approach for the barrier analysis in implementing sustainable
practices: The Indian oil and gas sector. Benchmarking: An International Journal. 25(4).
pp.1245-1271.
Raut, R. D., Narkhede, B. and Gardas, B. B., 2017. To identify the critical success factors of
sustainable supply chain management practices in the context of oil and gas industries:
ISM approach. Renewable and Sustainable Energy Reviews. 68. pp.33-47.
Stephenson, S. R. and Agnew, J. A., 2016. The work of networks: Embedding firms, transport,
and the state in the Russian Arctic oil and gas sector. Environment and Planning A:
Economy and Space,.48(3). pp.558-576.
Online
Key Operational Excellence Challenges Facing the Oil and Gas Industry. 2018. [Online].
Available through :< https://medium.com/business-process-management-software-
comparisons/7-key-operational-excellence-challenges-facing-the-oil-and-gas-industry-
775fec5009f5 >.
OPERATIONS / LOCATIONS. 2018. [Online]. Available through :<
https://www.sasol.com/about-sasol/regional-operating-hubs/southern-africa-operations/
secunda-synfuels-operations >.
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