Supply Chain Management and Logistical Considerations in Distributing Crude Oil from Nigeria to China
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The evolution of supply chain management has made significant and continuous contributions to logistical processes. This is highly relevant to crude oil logistics in Nigeria, because both indigenous and multinational oil companies who distribute crude oil from Nigerian ports are yet to adopt an integrated export logistics operation. Besides, the study explores the philosophy of supply chain management applying theoretic frameworks of supply chain process management, demand variability, and vertical integration to encourage integrated export logistics for the distribution of crude oil from Nigeria to China. In addition, the research objectives are: to identify the components of crude oil exports; to review the principles of integrated supply chain management; to analyse crude oil demand in China; to evaluate the efficiency of oil distribution, and to propose strategies that will raise the efficiency of crude oil exports to China from Nigeria. A conceptual model was developed to identify relevant issues that guide the synergy of China’s requirement for energy security and Nigeria’s crude oil supply capability. Also, both a Delphi survey and an archival research method’s were adopted to elucidate on the characteristics of the research population, the shipment frequencies between the two countries, and the sources of competing crude oil exports to China. Measures of central tendency from respondent feedback and non-parametric tests support the study’s findings. Furthermore, recommendations for strategic, operational, and tactical organisation of resources were identified to raise integrated crude oil export efficiency from Nigeria to China directed by the theoretic framework. Moreover, their implications for sustainable logistics practice in the short, medium, and long-term are considered. Finally, it was found that adopting vertical integration in a crude oil supply chain will ensure responsiveness to support export efficiency, and enhance the geographic characteristics of Nigeria for increased export shipments to China.