A critical analysis of the implications of agility in logistics and supply chain management to gain competitive advantage in the oil and gas industry.

Abstract

This research investigation presents a critical analysis of the implications and importance of agility within logistics and supply chain management in the oil and gas industry. The oil and gas industry is one of the worlds largest and is characterised by an extremely competitive and erratic market. Christopher (2016), a prominent author within the field of LSCM, argues the essential use of agility to create a highly responsive, extremely competitive and customer focussed supply chain. Within the current body of literature, inconsistencies and differing arguments are evident around the exact meaning and indeed use of agility in Oil and Gas Supply Chain Management (SCM). This investigation researches the costs and benefits of agility to determine whether operating with agility outweighs any implied difficulties. Competitive drivers for agility are investigated and the key factors for success when operating with agility are examined. The literature lacks specificity when applying agile practices to an industry, it is clear this area will benefit from more research and investigation into the current oil and gas market. This research investigation took the form of a qualitative study to allow for flexibility and depth in exploring personal beliefs and opinions and in turn this facilitated the development of a set of emergent themes critical to these areas of investigation. The objectives were achieved through seven face to face interviews with industry specialists in a function of the supply chain within a range of oil and gas organisations. After coding and data analysis, the reduced primary data resulted in common themes which were critically analysed to answer the research questions. The research has found that agility is present in oil and gas industry supply chains even with a contrasting view in the literature. With clear opinions from the interviewees, the advantages of agility outweigh the disadvantages which cohere with the literature. Agility is considered one of the main functions for gaining competitive advantage in this highly competitive market. It was discovered that each organisation is unique, with their own views on how to lead in a competitive market. Agility is always considered and has many positive implications in supply chain management in the oil and gas industry.