CHALLENGES IN SUPPLY CHAIN MANAGEMENT OF PETROLEUM PRODUCTS IN MALAWI (A CASE STUDY OF OIL MARKETING COMPANIES IN BLANTYRE)

The complexities in oil marketing companies supply chains impose enormous challenges to the SCM. SCM in the oil marketing companies in Blantyre was studied in a qualitative and quantitative survey that covered 5 oil marketing companies in Blantyre, with the purposes of identifying the challenges facing the SCM in oil marketing companies and determining the extent to which the oil marketing companies in Blantyre are adopting best practices to manage challenges in their supply chain. The findings show that challenges facing supply chain management in the oil marketing companies in Blantyre occur in one or more of the supply chains components; transportation, storage facilities, supplier problems and fuel losses.
In an effort to manage their supply chain and reduce costs, oil marketing companies are outsourcing their logistics functions to third-party logistics companies to managing their supply chains. Oil companies also engage in E-procurement, close partnership with suppliers, close partnership with consumers and the use of external consultants.
The researcher recommends that there is need for oil marketing companies in Blantyre to adapt to the changing of consumer preferences and market dynamics by diversifying into electric vehicle related products and services. The study also recommends that oil companies should improve their storage capacities to meet customer demands. They should also partner with NOCMA to receive their fuels by rail from Mozambique thereby reducing their road transportation costs.
They also need to develop customer relationship management, supplier relationship management and engage in closer cooperation with other companies, government and regional players. Further, oil marketing companies in Blantyre need to invest in IT systems.

SCM in the oil marketing companies in Blantyre was studied in a qualitative and quantitative survey that covered 5 oil marketing companies in Blantyre, with the purposes of identifying the challenges facing the SCM in oil marketing companies and determining the extent to which the oil marketing companies in Blantyre are adopting best practices to manage challenges in their supply chain. The findings show that challenges facing supply chain management in the oil marketing companies in Blantyre occur in one or more of the supply chains components; transportation, storage facilities, supplier problems and fuel losses. In an effort to manage their supply chain and reduce costs, oil marketing companies are outsourcing their logistics functions to third-party logistics companies to managing their supply chains. The researcher recommends that there is need for oil marketing companies in Blantyre to adapt to the changing of consumer preferences and market dynamics by diversifying into electric vehicle related products and services.

The study covered 5 oil marketing companies in Blantyre due to limited time and resources. Random sampling technique was used to select number of OMC’s.

District: Blantyre

Coordinates: -15.6817, 34.92535