| Abstract | During the existence and development of all organizations, supply chain is one of the most vital activities. The more developing the society becomes, the more important role supply chain plays. Nowadays, from the viewpoint of the integration and globalization of worldwide economy, and the fierce competition taking place in all industries, supply chain has actually become an acute strategic weapon of every company, which can help to enhancing the competitive ability of enterprises in both domestic and overseas market.
Supply chain management in the petroleum industry contains various challenges, specifically in the logistics area, that are not present in most other industries. These logistical challenges have major influence on the cost of oil and its derivatives. However, opportunities for cost savings in logistics still do exist.
PetroVietnam Oil Corporation was established and developed through the merger and acquisition of several companies in the field of petroleum distributing and trading. Therefore, the management board of PV OIL perceived the biggest challenge of the company is to build strategy to maintain a sustainable and effective distribution system. In order to achieve this target, it is believed that to build up and manage the supply chain coherently throughout the whole system is essential, which helps cost savings in logistics and competitive ability improvement.
By applying the qualitative method to analyze the Vietnam petroleum market, the current distribution system of PV OIL as well as by studying theory of the strategies on distribution, alliances, the weaknesses in the distribution system of PV OIL will be disclosed, reviewed and evaluated to draw out the recommended arrangement of the distribution system in accordance with the business strategy of PV OIL. |