The impact of logistics operations on organizational performance in the oil industry: a case study of eni Ghana exploration and production ltd

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Logistics plays a significant role in the profitability of an organization. A vast variety of previous studies have been applied extensively in the supply chain area to examine how logistics as a firm resource can affect a firm’s performance. Most of these studies focused on capabilities that are well-recognized and supply chain imperatives. Hence, the study aimed at evaluating the logistics operations of Eni Ghana exploration and production limited. Based on the aim, three objectives were set which were to evaluate the logistics operations practices in place at Eni Ghana exploration and production limited, to examine the logistics operation challenges faced by Eni Ghana exploration and production limited and to evaluate the impact of logistics operations on organizational performance in Eni Ghana exploration and production limited. A structured questionnaire was designed and distributed to 69 Eni Ghana exploration and production limited Takoradi logistics. A total of 66 were retrieved and analysed using both descriptive and inferential statistics namely mean scores, standard deviation, one-sample t-test and multiple regression analysis. The findings of the study were that Eni Ghana adequately implemented the logistics operations practices. This was mostly in the form of comparing incoming shipments with requirements of the purchase order, conducting a needs assessment of consumers and inspecting all purchased products. Additionally, it was shown that the implementation of logistics operations in eni faced numerous challenges with the critical ones being the hidden cost associated with logistics operations, resistance to change and information exchange barrier. Finally, the study showed that logistics operations practices have a significant impact on organizational performance. Based on the outcome of the study, it was recommended that logistics-related firms endeavour to improve the effectiveness of their logistics operations through training to boost their organizational performance. Also, management must invest in the use of ict to facilitate information sharing in an effective and efficient manner.
A thesis submitted to the department of supply chain and information systems, Kwame Nkrumah university of science and technology, Kumasi, in partial fulfilment of the requirements for the award of a degree of master of science in logistics and supply chain management