Impact of Logistics Outsourcing Strategy in Oil and Gas Industry in Uganda

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Authors : Abaniwonnda Azeezah Osaro


This task carried out is a review of the article titled ‘Impact of Logistics Outsourcing Strategy in Oil and Gas Industry in Uganda’.

The oil and gas industry globally has logistics cost as a vital component of its total cost that varies with the various level of economic activities, depending on level and nature of their production function. In an effort to achieve overall objective and attain targeted performance level of firms leads to outsourcing as an option for firms. The uniqueness of   logistic is not only that is a cost element that can affect profitability, competitiveness and strategic position of individual firms, but creating obligation for contract with prospective suppliers to maintain continuous production. As a result of contractual and price uncertainties, a major technical issue in outsourcing is risk taking and depending  on the level of risk a firm can take.  The role of the producing segment of the economy; firms, is to allocate scare resources that have alternative uses efficiently but the complexity of modern day businesses has made firms to resort to devising means of optimization through maximization of profit and minimization of cost.

The Ugandan oil and gas industry like any other oil and gas industry is compelled to take decision on outsourcing which depends on certain economic parameters which in turn affect the competiveness,  profitability of the firm as well as sustenance of supply chain

The review will start with a brief summary of the article, followed by a review of related literature after which an insight into the research design and survey results are considered.  Thereafter investigate how effectiveness of the article’s structure in inquiring outsourcing puts an oil firm in strategic position and its accessibility efficiency from readers’ perspective.  The review will further make a critique of the article, evaluating its authority, currency, accuracy, objectivity and coverage. The review finally judged the article’s accessibility and credibility. 


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