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The research provides an analytical study on the optimization of petroleum distribution system using ICT approaches. It provides a structural study in the petroleum distribution system and a descriptive analysis of the role of ICT towards optimizing the petroleum distribution system.
Petroleum industry occupy’s strategic and importance in the Nigeria economy accounting for as high as 7890 of gross domestic product and up to go-go of the country total annual revenue and foreign exchange earnings the petroleum industry can be classified by types of actors or by sector. The actors in the Nigerian industry consist of both private and public organization. The public actors are the government agents and functionaries such as the Nigerian national petroleum cooperation (NNPC) and its subsidiaries, the department of petroleum (DPR), the petroleum products pricing regulatory authority among others. The private segment consists of both indigenous and foreign actors.
The indigenous sector consists of private independent markers. As far barn as 1978 the concept of independent petroleum product marketing was introduce with a view to bring indigenous independent marketer to that sector of the industry. EROMOSELE (1997) observe that after almost half a century of oil exploration in Nigeria, the oil industry is earning a nature status in comparation to other industries in the country such that significant progress has been made in terms of oil exploration and sell of crude oil abroad. Unfortunately the domestic management of petroleum resources is fraught with a number of problems. There is occasional product shortage, inefficient product destitution containing home price of petrol. Therefore this research aims at investigating of problem distribution system using ICT.
1.1 BACKGROUND OF THE STUDY
Distribution refers to moving and storing a product from the supplier doorstep to the customer doorstep (S. Chopra 2002). Each organization has set their goals at different phases according to their own mission and vision. For instance, achieving the higher responsiveness with minimum lead time becomes the target of one party whereas others want to minimize their logistics cost.
Distribution system of petroleum product in Nigeria is found to be inefficient and insignificant. In any establish organization decision about how to distribute product and services to ultimate consumer are among the most important decision confronting management because distribution decision must be made in terms of various and sometimes divergent objectives and strategies. Petroleum product distribution is therefore concern with the movement of refined petroleum from the refinery to the final consumer across various location of delivery in the country. In the Nigeria situation pipelines and product marketing company (PPMC) responsible for the whole lace supply, distribution and marketing of petroleum product in Nigeria. Petroleum distribution is a complex task that involves transporting and storing across the country. This process is done by various players including the major marketer that transport product from the refinery to their banded stations, independent distributors that transport product from depots to their services station. According to WOTHINGHAM (2004) the distribution segment of the petroleum values change holds the most promised for domestic initiative. The effectiveness of the distribution is therefore significant for the economic development process. Hence he need for a research of this nature which is aimed at investigating the optimization of problem distribution system using ICT.
1.2 STATEMENT OF PROBLEM.
The Petroleum industry occupy a strategic important in the Nigeria economic accounting for as high as 7890 of GOP and 909 of the country total annual revenue and foreign exchange earnings. However the distribution of petroleum product to the wider market is besiege with gross inefficiency and ineffectiveness has been witness in the occasional shortage of petroleum product and the contending pump of petroleum. In view of the significant of the sector, it is necessary that measure be adopted to optimize the distribution of petroleum product. Therefore the problem confronting this research is to investigate the optimization of petroleum distribution using ICT.
1.3 RESEARCH QUESTION
1. What is petroleum distribution system?
2. What is ICT and it significant?
3. What constitute optimization of petroleum distribution system using ICT?
1.4 OBJECTIVE OF THE STUDY
1. To provide an analytical study on the petroleum distribution system
2. To appraise ICT and the significant of ICT
3. To determine the role Of ICT in the optimization of petroleum distribution system
1.4 OBJECTIVE OF THE STUDY
1. To find out whether ICT the optimization of petroleum distribution.
2. To determine the role of I.C.T in the optimization of petroleum distribution system.
1.5 SIGNIFICANT OF THE STUDY
The study share provide a structural analysis of the petroleum distribution system with a view to determine deficiency and proper solution
2. It shall provide a detail study framework of ICT and it significant.
3. The study shall portray the various ways ICT can be used to optimize petroleum distribution system.
4. It shall constitute a source of information of relevant static holders in the petroleum and ICT sector.
STATEMENT OF HYPOTHESIS
1. Ho petroleum distribution system is not significant
Hi petroleum distribution system is significant
2. Ho petroleum distribution system is not optimized
Hi petroleum distribution system is optimized.
3. Ho ICT has no significant impact in petroleum distribution system.
Hi ICT has significant impact in petroleum distribution system.
SCOPE OF THE STUDY
The study is focused on the optimization of the petroleum distribution system using ICT, examining the role of ICT in petroleum distribution in Nigeria and the method of distribution using ICT to improve.
DEFINITION OF TERMS
PETROLEUM DEFINITION: petroleum product is concern with the movement of refined petroleum from the refinery to the final consumer across various location of delivery in the country. (Adepoju. A. 2012).
DISTRIBUTION: these is the process of discrimination of oil and gas product from one company to another were the need and be put to use in Nigeria and the world at large.
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