Supply Chain Management Practices in Malaysia Oil and Gas Industry: A Case Study of Murphy Sarawak Oil Company Ltd.

The main objective of this research is to identify and determine the level of SCM practices, and barriers or impediments to implement these practices in oil and gas industry particularly the case company, Murphy Sarawak Oil Company Ltd.. In this study, nine dimensions that being used are: strategic supplier partnership, customer relations practices, information sharing, information quality, internal lean practices, postponement, information technology, training and internal operation. Previous literatures related to SCM and its practices are reviewed to support the present study. Specifically, the case company was analysed mainly through semi-structured interviews with some of the practitioners in each departments who is actively involve in the process of SCM activities. Set of questionnaires have also been sent via email to the case company, and yielded 10 responses. The study found that among nine practices proposed, seven are identify to be implemented by the company. Such findings are necessary and lay the foundation for the eventual development of SCM practices. Among the dimensions which are sought to be implement by the company are strategic supplier partnership, customer relations practices, information sharing, information quality, information technology, training and also internal operation. Hence, the finding reveals that the other two practices which are not applicable in oil and gas industry include internal lean practices and postponement which are more relevant to be implemented in manufacturing sector. This initial findings offer some insights on the SCM practices in the case company. The result of this study also contributed to knowledge as it discovered additional dimension of the practices in the industry. Directions and recommendations are discussed on how oil and gas company can realize the benefits of SCM and to implement it effectively.