Analysis of Supply Chain Sustainability Drivers in the Oil and Gas Industry under Covid-19 Pandemic

Abstract

The supply chain of many industries, including Oil and Gas, was significantly affected by the disruption caused by the Covid pandemic. This, in turn, had a knock-on effect on other industries around the globe. Sustaining the impact of the disruption posed a major challenge for the industry. This study contributes to the existing literature by identifying and analyzing the most significant drivers that affected the sustainability of the Oil and Gas supply chain during the Covid pandemic. Fifteen drivers were identified based on an extensive literature review and a survey conducted with experts working in the Oil and Gas industry. Multi-criteria decision-making methodologies were used to analyze these drivers. The analysis from the fuzzy analytical hierarchy process found that the most important drivers for the sustainability of the Oil and gas supply chain during the pandemic were “Risk management capacity”, “Government regulation” and “Health and safety of employees”. On the other hand, the driver “Community Pressure” was found to be of the least importance. Furthermore, the study integrated the results of the fuzzy analytical hierarchy process with the fuzzy technique for order of preference by similarity to ideal solution to calculate the supply chain sustainability index. A case example was demonstrated to rank the industries based on such calculations. This study can support the governmental institutions in benchmarking the Oil and Gas industry based on its sustainability index. Additionally, the outcomes of the study will help industrial decision makers prioritize the drivers the company should focus and devise strategies based on the priority to improve the sustainability of their supply chain during severe disruption. This will be crucial as the World health organization has cautioned that the world may encounter another pandemic in the near future.

Keywords

Supply chain sustainability drivers / Oil and gas supply chain / Fuzzy analytical hierarchy process / Fuzzy technique for order of preference by similarity to ideal solution / Covid-19

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