Strategic Global Logistics Management for Sourcing Road Oil in the U.S.

Abstract

The demand for asphalt and road oil heavily leverages local supply because the product is a hot binder of aggregates that form the final mix needed to pave roads. This paper discusses the supply chain characteristics of crude oil feedstock by considering the overall logistics of sourcing heavy crude oil domestically, or importing it from international trading partners. Heavy crude oil is a source of asphalt and road oil production. The study examines critical global and domestic logistics factors such as customs, regulations, security, environmental compliance, and natural events that will affect costs, schedules, and risks. The study provides a framework for decision-making in sourcing the feedstock. The study helps global logisticians and transportation managers improve strategic design and planning towards efficient sourcing.