Jay Carlson
March 2, 2014
International Supply Chain Management
Ukraine Assignment
Shell has potential to make a lot of money in Ukraine because of Ukraine is thought out to be one of one of the best bets in Europe of having shale and tight gas. It is controversial not only because its potentially harmful environmental effects but because of Ukraine’s uncertain stability. As Shell’s supply chain manager, I need to look into the stability of the country, and the various infrastructure of Ukraine. Shell’s huge business has the potential to create tons of jobs for Ukrainians and spark their economy but there are many supply chain management decisions that will need to be explored in depth to avoid risks. If all pans out well, Shell will be able to upgrade Ukraine’s energy infrastructure and will reduce the amount of gas imported from Russia. This will decrease gas prices and will boost Ukraine’s economy. Because of Ukraine’s lack of stability, I would focus on actively exporting oil to surrounding countries and help becoming partners with surrounding countries. Hopefully, this will encourage surrounding countries to become partners and will even intervene in Ukraine if things get too bad. But to successfully export, I must make sure Shell has trusting relationships with those in other countries. I would recommend starting a trusting relationship with an export trading company that will help Shell’s trading operation operate smoothly. The export management corporation located In Ukraine must focus on researching and searching for partners that are trustworthy agents and have a good infrastructure, especially in communication. I would want there to be a good relationship between the Ukraine in Shell and all surrounding partners. In the long run, this would create jobs in Ukraine and help its economy. To have a successful operation in Ukraine, I would need to look at the various infrastructures in the country itself. The different types of infrastructure would include transportation, communication, utilities, and legal and regulatory infrastructure.
To run a success operation, the infrastructure in Ukraine needs to be intact. The main means of transportation the gas would be through railways. To make sure these are safe I would recommend hiring experts to observe and test the railways. Any accidents on these railways would result in devastating losses. Another important part of