Coastal Logistics, Inc.

Coastal Logistics, Inc.:  Establishing Third Party Logistics Services

A report for CLI documenting the economic opportunities associated with establishing third party logistics services in the Gulf of Mexico.  Take the perspective of Joe Ross as he prepares a proposal to take over logistics operations for the three oil firms.  Joe provided an Excel modeling tool to help analyze the current and proposed delivery routes.   Address the questions below in your analysis.  Everything you need to analyze the problem is contained in the case and spreadsheet file.  

Case questions:

1. an economic feasibility analysis of the shared resource concept as proposed by CLI?   In the analysis:
2. Compare the current boat route costs for AOC, PR, and GEI and the new route costs if the 3PL provides the delivery services.
3. What are the savings if the three shore bases are consolidated into one?
4. What are the projected total logistics cost savings? 
5. Is it economically feasible for CLI to establish logistics services in the Gulf of Mexico to supply the platform operators?  Why or why not?  What are the major risk factors?

Assignment submission guidelines: Present your analysis in a power point presentation.

1. Slide 2:  Plot and label the current routes as detailed and Also highlight each route on the case map using a different color for each firm and line pattern for each route by the firm.
2. Slide 3 and 4: Assume CLI serves all the platforms as part of an integrated system. Propose the best delivery routes you can find and plot them on a separate power point map as Slide 3.  Slide 4 provide the specific details of the 3PL routes (similar to Table 5 in the case).
3. Slide 5:  Compare of the current and 3PL routes highlighting major differences in the number of routes, route costs, number of platforms per route, and any other factors you feel are important.
4. Slide 6:  Analyze the operating costs of the current and proposed integrated shore bases. Identify any cost savings associated with 3PL operations. Summarize these findings in Slide 6.
5. Slide 7: In a table, present the pros and cons of the two alternatives and provide your recommendation for pursuing the 3PL or not.