Supply chain stands to be at the crux of all operations. Without this, our demands would be at a standstill. Be it, any industry – apparel, manufacturing, energy & commodities. Bearing the effects of supply disruption from COVID in 2021 to the disruption we see today due to geopolitical tensions, Roc Consultancy takes a dive into how our Oil & Gas industry uses strategic approach to tackle disruption.
Diversify Supply Sources.
- Geographic Diversification: Avoiding overreliance on suppliers in politically unstable regions. For instance, Russia-Ukraine affected zones or, Middle East chokepoints.
- Non-OPEC+ alternatives: Multiple oil operators and contractors are now building relations in countries like, Brazil, to offset potential cuts. A Testament of the term, ‘the show must go on.’
- Multi-sourcing: In order to reduce vulnerability from a single point of failure
Enhance Inventory & Logistics Flexibility
- Stockpiling: Maintaining buffer stocks of critical materials, especially in anticipation of OPEC+ production changes. This does come with its storage difficulties, however, a key strategy to hold.
- Flexible logistics contracts: Using 3PL/4PL providers with rerouting capabilities across sea, land, and air modes.
- Dynamic routing systems: Leveraging AI/tech to quickly adjust transport paths in response to geopolitical shifts (e.g., Red Sea risks, Strait of Hormuz tensions). We now have the likes of Kpler who have been tracking the routes meticulously, globally.
Invest in Technology & Visibility
- Supply chain Intelligence: Real-time dashboards to track shipments, disruptions, and risk indicators. Once again, Kpler comes to play, enabling companies to optimize their supply chain & monitor shipments.
Align with Government & Industry Alliances
- Government liaisons: Tapping into national resources or trade bodies for guidance and crisis support.
- Energy transition alignment: Exploring renewables, LNG, and hybrid sourcing models to reduce long-term reliance on OPEC+ oil.
Mitigating supply chain risk in this climate isn’t just operational—it’s strategic.
The disruptions brought by COVID-19 created new pathways and alternatives.
In contrast, the disruptions of 2025 are actively shaping a more resilient landscape. What’s striking is the market’s continued and unwavering ability to adapt in the face of ongoing volatility.
