Prepare 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.

Case questions:

1) Prepare an economic feasibility analysis of the shared resource concept as proposed by CLI? In the analysis:

a)Compare the current boat route costs for AOC, PR, and GEI and the new route costs if the 3PL provides the delivery services.

b)What are the savings if the three shore bases are consolidated into one?

c)What are the projected total logistics cost savings?

2)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?