Studies of Inventory Management, Warehousing, and Logistics of OGDCL Islamabad Head Office

Abstract

Oil and Gas Development Company Limited is exploration and Production Company of Pakistan. Since its incorporation, OGDCL has proved itself a leading E&P Company in the country. The major departments of OGDCL are HR Department, Finance Department, Production and Exploration department and supply Chain Management department. Each of the above-mentioned department has its own role; however, the ultimate goal of all the departments to take necessary efforts to achieve the common goal of the organization i.e. to be a leading company in fields of exploration and production in the region. The focus of our project is based on the Supply Chain Management Department of Oil and Gas Development Company Limited (OGDCL). Supply Chain Management is an important and large department. The department is headed by Executive Director (Services) and has two main wings i.e. Procurement Department headed by General Manager (SCM) and Materials Management Department headed by General Manager (Materials). Our primary focus was on of this report is to analyze the working of Procurement, Inventory Management, Warehousing and Logistics Management of OGDCL. To complete this project we discussed various issues related to Supply Chain & Materials Management with respective representatives. During this activity we observed various problems in their operation like increase the inventory level; obsolesce of inventory, a large number of line items with large number of suppliers etc. In order to address these problems, we have given some suggestions & recommendations which were very much appreciated. These suggestions & recommendations are further discussed in detail in Chapter # 5. We finally concluded that working of Procurement and Materials Management can be further improved and the weak areas could be rectified if the influence of Govt. of Pakistan and other Govt. regularity bodies like Public Procurement Regularity Authority (PPRA) is kept limited. We have also identified some problem in their operation and have also given recommendations which will be helpful to overcome their issues & problems.