Abstract:
The out sourcing is considered to be an effective method to increase the performance of the
organization but this particular study focuses on the out sourcing of logistics (Independent
variable) for the competitive advantage (Dependent variable) for the oil and gas industry in
Islamabad. In addition to it the competitive advantage is divided further in to three dimensions
that are cost leadership, lead time and customer satisfaction. The main emphasis of the study is
on the out sourcing in the logistics of oil marketing companies that can make them achieve the
competitive advantage over the rivals in the oil and gas industry. The research is conducted on
the oil and gas industry based in Rawalpindi and Islamabad. The research has been conducted
considering 10 oil marketing companies based in Rawalpindi and Islamabad. The theoretical
framework of this study contains three hypotheses. H1: Out sourcing in logistics for cost
leadership, H2: Out sourcing of logistics for shortening lead time, H3: Out sourcing in logistics
for customer satisfaction. The results of the study were taken after applying SPSS (7.0).
According to which the H1 is accepted and H2 and H3 are rejected. Hence we come up to the
conclusion that the out sourcing within the logistics not only creates the competitive advantage
for the organization but is also a clear indicator of increase in the performance and waste
elimination within the organization.
