Out sourcing in Logistics for Competitive Advantage in Oil and gas Industry Islamabad

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.