EFFECT OF SUPPLIER RELATIONSHIP AND INVENTORY MANAGEMENT PRACTICES ON THE SUPPLY CHAIN PERFORMANCE - A STUDY ON PAKISTAN STATE OIL.

Abstract

PURPOSE: Purpose of conducting this research is to find out supply chain practices of Pakistan State Oil (SRM practices and Inventory Management Practices of the) and their impact on overall performance of the supply chain. Different practices are identified by using different data collection tools and then these practices are confirmed by means of applying mathematical tools. METHODOLOGY: Interviews are conducted with managers of different areas of supply chain department; observations are taken by involving in day to day work with officials of PSO. Questionnaire which has 45 questions related to SRM, Inventory management and supply chain performance are filled up by almost every employee of the supply chain department. Internal documents are studied e.g SOP’s, Contracts for getting knowledge about the working of PSO. FINDINGS: PSO supply chain practices gives PSO competitive advantage in the oil sector. PSO have strong supply chain management which ultimately affects positively to whole business .Communications, Contract management, Up to date quality management system. SOP’s, Audits system, location of installations and depots, use of latest software , strong logistics system, coordination with all department are the key practices which are efficiently manage by PSO officials which ensure POL product availability to whole country. IMPLICATIONS The research is sound base for understanding the business of largest OMC of Pakistan. This research can be useful for supply chain student for understanding how oil marketing companies do business in the oil sector. This research can be further done in more detail by extending its scope to whole oil sector of Pakistan.