Issues and challenges in the Supply chain management of Pakistan Refinery Limited

Abstract

Refinery plays a very important role for the economics and development of country. Supply chain of refinery is different from that of other companies because of regulated prices. Supply chain of refinery comprise of purchase of crude oil, processing of crude oil and supply of petroleum products to oil marketing companies. Planning for the purchase of crude oil is being done annually. Economics and scheduling section determine demand forecasting and perform liaison with government agencies for the purchase of crude oil through international crude suppliers companies. Transportation of crude oil takes place through vessels. LP model is used for the evaluation of crude oil. Country petroleum product demand is projected to OCAC (oil company advisory committee) by the oil marketing companies on monthly basis. Customer’s complaints are reviewed at OCAC level and also in product review meeting and corrective action is being taken. Commercial and supply issues are resolved by liaison with government and regulatory bodies. Product specifications are determined by PSI standards. Product supply schedules and pumping of product to OMC(s) is performed as per demand.