Master of Business Administration Executive
Faculty / School
School of Business Studies (SBS)
Year of Award
Dr. Rameez Khalid, Associate Professor, Department of Management
MBA Executive Research Project
This report delves into the identification of supply chain process maturity and its relationship with the supply chain performance of Pakistan's Oil & Gas industry. The study aims to address two fundamental research questions: first, what is the current level of supply chain process maturity within various segments (upstream and downstream) of the Oil & Gas industry in Pakistan. Second, how does supply chain process maturity influence a firm's supply chain performance in this context. In the end, this study aids the industry's efforts to improve its supply chain procedures and maintain its competitiveness in a fastmoving market. This research report offers valuable insights into the supply chain dynamics of the Oil & Gas Industry in Pakistan. It provides industry stakeholders with a comprehensive understanding of current maturity levels, performance factors, and actionable initiatives to enhance supply chain processes and overall performance. To achieve the research objectives, a quantitative approach was employed. The questionnaire was sent to supply chain professionals of different companies operating in the sector. The SCPM3 framework by Oliveira M.P.V. (2009) served as a foundational guide for deriving questions and evaluating supply chain maturity. It was found that the sector has currently matured level III and have entered into level IV. The findings describe oil and gas as a mature sector with well-established and welldefined processes and owners when it comes to production, procurement, operations planning, and distribution. The information system is adequate to support order management, producing planning, and distribution management. Sales, manufacturing, and distribution teams collaborate in the planning, scheduling and order commitment processes. The industry has experienced procurement professionals and the strategic planning team works actively with stakeholders to decide the strategy. However, the industry struggles with accurate demand forecasting due to limited use of advanced statistical methods, and a lack of integration for customer planning data. Sensitivity around data sharing impedes deeper integration efforts. Lack of automatic replenishment also leads to inefficiencies in inventory management especially in the downstream oil marketing companies. Trust issues between suppliers and customers hinder strategic integration. Additionally, there's a lack of strategic sourcing implementation, impacting effective supplier management.
The research highlighted that there is strong correlation of supply chain maturity and supply chain performance. The results indicated a strong positive correlation between the maturity and asset management, customer service/reliability and flexibility/agility. A number of actionable initiatives are presented based on the findings that would help mitigate the challenges being faced by the sector and achieve high maturity. Out of all these initiatives, a couple of them were discussed in detail. The first one discusses how data flow and integration across the supply chain stakeholders should happen so that data visibility can help reduce the distribution network and customer integration issues. The transparency of data points would play a vital role in building confidence between suppliers and customers. The seconds initiative largely talks about strategic sourcing that can help to bring about major improvements in the supplier and customer relationship management. It can be achieved by leveraging on cutting-edge technologies such as Blockchain, IoT (Internet of Things), and AI (Artificial Intelligence). Through innovation and continual development, the objective is to achieve maximum cost effectiveness, improve supplier/customer relationship management, and enhance customer experience.
Farooq, F., Azam, M., & Humayun, S. A. (2023). Supply Chain Process maturity & performance of the Oil & Gas industry of Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/612
Available for download on Thursday, October 31, 2030
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