MBA PROJECT REPORT

ANALYSIS OF PIPELINE MODE OF TRANSPORTATION IN SNGPL

Submitted by:

Aamir Hayat Wazir 01-122132-009

Imranullah 01-222132-003

Muhammad Raheeb 01-122132-030

MAY, 2015

Department of Management Sciences

BAHRIA UNIVERSITY ISLAMABAD, PAKISTAN

 ACKNOWLEDGMENTS

First of all, we would like to thank Allah, the Almighty, who helped us, give us strength
and made us capable to complete this project.

We would like to thank the individuals who made it possible for us to complete this thesis.
We am thankful to our family for being patient with us and taking care of all our day-to-day needs
at home and keeping us away from family responsibilities so that we could concentrate on our
project.

We are extremely grateful to our supervisor Miss.Aqsa aamir, for her guidance, patience,
and support throughout this project process. Sincere gratitude is extended for providing
constructive and timely feedback and for encouraging us to think “outside the box”. We also want
to thank her for initiating us in the field of supply chain management. She has always been
generous to share her wide knowledge on supply chain management and this project. We are highly
thankful for her kind attention and crucial support through out this project. We were very
privileged to have had the opportunity to work with such competent and helpful supervisor.

Also, special thanks to Mr. Irfan khan for helping me during the completion of this thesis.

I am extremely thankful to my university, Bahria university Islamabad campus for

providing us all the facilities related to my project work and for providing a learning environment.
Finally, as in all academic pursuits, we are grateful to the project participants who took part in our
survey. Without the data provided by the respondents, this project would not have been possible.
 Abstract
Supply chain management is actually accepted as the particular move and administration
associated with methods through the organization for the purpose of retaining this company
businesses profitably. What exactly it implies is really the particular move associated with things
or items by upstream which is by supplier’s providers on the downstream which is for the conclude
purchaser or buyer. Together with that, Source sequence administration will be the administration
associated with upstream and downstream marriage along with providers and buyers to supply
exceptional and various buyer benefit on much less cost for the present sequence all together. It is
with no exaggeration and also outside of your skepticism in which electricity is now the most
major desires on the human being. Inside constant wintertime your petrol shortages because
regular also have enhanced, and also there may be rationing regarding piped petrol. Reliability on
imported fuels features enhanced and is improving the expense of power age group and also
contributing to your state's equilibrium regarding obligations problems. The growing electricity
shortages include created existence hard with regard to Pakistanis throughout the board. The
standard of existence regarding individuals features deteriorated. Economical expansion prices
have been stunted, and also marketplace and also agriculture include endured. Today, over 3, 000
CNG areas are in services throughout 99 metropolitan areas as well as cities, and even more as
compared to 1000 can be installed within the next couple of years. These kinds of areas provided
job to over 50, 000 people throughout Pakistan. Due to intricacy regarding taking care of supply
cycle throughout gas business within a energetic atmosphere and also remembering your
globalization factor, has become more intense as well as required your corporations to choose
pipeline function regarding vehicles vendor to attenuate possibility as well as charge. By using
skills regarding pipeline function regarding vehicles vendor, your corporations can easily handle
your increasing charge as well as reduce the complete possibility confronted. Especially speaking
about Pakistan gas business, a huge chance as well as need to have exists pertaining to pipeline
function regarding vehicles vendor because a huge area wants progress specifically speaking about
procurement, inventory operations, manufacturing facility operations, vehicles operations, details
operations along with logistical characteristics by bettering their own made available solutions to
realize additional enterprise in order to meet your custom made specifications regarding
corporations functioning throughout gas sector.
Table of contents

Chapter No: 1 ................................................................................................................................ 8

1. Introduction: ..................................................................................................................... 8

1.1. Introduction to Supply Chain Management: ................................................................ 8

1.2. Supply Chain Management: ......................................................................................... 9

1.3. Supply Chain Management in SNGPL:........................................................................ 9

1.3.1. Introduction to SUI NORTHERN GAS PIPELINE LIMITED:............................. 10

1.3.2. Vision statement of SNGPL.................................................................................... 10

1.3.3. Mission statement of SNGPL ................................................................................. 11

1.3.4. Courtesy in SNGPL: ............................................................................................... 11

1.3.5. Competence in SNGPL: .......................................................................................... 11

1.3.6. Responsibility in SNGPL:....................................................................................... 11

1.3.7. Integrity in SNGPL: ................................................................................................ 11

1.3.8. Commitment in SNGPL:......................................................................................... 11

CHAPTER NO: 2 ........................................................................................................................ 12

2. Problem definition:......................................................................................................... 12

2.1. Mis-match in demand and supply of natural gas: ....................................................... 12

2.2. Problems in the transportation mode of pipeline in SNGPL: ..................................... 12

2.2.1. Excavation damage: ................................................................................................ 12

2.2.2. Corrosion damage: .................................................................................................. 13

2.3. Objectives of the Study: ............................................................................................. 13

 2.4. Significance of the Study:........................................................................................... 13

2.5. Literature Review: ...................................................................................................... 14

2.6.1. Logistics: ................................................................................................................. 15

2.6.2. Pipeline mode of transportation: ............................................................................. 15

2.6.3. Inventory Management in Pipeline Mode of Transportation Logistics: ................. 17

2.6.4. Traveling Administration in Pipeline Logistics: ..................................................... 18

2.6.5. Stock room Administration in Pipeline Logistics: .................................................. 19

2.6.6. Data administration in Pipeline Logistics: .............................................................. 20

2.6.7. Impact of Outsourcing stock administration: .......................................................... 22

2.6.8. Impact of Outsourcing Traveling administration:................................................... 23

2.6.9. Impact of Outsourcing stock room administration: ................................................ 25

2.6.9. Impact of Outsourcing data administration: ........................................................... 26

2.6.10. Third Party Logistics in Sui Northern Gas Pipeline Limited: ............................. 28

2.6.11. Impact of Outsourcing Traveling in SNGPL: ..................................................... 29

2.6.12. Impact of Outsourcing stock administration in SNGPL: .................................... 30

2.6.13. Impact of Outsourcing data administration in SNGPL: ...................................... 31

2.6.14. Impact of Outsourcing stock room administration in SNGPL: ........................... 32

Chapter No: 3 .............................................................................................................................. 33

3.1. Designed and implementation: ................................................................................... 33

3.2. Independent and Dependent Variables: ...................................................................... 34

Chapter No: 4 Testing Methodology: ........................................................................................ 35

 4.1. Organizations Analyzed for the Project: .................................................................... 35

4.2. Selection of Sample for Project: ................................................................................. 35

4.3. Project’s Population Frame: ....................................................................................... 35

4.4. Questionnaire Face and content validity: ................................................................... 35

4.5. Time Horizon for Project:........................................................................................... 36

4.6. Nature of Project:........................................................................................................ 36

4.7. Project Validity and Reliability: ................................................................................. 36

4.8. Project data collection procedures: ............................................................................. 36

4.9. Project’s Demographics:............................................................................................. 36

Project’s Descriptive Analysis: ............................................................................................. 42

Chapter#5 Action Plan ............................................................................................................... 43

1.1. Outsourcing Logistics To Pipeline mode of Transportation Motivators: ................... 43

1.2. The Discouragements of Outsourcing Logistics to Pipeline mode of transportation: 44

1.3. Project’s Suggestions and Solutions: .......................................................................... 45

Appendices ................................................................................................................................... 46
Table of Figures

Table 1 Independent and Dependent Variables ........................................................................... 34

Table 2: Demographics ................................................................................................................. 37

Table 3: Gender Demographics .................................................................................................... 38

Table 4: Age .................................................................................................................................. 39

Table 5: Qualification ................................................................................................................... 40

Table 6: Work Experience ............................................................................................................ 41

Table 7: Descriptives .................................................................................................................... 42

Chapter No: 1

1. Introduction:

1.1. Introduction to Supply Chain Management:

A standout amongst the most vital and crucial theme and substance in the investigation of
administration of assembling and dispersion system is "SCM'' (supply chain management). The
far reaching press have been loaded with books and articles depicting and clarifying the serious
and emotional changes happening in profitable procedures and authoritative structures starting
from the crucial achievements coming in administration routines, the use of business procedure
inventing systems, the wide spreading of the commercial center, and the blast and emission in data
and correspondence innovations. Already, the creation and appropriation of products/items and
data through the exposed business were examined of lower or auxiliary significance as opposed to
the great deal more genuine techniques of overseeing promoting, deals, and fund. Nowadays, as
organizations discover themselves under consistent stretch and weight to fabricate solid and viable
establishment, give and make superb products, items and administrations, convey them to retailer
instantly, speedier, build process resilience and adaptability keeping in mind the end goal to react
to relentless and extreme moves in commercial center prerequisites, lessen item and working
expenses, and journey for approaches to teach and train their representatives to ace the attempts
and attempt they must bear consistently and manage them productively. The organizations and
associations have been progressively turning to the force and qualities to be found in their store
network accomplices to profit by their aggressive capacities and minimize their shortcomings and
dangers confronted both inside and remotely. Organizations underscore and concentrate on inner
endeavors on inner focal and center skills, inventing inefficient procedures, and putting into service
the degree of excellence administration strategies, they have additionally been searching externally
to their channel affiliations, coordinated effort and cooperations to obtain entrance to sources
which are rare and of extraordinary capacities, abilities, capabilities, physical assets, and client
winning procedure esteem.
1.2. Supply Chain Management:

Comprehend and realize what is fundamentally store network administration, how could it have
been able to it developed and its significance in both administration and assembling fields and
what are the drivers or determinants of inventory network administration? For the most part store
network administration is really thought to be your stream alongside administration connected with
means over the endeavor when considering protecting the business capacities suitably. (Ramesh
klazia 2003). It is really the stream of products or items from upstream that is from supplier's
suppliers towards the downstream that is to the end shopper or client. Notwithstanding it, Supply
chain administration is the supervision joined with upstream and in addition downstream
association utilizing makers and customers to convey remarkable and different buyer worth on less
cost on the offer cycle all in all. (William S.K.W, 2012). The discriminating point in this sentence
is that, it mulls over not just the material stream from the suppliers to the client additionally the
data and monetary streams all through every progression of the production network. Besides
Supply chain administration is characterized as a group with respect to connected furthermore
related offices, commonly furthermore co-operatively working together to control, deal with
furthermore enhance the stream in regards to item furthermore information originating from
suppliers to complete clients. (skengenzo, 2010). Production network administration is a
coordinated action all through the inventory network on the grounds that the gainfulness of every
association will be influenced by the execution of each connection in the chain. The lacking toward
the end of suppliers will specifically influence the assembling office and additionally the end client
or shopper. Each stride and each office in the inventory network through which the products/ item
streams, that are through supplier's end, through assembling or generation division, through
pressing and circulation lastly the wholesalers, are coordinated with one another and all the
divisions must cooperate to fulfill client which is extreme point and reason for each association
and firm.

1.3. Supply Chain Management in SNGPL:

As a result of the expanding request and quickly developing need of hydrocarbons, overseeing
production network particularly in SNGPL is viewed as extremely compound and troublesome
occupation to do. The interest as well as investigation of gas in removed and territories is making
hindrances and troubles for associations to deal with its general store network. A fundamental
issues and difficulties confronted by gas industry is with respect to administration of logistics as
far as increment in expense because of longer separations, increment in lead times, expansion in
investigation and creation expense, increment in labor expense, increment in expense of
overseeing stock and increment in high variability in conveyance times. Because of the extreme
changes in nature which has uplifted logistics expense, gas industry are compelled to keep much
bigger security stock to minimize impacts created by ecological changes so that the stream of
products, the stream of monetary and the stream of data manages all through the production
network.

With a specific end goal to share hazard and diminish general expense, firms working in gas
have outsourced all or some logistical capacities and exercises to outsider logistic administration
suppliers. Impact of certain capacities leads organization to benefit opportunity in increasing
particular mastery through which the organization will have the capacity to coordinate with each
channel all through store network to enhance the execution and proficiency, minimize the danger
confronted, focus all the more on their center capacities, overseeing the burden, going from
altered expense to changing expense which enhance the producing entire inventory network
solid.

1.3.1. Introduction to SUI NORTHERN GAS PIPELINE LIMITED:

This company was found in 1963, later on in 1964 under the companies Act 1913 it was changed
to open constrained organization. According to Companies Ordinance 1984, It was recorded on
the Stock Exchange of the Country.

This organization assumed control all the current Sui Multan System, which has 217 miles of 16
inch and 80 miles of 10 inch distance across pipelines, Pakistan modern Development Corporation
(PIDC), Dhulian Rawalpindi Wah framework, which has 82 miles of 6 inch measurement pipeline,
and Attock Oil Company Limited. This Company started business operations with offering a
normal packages in locale area. There are total number of 67 consumers in Multan and Rawalpindi.

1.3.2. Vision statement of SNGPL

Being the cutting edge incorporated gas provider in your neighborhood seeking to enhance the
standard of lifestyle in our shoppers and attain obtain the most for our stakeholders by providing
a good continuous and the environmental friendly energy assets.
 1.3.3. Mission statement of SNGPL
Providing the product to everyone doorsteps in this selected areas by way of ongoing development
your circle simply by optimally employing technical, individual as well as organizational assets,
guidelines as well as high ethical expectations.

1.3.4. Courtesy in SNGPL:

Providing with courtesy to the customers stake holders and the organization encourages open
communication.

1.3.5. Competence in SNGPL:

Striving towards the effort of competency and continuously developing and improving the skills
of our businesses.

1.3.6. Responsibility in SNGPL:

The firm provide with responsibility individually and as a team to our work in most of the
circumstances we hold our selves responsible.

1.3.7. Integrity in SNGPL:

Integrity is the core value of organization, we believe in honesty and fairness.

1.3.8. Commitment in SNGPL:

The firm believe in commitment to our vision and mission and continuously delivering value to
our customers and stake holders.
CHAPTER NO: 2
2. Problem definition:

2.1. Mis-match in demand and supply of natural gas:

In continuous winter season the gas deficiencies as regular have likewise expanded, and there is
apportioning of channeled gas. Dependence on imported fills has expanded and is expanding the
expense of power era and adding to the nation's equalization of installments issues. The developing
vitality deficiencies have made life troublesome for Pakistanis in all cases. The personal
satisfaction of subjects has weakened. Financial development rates have been hindered, and
industry and horticulture have endured. The Government of Pakistan, perceiving the greatness of
the emergency and its impact on the individuals and the economy, has embraced crisis measures
to address, oversee and decrease the effect of the emergency.

World biggest CNG client is Pakistan, announced in prior 2010. At this moment, more than 3,000
CNG stations are in administration in 99 urban areas and towns, and more than 1000 eventual
introduced in the following two years. These stations gave work to more than 50,000 individuals
in Pakistan. Anyhow, now; by the inordinate utilization of this valuable save in transport made the
force division exceptionally hanging. Characteristic Gas is a noteworthy trait of Pakistan's vitality
blend, presently speaking to 49% of aggregate utilization, fundamentally for the force generation,
private and assembling parts. Oil makes up 31% and about the majority of this is imported. As per
the Ministry of Petroleum and Natural Resources, amid 2007-08 the generation of gas enhanced
from 3837 to 3973 million cubic feet every day recording an increment of 2.6% yet the at the
comparative, the development in use expanded by 4.4% which out situated the development
underway of the gas.

2.2. Problems in the transportation mode of pipeline in SNGPL:

2.2.1. Excavation damage:

It is the harm of pipeline coming about because of contact with. It can happen amid any period of
pipeline movement e.g development, operation or upkeep. It incorporates harm to the outside
covering of pipeline, these disappointments the pipeline in two ways. Harm can come about
when removal gear punctures the mass of the pipeline.
Restricted consumption of pipeline harm brought about to pipeline coatings or scratches made in
the pipeline materials itself.

2.2.2. Corrosion damage:

At the point when there is continuous decrease in thickness of the mass of channel coming about
misfortune in funnel qualities accordingly the channel come about more helpless to harm.
Consumption happens in light of the ecological conditions. At the point when an unprotected
channel is covered in wet soil, electric current actually spills out of the metal funnel which brings
about consumption. Correspondingly inside consumption happens when concoction assault of
the inside surface of the channel formed destructive liquids in pipeline.

2.3. Objectives of the Study:

 Demand and Supply analysis of SNGPL.

 Pipeline mode of distribution and disruption in supply chain of gas.
 Constraints in this mode of transportation.
 And to create bench marking standards.

2.4. Significance of the Study:

As the time passes, the increasing demand of the gas in customers should be satisfied by the
SNGPL through constant supply through its mode of transportation what's more, it specifically
influences the extension of production network systems and therefore investigation of pipeline
method of transportation has taken an in number position or one can say it need to assume greater
part to fulfill suppliers, produces, retailers and clients. With the development of appropriation
system prompts confronting the test of making quick conveyance channels to put their self, one
stage ahead and make more grounded rivalry for new markets. This need puts more weight on
store network chiefs to take care of business effectively and adequately to pick up that game
changer. Remembering this, the motivation behind this examination is to make sense of what can
be the most persuasive or imperative calculates point of view of transportation that influence the
general operations and proficiency of the organization and how we can gain by them to exceed
expectations.
2.5. Literature Review:
This section concentrates on broad talk about supply of gas, outsider logistics need and
significance of analysis of pipeline method of transportation in SNGPL, variables included both
reliant and free , general impact of every autonomous variable on ward variable independent of
gas industry and impact of every free variable on ward variable particularly in gas industry. In
present time, every last organization and association's definitive point is to be immaculate and
remarkable whatever they are doing, that may incorporate assembling a particular item or giving
administrations. As the time passes, more organizations are going towards the universal exchange
and it specifically impacts the extension of store network systems and hence analysis of pipeline
method of transportation (a piece of production network administration) have taken an in number
position or one can say examination of pipeline method of transportation need to assume greater
part to fulfill suppliers, produces, retailers and clients. With the extension of appropriation system
prompts confronting the test of making fast conveyance channels to put the organization and firm
one stage ahead and make more grounded rivalry for new markets. This need puts more weight on
store network supervisors to take care of business productively and viably to pick up that game
changer. Inside of the past couple of years, there's been a major change inside of logistics
administration supplier arrangements. Albeit basic working strengths sooner have been to ease
costs and in addition release capital for you to decision utilizes and this caught capital dependably
be put in and additionally utilized productively to stop the chance charge, this voyaging permits
will have a methodology to upgrade commercial center scope, improve the level of bolster or
upgrade adaptability alongside general adaptability on the radical adjusting particulars including
purchasers. To adapt up to that, collaboration and cooperative energy between the capacities is
presently a considerable measure all the more long haul inside character, also holding and is for
the most part alongside adjustments inside both similarly enterprise and information frameworks.
Remembering that, alternatives are typically specially designed to have the capacity to particular
arrangements and in some cases incorporate things like worth including arrangements, for
example, staying assembling your unit, warehousing, travel, top quality control, stock
administration notwithstanding realities arrangements.
 2.6.1. Logistics:
Going further let’s first understand what in essence logistic is actually? Logistics is actually
science as well as practical execution as well as practical supervision associated with material’s
source. In essence logistics is actually number of valuable actions that are usually recurring
through the entire source chain in order to convert the particular materials that are fresh materials
straight into consumables be the closing merchandise (Clazwertz 2003). It truly is in essence an
integral part of source chain supervision that will options, accessories as well as manages the
particular effective, useful move or activity as well as hard drive associated with merchandise,
supplying associated with merchandise, submission associated with merchandise, giving
products and services as well as associated facts from the position associated with beginning to
the stage associated with ingestion in order to meet up with client specifications.

2.6.2. Pipeline mode of transportation:

Analysis regarding pipeline mode regarding travelling incorporates just about any sort of
externalization regarding logistics activities as well as activities formerly performed as well as
carried out (Armzedz, Miller, & tiffin, 2004). Analysis of pipeline mode of transportation includes
the use of outdoors companies to do travel functions along with pursuits who have typically along
with generally recently been carried out along with accomplished inside an business previously.
Your functions along with pursuits carried out through the manner of travel can easily cover along
with contains the entire travel course of action or perhaps decided on pursuits inside which course
of action. (Dezillion & Thrampachol, 2006). The above definition affords the idea in which
companies and firm keep their own first and true strive and motive of existence which often
concentrates a lot more on the center abilities as an alternative to throwing away their own time
and sources in activities which can be of a smaller amount magnitude. That’s why that they utilize
to outsource those activities to almost any 3rd party logistic service provider as well as any
agreement logistic company, which often whenever they utilize to complete on their own. Right
after finding number of 3rd party logistics company (Mapara & Donald.W, 2006) specifies
pipeline mode of transportation logistics as an association which in turn demonstrates and also
indicates a detailed and also long-term connection in between some sort of buyer in addition to a
support composed of the particular shipment of your respective wide-ranging couple of logistical
would like.
Transport may be referred to as simply by many change companies as an illustration organization
pipeline logistics, sales funnel management, syndication, commercial logistics, logistical
management, element management, physical syndication, swift answer method, offer cycle
management but still offer management. These types of key phrases currently have a thing to keep
if you know this all identifies your own management for the mode regarding goods together with
components through the point regarding commence to the stage regarding exhaustion. 3rd party
logistics or even contract logistics offers created key desire for every single marketplace within
the last few age ranges. It includes numerous these kinds of workouts which often more rapidly
ended up accomplished plus done inside the organization or even because of the organization plus
firm they household. The specific features accomplished because of the alternative party logistics
could possibly include things like your entire logistical method or even determined workouts inside
which often method. Before you go heavy, one should determine what in essence 3rd party logistic
is usually, The actual functions that are make an effort to using get together in outsourcing
techniques as well as controlling selected certain pursuits associated with organization are
generally alternative party providers or maybe logistic providers (LSP). The actual providers may
possibly include things like warehousing, controlling transportation, management associated with
fleets as well as shipments. Not too long ago these types of logistic providers because of the
expanding opposition additionally world wide marketplace serious changes are already hectic in
scattering his or her variety of pursuits, appealing his or her do it yourself in complicated as well
as complicated pursuits as well as offering far better providers to much larger amount of customers
in comparison with earlier (Bezantine, 2002). Whilst (Bruce & Camela, 2013) acquired offered
the key description associated with third- get together logistics seeing that, providers introduced
simply by center individual inside the funnel associated with source chain as well as logistics
funnel which has beneficial as well as vast encounter in supplying as well as undertaking certain
logistic activity for various other organizations by means of contract for certain time period.
Furthermore (Debra, Trinski, Stewart.W, 2014) identifies alternative party logistics to be a
organization or maybe group produce as well as does various many logistical providers for the
customers, operating seeing that exterior individual or maybe 3 rd individual to the client firm,
which is remunerated for that providers your TPL offers offered. Moreover logistics is usually a
component of source chain management which performs a key, critical as well as essential function
in figuring out your proficiency associated with organization as well as organization’s functions.
Freelancing or maybe alternative party logistics in essence ensures that a person outsource many
or maybe several functions of one's organization or maybe firm being done by the alternative party.
The item involves as well as includes logistics capabilities being done by the 3 rd functions that
were as soon as done inside by the group itself (Wrendees, Fernanshal, 2012). Preserving this as
the primary goal a lot more firms 're going for the intercontinental business and it straight results
your expansion, development as well as progress associated with source chain networks and as a
consequence alternative party logistics took a robust placement as well as place or maybe you can
state alternative party logistics must perform even bigger function to meet manufacturers,
produces, retailers as well as customers. Important, critical as well as essential function in a sense
associated with cutting down functioning cost, exploitation as well as by using appropriate details
at the appropriate time period through the appropriate supplier, cutting down risk as well as lead
occasions, suitable inventory management, providing proficiency in logistics as well as successful
transmission across many intermediaries. Forthcoming for the integration associated with logistics
pursuits, the only as well as major difficult task as well as process is usually the lack of qualified
man learning resource.

2.6.3. Inventory Management in Pipeline Mode of Transportation Logistics:

Diving deep into each determinant, one ought to realize what they truly are, what is their
significance and criticalness and why it is vital to consider it in pipeline logistics administration
and outsider logistics. Impending towards the first driver of production network administration
that is stock administration, which is an autonomous variable. Stock administration is particularly
responsible for the capacity of materials. Sensibly survey stock administration as a different
capacity, the analysts clarified it as one of the exercises that syndicate to shape the more extensive
capacity of logistics (Miller, 2002). Every logistical activities are so firmly related that it would
positively be hard to draw a connection between stock administration and how about we say
buying, materials taking care of, transportation and warehousing (Miller, 2002). Pipeline stock
administration is noteworthy and essential to keep up due to the befuddles that happen in the
middle of supply and interest eventually in time. The sole point is to decreased hole regarding
expense of generation and procedure arranging with the contender. Supporting the announcement,
firms and associations are presently focusing on viable and effective use of logistic ideas and
exercises to expand their net revenue (Ramesh, Dudda, 2013). Moreover stocks are by and large
exhibited in the seeking after regular guideline; junk notwithstanding parts, capacity incident,
completed things, upkeep, vehicle repairs notwithstanding working things notwithstanding
pipeline or in-travel supply. (Dolphie, 2002). Remembering this, pipeline stock administration
assumes noteworthy part in a key range in logistics operation and has an impact on the productivity
and adequacy of the general inventory network framework (Dolphie, 2002). As the cycle of
generation and utilization never continue as before, so that is the reason products must be kept
over the vulnerabilities popular and supply. Despite the fact that higher stock levels will influence
what really matters of the association. This is a high hazard and high effect territory, where we
need to keep a harmony between two dubious, basic and critical objectives of lower expense and
more elevated amount of client administrations (Dolphie, 2002). Productive logistics execution
obliges change between the need to lessen general store network stock or make it adjust and lead
times, and opportunity to find monetary atmospheres with respect to degree with logistics interests
like warehousing and transport. This specific conforming gets muddled in view of the instability,
compelling setting changes that scenes ordinary give stores and also impression is major and huge.
Unclearness and also instabilities might maybe move as a consequence of specific components
identified with organizations, making or maybe need capacities. Prior, response to manage distrust
had been to hold stock and in addition answer great commercial center situation. All through not
so distant future, a key point in regards to organizations will be to help the usefulness upon stock
and additionally cause time period comparative properties, albeit simultaneously recording
foundations connected with level and also bettering client administration with separated and viable
methodology. (Miller, 2002).

2.6.4. Traveling Administration in Pipeline Logistics:

Greatest individuals envision Lorries and trucks driving down on straightforward street or a
motorway. As we realize that logistics has a far more extensive significance, yet transport is
absolutely one of its principle and indispensable segments (Bold, 2002). Prior this study talked
about that materials taking care of in concerned with the developments inside of the office where
as transport spotlights on the development of products between offices (San, 2008). Going further
towards the second and essential driver of inventory network execution that is transportation which
none of the organizations gave minimum significance. Transportation is just genuine
developments of individuals alongside items from destination to an extra. Vehicles is among the
major alongside principle exercises in logistics, surely where a configuration of your vitality
alongside area force is completed.(Xan, shin, & peng, 2013). Transportation by and large plays an
imperative position with choosing the specific conveyance development as there is unquestionably
an extraordinary association in the middle of circulation development alongside transportation
development since exchange accuses along of proficiency typically are one of numerous critical
components with choosing the general dissemination development connected with furnish
archipelago inside alongside far from business. Together with that transportation plays a key
position with sparing accomplishments by essentially empowering the specific secure alongside
helpful circulation connected with stock alongside suppliers over the give archipelago.
Transportation identifies with different implicit logistics schedules inside alongside far from
business. Without transportation the specific inherent logistics procedure battles. With no
transportation back connections, crisp material are not able to move over the give archipelago
which is in the distribution centers alongside vegetation, not can without much of a stretch the
specific completed thing move out from the spot so as to region stockrooms to wrap things up for
the buyer. (Dijade, Melay, & Annah, 2001). As indicated by (Stewart, 2002) , transport is in charge
of the physical development of materials and supplies between diverse focuses in the inventory
network. Without a compelling and effective transportation framework, local and global monetary
development would be unimaginable (Dijade, Melay, & Annah, 2001). It generally implies the
most essential single component in logistics costs for most association and firms. Cargo
development and development of shipments have been seen to ingest between 33% and 66% of
aggregate logistics costs. That is the reason the logisticians require a decent comprehension of
transportation matters (Dakwot & Rampusharma, 2008).

2.6.5. Stock room Administration in Pipeline Logistics:

Prior this study officially examined that the production network administration in particular, is the
procedure of effectively dealing with your development associated with supplies and also finished
stock originating from retailers to have the capacity to clients utilizing the creating offices and
distribution centers since potential middle of the road measures. (Dingard, Serie, & Taunu, 2005).
Remembering this, the third driver of store network at the top of the priority list, that is
warehousing or offices, for that all associations keep and hold stock. Stocks happen anytime in the
store network where the development and stream of materials is separated or the development of
materials is moderate. Most associations organize stocks to be kept in stockroom (Tersa, 2004).
These distribution centers may be open fields where crude materials like coal, metals or vegetables
are helped; or modern offices that give the right conditions for solidified or fragile materials
(Landero, 2011). Warehousing and additionally dealers developments assets away space and also
deals with every one of them until they may be essential so as to wind up utilized and compelled
to end up changed over into finals things. Numerous assets oblige specific consideration with the
goal that they must be dealt with style, for occurrence cold suppers, solutions, liquor utilization in
bond, substances which radiate exhaust, pets, and additionally unsafe things. Alongside the thing,
verifying that assets is generally realistic quickly when important, warehousing similarly makes
sure that they have got the right issues, treatment and also appearance to keep up every one of
them fit as a fiddle, for securing legitimate type of assets, inside fitting sum, in legitimate issue,
towards legitimate place and additionally customer, for the best possible minute with the correct
expense. Capacity has dependably been an essential part of both firms and monetary improvement.
Financial advantages of warehousing happen when general logistics expense are lessened.
Financial advantages may incorporate combination and break-mass, sorting, regular stockpiling
and converse logistics (Boston, Clarke, & Schwartz, 2009). Moreover, distribution center is any
site, area or spot where loads of material are hung on their excursion through supply chains
(Duckles, 2001). For the most part individuals utilize various diverse terms for distribution centers,
basically utilized dissemination focuses as putting away completed merchandise on their approach
to last clients, while logistics focuses store a more extensive blend of items at distinctive focuses
in the production network (Schwatz, Bellaram, 2008). Other than aforementioned, diverse names
are utilized, for example, travel focus to demonstrate that the office stores materials as well as does
an assortment of different employments (Stewart, 2005).

2.6.6. Data administration in Pipeline Logistics:

Presently advancing to the 4th driver of production network administration that is data, the study
officially talked about before that inventory network administration is truly a numerous part
method for arranging, overseeing furthermore using a basic yet viable furthermore intense
development including not only stock, however furthermore suppliers, budgetary, stock and the
lion's share altogether data on the spot including sources and additionally from the point where
everything began to the level including utilization and also to the level in which everything
closures. Remembering this contention, a definitive point is to achieve agreeability with the
purchaser's prerequisites which prompts consumer loyalty. What fundamentally data the scientists
discussed is to make such a framework where each procedure all through the inventory network is
coordinated so it is anything but difficult to share significant data which incorporates interest signs,
gauges, stock and transportation both inside and outside the association so that the association,
firm and organizations have the capacity to adapt up to extraordinary changing environment in
which they are working (Ratra, 2001). Also, two or more firms and associations is
straightforwardly connected by one or a greater amount of the association for the streams of money
related, items, administrations and data from source that is suppliers to the clients that are
customers (Spinzee, 2000). Anyhow, now in light of the dynamic changes and strengths, we need
to change and grow new procedure to pick up however much as piece of the pie, meet the
necessities of clients, to bring adaptability as much as could reasonably be expected all through
the chain, to adapt up to the extreme changing prerequisites and requests of clients, and that is just
conceivable if and if the associations gets fruitful in sharing important data over all strides and all
levels of the store network from source to the point of utilization. The all the more sharing of
profitable data over every progression of production network that is from acquirement to suppliers,
from suppliers to assembling division, from assembling to wholesalers or wholesalers, from
wholesalers to the clients, so as to accomplish objective and point of building solid and positive
relationship which will bring about adding to a win-win circumstance. Moreover as indicated by
(Jack D. , 2005) store network is the place associated associations are working co-operatively and
commonly together to get proficiency and viability the stream of budgetary, items, administrations
and most essential data over the inventory network from suppliers to end clients. The concentrate
prior was redesigning data over the association in every division, making them coordinated with
one another to stay up with the latest. However, with time a need was than felt to consolidation the
office and present the powerful utilization of innovation to tackle power and rate. The advantages
that would develop by connecting the interior elements of associations that may incorporate deals
and appropriations, fabricating ,human asset division, obtainment, inbound logistics, outbound
logistics and acquiring with the suppliers and source. This would permit the firm, association and
organization to have more control of general operations and having ongoing data to make the
checking of each procedure and steps compelling. (Mamta & Rahul, 2007).
The most earlier and imperative purpose behind outsourcing particular movement from the store
network is an expanded accentuation and focus on center competency and to spare the association's
capital. Also firm fore-sights remembering the long haul advantage, utilizes the force and aptitudes
of pipeline method of transportation and its beat practices to lessen general cost and give better
and proficient administrations to help store network execution (Dohal, Lamba, & Jozz, 1998).

2.6.7. Impact of Outsourcing stock administration:

Extreme changes and instabilities in which the associations and firms are working, outsourcing
has now get to be transcendent alternative for all organizations and association and is acting
deliberately device to pick up favorable position, make headway with one stage from
adversaries/contenders and adapt up to unverifiable fluctuating interest, coordinating their ability
of operations with obliged request and manage their piece of the pie. Besides outsourcing a whole
area of stock administration will bring about lower working expense, making process quicker
(slope up time), more simpler to include and concentrate diverse procedures in the middle of the
chain which will bring about making lead times shorter, making administrations and business
sector reach powerful and cutting down administrative boundaries to least level (Peng, Di, & Zoi,
2004). This will give a chance to firm, organization and association to obtain entrance to new
markets in which the logistic administration supplier is working, particularly in recently creating
nations and decreased expense happened by that firm through a lower expense structure. Before
going for the alternative of outsourcing stock administration or stock office, the firm or association
ought to take under thought deliberately outsourcing, that is the place a firm need to fundamentally
examine "" make to stock capacitated generation framework "" where the firm ought to take under
thought of taking care of and fulfilling the demand level in convenient way, if not than pick outer
source (Peng, Di, & Zoi, 2004). This will assist the organizations, organizations and associations
to transform their altered expense into variable expense in addition to enhanced quality,
profitability and administrations to fulfill end customer which is at last the principle point of the
association. Also outsourcing overseeing stock is practical alternative when stock holding or all
the more critically multiplying is costly (Tolie & Teghaskar, 2002). Remembering this, the
organizations go for the outsourcing choice predominantly to lessening that happening expense in
addition to abbreviate the process duration, to enhance the danger administration and reduction the
general danger confronted. The specialists and studies have effectively examined before that no
firm, organization and association have aggregate control over the business request and variances
in it. Request as well as limit too, managing in addition to cooperation with the temperamental
suppliers and wild work drive in-house to some degree, machines and different assets essentials
for the operations of the association. Remembering the above contention, they firm ought to select
strategic arrangement of outsourcing your stock administration segment totally, to convey the
negative impacts to least level (Peng, Di, & Zoi, 2004). By doing as such the organizations will
have a chance to acquire skill by taking proposals in addition to figuring out how to whom they
are outsourcing their particular office, abilities and innovations that are alarm in nature and not
accessible effectively, to pick up an edge over their adversaries, rivals in addition to in the business.
The alternative of outsourcing stock administration becomes possibly the most important factor
when the mean interest level is high contrasted with the company's own particular limit level
(Pegrale, 2002). To match the obliged interest level with the limit level of firm, the choice of
outsourcing will help the firm in diminishing the danger confronted by this jumbling. To whom
the particular office is outsourced or outsider logistics supplier will minimize this danger by
utilizing their unrivaled skill aptitudes.

2.6.8. Impact of Outsourcing Traveling administration:

Effectively examined in this study, the logistic administration suppliers are fundamentally little
association, firms and organizations famous and associated by partnerships as noteworthy piece of
aggressive long haul technique. Remembering long haul system, the most essential pretended in
moving the crude materials (Provider to assembling, from assembling to creation, from generation
to appropriation lastly to the business to give them to last clients or shoppers) to travel through
both neighborhood and worldwide markets. Presently the execution of showcasing, assembling
procedures, the entire logistic channel, stock administration and warehousing absolutely depends
on the compelling working of transportation division. This will lead organizations, firms and
association to concentrate all the more on the use of outsourcing transportation area to oversee
exercises effectively and successfully. Amid 1980, to acquire changes transportation benefits all
through the store network, the fundamental element was to lessen the general expense acquired.
Albeit some different variables were likewise effecting logistics and inventory network around
then is as yet effecting. In view of the decontrol and deregulation of the transportation area,
accessibility of most recent/ upgraded advances, broad supply chains and excessing a few
businesses crosswise over all around have all congregated and power to shape extraordinary and
new environment (Diana lee, 2010). Notwithstanding it prior in 1994, Dichemann and Zoganda
said that there is an interface and connection that exist between the structure of transportation and
the structure of conveyance due to the essential components, for example, cost and execution
thoroughly relies on the appropriation structure. Restricted or the other, to make the circulation
structure effective and work viably, there ought to exist an in number joint effort, association,
affiliation and system between transportation division and dispersion framework (Dichemann &
Zoganda, 1994). In backing of it, mastermind and compose the circulation structure in such a path,
to the point that it diminishes inventories, minimizes expense happening from distribution center
operation, productivity creates in conveyance execution and setting aside a few minutes as shorter
as could be expected under the circumstances and this has additionally been sealed from the writing
(Flingman, Tirus, Sutken, Zoopero, Deki, & Clauster, 1994). Scientists have effectively talked
about in their before studies that the fundamental and premier explanation behind outsourcing
particular office are to decrease work cost and cost, to pick up aptitude, make diminishment in
lacking resource, lessening in transportation cost and decentralizing the workload. Other than these
reasons, incorporate the element of control by the administration over particular office by a few
specialists repudiate to the later variable that is control of administration (Diana lee, 2010).

A few creators have given diverse clarifications why a firm, organization and association ought to
outsource their transportation office to logistic administration supplier. A firm ought to outsource
its transportation division to concentrate on their "" center'' exercises and procedures all together
diminish cost, exertion, time and assets which will prompt misusing logistics aptitude and addition
upper hand (Deemark & Uyou, 2005). Maybe squandering time and assets on exercises which are
not straightforwardly identified with the center competency of the association, the firm ought to
outsource it so as to pick up the utilization of overhauled innovation (Warehouse administration
provider is utilizing), managing rare assets, decrease in capital venture and less use of firms assets
which can be utilized some place else successfully. Besides, (Tailor & Peter, 2001) underlined that
the transportation area must be outsourced to the outsider logistic administration supplier which
will advantage firm by picking up and utilizing learning of expertized outsider logistic
administration supplier to diminish the expense, setting aside a few minutes shorter and satisfy the
tweaked needs and requests of the clients. Prior (Jack, 2002) said that the company's principle
focus ought to be on outsourcing association's transportation segment would bring about lessening
level of the stock, will permit organizations and association to infiltrate and enter a few businesses
both locally and globally. Last however not the slightest; it will make a solitary purpose of contact
which will bring about the powerful stream of data all through the chain.

2.6.9. Impact of Outsourcing stock room administration:

Presently a day, numerous fruitful organizations attempt to take under thought and concentrate on
the center competency, center business and components which straightforwardly influence it and
get other helpful and convenient needs from outside logistic administration supplier or suppliers.
As a result of the lead time and rare assets, organization, firm and association has a choice of using
the administrations of logistic administration supplier which is a striking and great alternative for
the particular firm. The reason an organization ought to go for this choice is to get leeway from
specific aptitude and aptitudes, outer warehousing and logistic administration supplier to have the
capacity to convey benefits convenient in addition to accomplish the work in productive way and
cost adequately. As (Zee, Deschel, & Lizel 2002) said that exercises identified with warehousing
are vital to aggressive procedures as well as and also includes an unfathomable and expansive
scope of quality included exercises that can assume a fundamental part in building solid
establishment for increasing upper hand. Also (Jwanah, & Costrick, 2007) disclosed that so as to
manufacture solid and successful execution in general distribution center administration,
outsourcing would not just impact a solitary determinant how about we say client administration
quality. Standard and exemplary distribution center administration incorporates compelling stock
administration, proficient utilization of overhauled innovation, adaptability all through the store
network channel, improvement in human aptitudes and capacities, treatment of materials,
perceived of crude materials and completed products all through the store network, brought
together and strong stream of data all through the chain and budgetary position. To defeat the
difficulties confront by the association and firm in administration of distribution center, an
association has a choice of either utilizing their own particular private stockroom by redesigning
their framework or they ought to contract the administrations of outside expertized logistic
administration supplier to which number of preferences and advantages are related to be specific
expense diminishment which prompts increment in funding to be utilized as a part of other
advantageous open doors and crucial tasks, giving administrations in addition to altered
administrations to the client proficiently and all the more significantly, driving the firm and
association to focus all the more on its center business and point rather squandering assets and
time on different capacities (Detus & Walles, 2004).

Through client administration review expressed that two crucial and essential determinants in
particular the area of stockroom and expense connected with it in addition to its administration
assumes significant part in expense diminishment and setting aside a few minutes shorter. For
creating firms or association to be fruitful in future, they must take after an aggressive
administration separation system in which the firm or organization has the capacity distribute and
use assets in such a path, to the point that makes quality to the important clients. This is just capable
if firms or associations use the administrations and mastery of outsider logistics supplier. Past
specialists proposed that numerous associations were ignorant concerning see the favorable
position and advantages appended in abusing the opportunities produced by utilizing and using the
ability of outsider logistic supplier which prompt creating game changer. Making game changer
in away, remembering the redid items, necessities and administration and moving the assets inside
of the firm to outside logistic supplier for compelling execution arranges, procedures and methods
to meet those altered prerequisites (Dwostria & Carfferck, 2003). As (Zee, Dostee, & Scapp, 2011)
introduced some potential and fundamental future advancements created because of outsourcing
the distribution center which for the most part incorporate ; making the stocks accessible at better
places, getting rid of this delegates between alongside beginning essential submitting originating
from manufacturing plant so as to customer, staying far from loads of stockroom, exchanging stock
utilizing information, fulfilling this redid determinations joined with clients, joining associated
with exceptional product offerings in the key distribution center joined with logistic organization
doing this reason minute quicker, relating remarks from clients alongside administration so as to
administration supplier's stockrooms; successful controlling alongside helpful stream joined with
recyclable, capacity with technique alongside finished products.

2.6.9. Impact of Outsourcing data administration:

The primary rivalry that exists between distinctive association and firms are not in regards to item
and administrations but rather the supply channels and production network administration. The
critical point here is not just the stream of products that stream all through the chain, however the
joining of exercises all through the store network. How essentially the connection can be created
is by systems administration each segment, each chain all through the production network so that
the powerful data stream takes places both ways that is from suppliers to clients and from clients
to suppliers. Presently a few organizations and association doesn't give much significance towards
building up a reinforced data arrange all through the production network, which later gets to be
casualty of coming up short firms. The concentrate here is to create and apply a brought together
framework approach which oversees whole data stream, materials stream and coordinates each
office and segment from supplier's crude materials through assembling plants and distribution
centers to the end client (Jhon, 2003). Numerous organizations and association with a specific end
goal to fortify the data office and enhance the incorporation all through the chain, the firm mostly
outsources the data segment to create front line method to accomplish its essential goals, that is
the reason numerous organizations and firms concentrate all the more on data innovation when
contrasted with different divisions and segments. By outsourcing the data segment to concentrated
outsider logistics supplier which utilizes electronic store network administration, it advantages the
association and firm in a manner that it incorporates distinctive levels of store network, which
prompts less utilization of labor, lessening time spent in correspondence and assets needed for
connecting diverse office with one another which brings about gigantic diminishment in expense
(Klajia & Anninston, 2002). Additionally, to make this framework get executed, numerous
outsider logistic administration suppliers are utilizing electronic inventory network administration
framework to coordinate and join suppliers, makes, merchants and end-clients, as data innovation
has get to be indispensable piece of production network administration. As this framework utilizes
web, that is the reason it makes capacity to make diverse associations get connected with one
another and incorporate with whole inventory network channel from in reverse channel/ joining to
forward channel/ incorporation to guarantee the successful stream of significant data. Outsourcing
data office to concentrated outsider logistics supplier which utilizes electronic inventory network
administration framework will bring about broadening the methodology in addition to extent of
the firm that catches each procedure and viable determinants from suppliers to clients. The
immediate and profitable data in regards to stock level shared to the suppliers and producers will
cause both sides to renew inventories as and when needed. It's critical and fundamental in current
time in addition to in nearing future that association ought to be electronically joined with their
source and suppliers to get continuous and compelling data about the stock levels to minimize the
extreme changes confronted because of the adjustment in the variances sought after (Patel &
Sigale, 2004).
Each firm can diminish its obtainment cost successfully by outsourcing its data administration
division to outsider logistics supplier which utilizes electronic store network administration
framework by giving and introducing moment and continuous data to its suppliers naturally. By
executing this approach, the suppliers will have the capacity to access to important data with
respect to accessible stock, obliged stock and stock to be requested in particular time, prompting
less contribution of buying division in the vast majority of the exchanges sparing assets, labor and
time. Maybe squandering time and assets on less critical exercises, the center of upper
administration ought to be on exercises which are giving higher quality which fundamentally
incorporates determination of suppliers and enhancing association with them (Detrowich &
Arnold, 2001). As indicated by (Dosch, 2002) the firm that uses to outsource their data
administration area to outsider logistic supplier which uses incorporated framework in view of
electronic store network administration can get convenient and more precise conjectures in regards
to item and administration request. As this framework is taking into account legitimate and
successful generation arranging, the general lead time will diminish for the creation of
merchandise danger confronted and expense caused because of the stock-out. Through electronic
inventory network administration framework, the logistic administration supplier isolates the
suppliers into diverse level. By doing this, outsider logistic administration suppliers can without
much of a stretch distinguish and assess the level of joining and connection to be kept up with
particular level supplier, level of data to be imparted to that level and enhances the data structure
and foundation all through the anchor to manufacture compelling establishment for sharing of
profitable data.

2.6.10. Third Party Logistics in Sui Northern Gas Pipeline Limited:

Each association is attempting to augment and use the accessible and rare assets at time of
vulnerability. Managing their business portfolio against constant increasing expenses, soaring
costs and furious rivalry had been and will be the greatest test to handle with. Among all variables,
the expense component remains an experiencing one particularly in gas industry in dealing with
their stock, warehousing, transportation, obtainment and getting connected with every single office
all through the chain as both costs and interest varies radically both in fleeting and also long haul.
As gas industry has an awesome potential among every other industries, persistent development
in its request is expanding weight step by step on upstream coming about for more mind boggling
ventures with gigantic capital speculation. Also, the difficulties and weight confronted by upstream
commercial ventures because of, not just the evolving environment, fluctuating interest and higher
cost yet ability, mastery and aptitudes being practiced and actualized in production network
administration. The higher the skill, aptitudes and ability among the diverse channels all through
the chain, the higher the edge created in the downstream.

It began in 1990s where each upstream business requests extensive speculation, astuteness and
snappiness in discovering, investigating and creating gas and changing over the altered expense
into variable expense. With a specific end goal to take care of rising demand and addition focused
edge, associations and firm accentuated and focused on the structure and procedures of their
organizations, revamping their method for operations, reengineering their procedure and putting
resources into redesigned innovation. The organizations moved towards the choice of combination,
acquisitions and joint endeavors which prompt the making of collaborations, picking up economies
of scale and making a huge increment in offer holders esteem.

Officials in gas industry began investigating distinctive vital and powerful methods to enhance the
indispensable and main concern remembering the BPO. The merger, procurement and organization
together weren't that powerful in elevating the association and firm over the long haul. The officials
thought that it was exceptionally troublesome, costly, prolonged and complex to oversee and
handle non-center and unessential regions of their business which fundamentally incorporates back
and bookkeeping, warehousing, stock administration and transportation and over gave them to
outside specific outsider logistic administration supplier to minimize the impacts brought on by
those variables at any rate cost.

2.6.11. Impact of Outsourcing Traveling in SNGPL:

Overseeing production network in gas industry is exceptionally troublesome and complex to
handle. To overcome difficulties confronted by the players in gas industry, each firm and
association needs to bring advancement, effectiveness and viability in its inventory network
administration remembering the rate at which the interest and costs of gas items vacillates. The
arranging grew by the upper administration and upstream players does not get actualized as it
ought to on account of the absence of adaptability all through the chain, absence of ability, long
transportation , longer lead times and method of transportation prompting higher expense. What's
more, the outcome is uneffective and wasteful mix of arranging over the production network
(Sherlick, 2011) . Notwithstanding it, a postponement in extraction and generation either from
upkeep or disappointment prompts increment in expense because of the creation misfortunes in
addition to the sum the firm or organization needs to put resources into warehousing, overseeing
stock having rare assets, taking care of development of products from one spot to other place
through more courses with postponements and expenses are among the indispensable components.
For these difficulties to overcome there is an in number need to outsource non-center and
unessential business procedures to outsider logistic administration supplier to adjust and execute
the incorporated arranging productively which will lead discovering, investigating and assembling
gas items successfully (Rahul.W, 2007). Because of globalization, the world now appears like a
worldwide town and the separation among diverse accomplices and players working inside of the
inventory network particularly in gas industry have expanded prompting higher transportation
cost, longer lead-time in addition to more risks of postponements. As a result of this there is a need
to create extraordinary store network process and usage and outsourcing non-center procedures to
outer logistic administration supplier to overcome boundaries, diminishing lead-time and
incorporating over all production network (Sherlick 2011). Because of broad and expanding
separations, extraordinary evolving environment, expanding interest, mounting requesting and
conveying cost, each firm and association working in gas industry now tries to minimize the impact
in practical way as they select to store more prominent measure of well being stock to abstain from
mounting transportation cost (Sherlick, 2011). As a result of the high variability in expense of
transportation and defers in gas industry can hurt the administration level at both upstream and
downstream and expanding holding well being expense can prompt intensify the company's
execution all through the chain (Sherlick, 2011).

2.6.12. Impact of Outsourcing stock administration in SNGPL:

The preeminent and imperative test confronted by firms working in gas industry is to handle with
is the administration of stock remembering the interest element. To keep harmony between the
client needs and holding stock as per those needs oblige impressive time and skill to produce
benefit. That is the reason the greater part firms choose outside logistics administration supplier to
beat these boundaries (Desoza, 2008). Abundance of stock in the business is give or take worth
ten billion which makes each association to decide on and actualize the best and exceptional
practices utilized by outsider logistics supplier regarding redeployment and aura all through
production network to convey the execution up to the standard (Clarke, 2006) . The sole purpose
behind the presence of overabundance stock in the oil and gas industry is holding unnecessary
security load of crude materials; work in procedure, completed products, administrations and
upkeep, repair and operations items on the grounds that if there is any deferral for even a solitary
day will enjoy the firm to close down their operations and procedures which will specifically build
their immediate expense. So that is the reason more firms depend and settle on outsider logistic
administration supplier to overcome such boundaries and difficulties both in the fleeting and over
the long haul in light of the fact that stock conveying expense, requesting expense, holding expense
and different expenses connected with it are inadequately controlled costs in the event that they
are completed by the firm itself. Outsourcing a whole area of stock administration to outsider
logistic supplier will give a chance to the organizations working in gas industry, to propel in new
markets in which the logistic administration supplier is giving its administrations, particularly in
business sectors where gas have higher potential and which will prompt lessen general expense
acquired by that firm all through production network stream (Clarke, 2006).

2.6.13. Impact of Outsourcing data administration in SNGPL:

Outsider logistics administration supplier helps firms and association working in gas industry by
giving and offering them extensive variety of Information Technology administrations which
incorporates outsourcing of programming utilized for data business forms, application outsourcing
and outsourcing of framework (Duvick, Zolo, & Fretch, 2009). Outside logistic administration
supplier's valuable methodology and utilization of Electronic Supply chain administration
framework helps firms and associations which are working in oil and gas industry to lessen their
expense, augment their arrival from restricted IT speculations, produce proficiency in business
forms and create viable industrialized abilities which are extremely modest bunch over the long
haul (Gautam, Vinu, & Kristin, 1998). Taking about the outsourcing of utilization programming
utilized for overseeing data, A firm which gives different logistics administrations to a few
organizations working in gas industry has served more than six hundred application outsourced to
its different clients in forty seven distinct nations to address complex business application
frameworks which chiefly incorporates overseeing markets, produce vitality all through
production network, starts diverse operations in viable way, create and enhance client relations
and report to partners which will prompt superior through application and data outsourcing.
Outsider logistic supplier connects with to meet gas organizations and client necessities by
conveying best and novel information technology experts to backing association's staff, giving
them with scope of administrations and applications to expand their degree, aptitudes in addition
to capacities which will influence association's execution specifically. The abilities and aptitudes
gave by the specific outsider logistic supplier are, expense focused, practical and simple to execute
all through production network (Zechkowich, Dinnen, & Baback, 2007). Outsourcing
administration of data for association's working in oil industry all through the production network
incorporates outsourcing application administration, improvement and upkeep for new and
existing applications and advancement Oracle and Microsoft application which will prompt
diminishment of expense, time and less use of rare assets (Zedrick, 2013). The center of outsider
logistic supplier is on the change of gas association's IT capacity to overcome boundary and face
challenges viably and accomplish their business key points and objectives (Klaud, 2011) .

2.6.14. Impact of Outsourcing stock room administration in SNGPL:

Stock administration, traveling, and overseeing data distribution center administration likewise
assumes key part in deciding the expense and execution components which straightforwardly
influences the association's operations. Remembering this situation, numerous associations
working in gas industry have other exceptional and one of a kind procedures to oversee stockroom
in such an approach to decrease general expense, lead-time and enhance the stream of products all
through the chain. That is the reason numerous organizations working in oil and gas industry
outsource their stockroom administration and related exercises to concentrated outsider logistic
supplier to deal with their stocks successfully. What really concentrated outsider logistic supplier
by utilizing their abilities and ability, oversee firms warehousing through upgraded systems and
innovation like cross docking, numbering of cycles, exchange of merchandise starting with one
spot then onto the next spot and distinguish right item needed in right amount at correct time, harm
and pressing. By utilizing these procedures with redesigned innovation, outsider logistics supplier
has the capacity wipe out the stockpiling of abundance stock, request picking of crude materials
and completed products and minimize the danger appended with putting away that stock.
 Chapter No: 3
3.1. Designed and implementation:

The sharp aggressive weight of current developing worldwide environment has constrained
associations to focus all the more on their center destinations and outsource all other non-center
capacities to enhance general production network execution. Also firm fore sights remembering
the long haul advantage, utilizes the ability and aptitudes of pipeline mode of transportation to
decrease general cost and give better administrations to support general store network execution
(Dople & Sharicke, 1998).

In this area of study, we delay the officially talked about contentions of outsourcing particular
divisions and elements of the association to pipeline mode of transportation administration supplier
and create planned system for this study as indicated.

STOCK
ADMINISTRATION

TRAVELING
ADMINISTRATION

PIPELINE MODE OF
STOCK ROOM
TRANSPORTATION
ADMINISTRATION

DATA
ADMINISTRATION
This task system for this study is taking into account see the impact of supplying the items and
administrations of the association through the pipeline method of transportation as far as expense,
execution, lead time, process duration, conveyance time, coordination, capacity to utilize rare
assets , business center, development, speculation variable, adaptable foundation, overseeing of
danger and obtaining entrance to new channels and markets. The figure demonstrates the impact
of outsider logistics on the general inventory network execution. The subordinate variable is
further separated into four determinants that are stock administration, stockroom administration,
transportation administration and data administration.

3.2. Independent and Dependent Variables:

Type of Variables Variable References

Independent variable Pipeline mode of (Kristin & Lieb, 2010)
transportation
Dependent variable Supply chain performance (Sohal, Millen, & Moss, 1999)
Dependent variable Stock management (Waters, 2003)
Dependent variable Stock room management (Panayiotou & Aravosis, 2011)
Dependent variable Transportation management (David J, Lemay, & Hanna,
2002)
Dependent variable Data management (Koch & Chriostopher, 2003)
Table 1 Independent and Dependent Variables
Chapter No: 4 Testing Methodology:
4.1. Organizations Analyzed for the Project:

Only one firm operating in gas industry namely Sui Northern Gas Pipeline Limited (based in
Islamabad) was analyzed for carrying out this project. A formal request was sent to the higher
authority and management, seeking permission for analyzing their organization and distribution of
questionnaire among their employees. After approval of formal request, 25-40 questionnaires were
distributed and emailed to this firm.

4.2. Selection of Sample for Project:

The Project is observation based and has been restricted geographically to (Islamabad) and is only
limited to one firms operating in gas industry, namely (Sui Northern Gas Pipeline Limited).

4.3. Project’s Population Frame:

Detailed theoretical study outsourcing pipeline mode of transportation functions to third party
logistics service providers specifically on firms operating in gas industry of Pakistan has not yet
been conducted. Due to time constraint, the observation and research carried out were only based
on firms operating in gas industry within Islamabad region. The aims of the research were to figure
out vital factors of pipeline mode of transportation, pipeline mode of transportation outsourced to
third party logistics service providers and its effect on overall supply chain performance. To figure
out the significant effect, 25-40 questionnaires were distributed in SNGPL Islamabad.

4.4. Questionnaire Face and content validity:

The questionnaire initially developed for this project was shown to two professionals of gas
industry to clarify and remove any mistakes in overall formatting, structure of sentence and clarity
of sentence. Moreover, to check the validity of variables, content validity test was carried out to
confirm whether the variables selected for this project has significant role or not, whether these
variables could be used in related field or not or certain changes are required in variables to make
it standardized.
 4.5. Time Horizon for Project:

It almost took 3months and 15 days to start, study, observe, assess and execute the study. Time
horizon for this study remains over a short period which is cross sectional.

4.6. Nature of Project:

The nature of this study is adapted, as projectors had already worked on outsourcing specific
business processes and functions in gas industry and tried to check the effect of pipeline mode of
transportation on overall supply chain performance, but those studies were carried out in one
geographical region with different factors effecting as compared to Pakistan. Before starting this
study, it was found that very few of projectors have worked on outsourcing an entire section of
pipeline mode of transportation to third party logistics service provider specifically in gas industry
based in Islamabad. Henceforth, this is a new dimension and quality project.

4.7. Project Validity and Reliability:

To increase the validity and reliability of study, logics and reasons were given through established
theories like transaction cost theory; resource based theory, network base theory and further
evaluations ware carried out through analyzing results received from questionnaire filled by the
targeted employees.

4.8. Project data collection procedures:

To evaluate the effect of pipeline mode of transportation on overall supply chain performance,
closed ended questionnaires were distributed among employees of firm operating in gas industry.
Fresh data based on real time information were collected through filled questionnaires for carrying
out further analysis.

4.9. Project’s Demographics:

Respondent’s Profile:

For this study, the projector has targeted supply chain managers, distribution managers,
procurement manager, logistic manager, and some key persons which are directly involved in areas
related to this project which includes planning and forecasting, purchasing, product assembly,
storage, distribution and sales department, inventory management, materials handling, order
processing, packaging, traffic and transportation, warehousing and storage, reverse logistics,
production control, inventory planning and control teams of the firm operating in gas industry
which includes SNGPL (based in Islamabad region). All respondents to whom the questionnaires
were distributed were chosen on the basis of their managerial post and work experience.

Project’s Demographical Statistics:

This table explains the respondent’s frequencies with respect to the designation.

Valid Cumulative
Designation Management Frequency Percent
Percent Percent

Top
2 1.0 1.1 1.1
management

Middle
35 17.9 18.9 20.0
management

Front line
99 50.8 53.5 73.5
management

Other 49 25.1 26.5 100.0

Total 185 94.9 100.0

Missing 10 5.1

Total 195 100.0

Table 2: Demographics

The above Table describes characteristics of the demographic variable that is Designation,
in which the respondents lie in four categories which includes top management, middle
management, front line management and other. Total questionnaire which were
distributed equals to 195 out of which only 185 responded. Out of 185, 2 belong to the
Top Management, 35 belong to Middle Management, 99 belong to Front Line
Management and 49 belong to others (Inventory management, materials handling, order
processing, packaging, traffic and transportation, warehousing and storage, reverse
logistics, production control, inventory planning and control management).

Frequency Percent Valid Cumulative

Gender
percent percent

Male 154 79.0 83.2 83.2

Female 31 15.9 16.8 100.0

Total 185 94.9 100.0

Missing 10 5.1

Total 195 100.0

Table 3: Gender Demographics

This table explains the characteristics of demographic variable that is gender.

Total questionnaires distributed were 195, out of which only 185 responded. Out
of that 154 are males, 31 are females and 10 were considered inappropriate.
 Frequency Percent Valid Cumulative
Age percent percent

25-30 74 37.9 40.0 40.0

30-35 67 34.4 36.2 76.2

35 and 44 22.6 23.8 100.0

above

Total 185 94.9 100

Missing 10 5.1

Total 195 100.0

Table 4: Age

This above table shows the characteristics of the demographic variable that is Age level. The
respondents lie in three age groups. Total number of questionnaire distributed were 195, out of
which only 185 responded. In that 74 belong to the age group 25 to 30, 67 belong to age group 30-
35, 44 lies in range of 35 and above age group.
 Frequency Percent Valid Cumulative
Highest
percent percent
Qualification
Bachelors 80 41.0 43.2 43.2

Masters 100 51.3 54.1 97.3

MPhil 5 2.6 2.7 100.0

Total 185 94.9 100.0

Missing 10 5.1

Total 195 100.0

Table 5: Qualification

This above table shows the characteristics of the demographic variable that is Highest
Qualification. Total numbers of questionnaire distributed were 195 and out of which only 185
responded. Out of 185, 5 personals are M.Phil, 100 are Masters and 80 are Graduates.
 Work Frequency Percent Valid Cumulative
percent percent
Experience
03-05yrs 88 45.1 47.6 47.6

06-10yrs 39 20.0 21.1 68.6

10-15yrs 34 17.4 18.4 87.0

15 and 24 12.3 13.0 100.0

above

Total 185 94.9 100.0

Missing 10 5.1

195 100.0

Table 6: Work Experience

This above table shows the characteristics of the demographic variable that is Work Experience.
The respondents are divided into four groups of experience. Total numbers of questionnaires
distributed were 195, out of which 185 responded. Out of 185, 88 personals are having 3-5 year
experience, 39 are having 6-10 year experience, 34 respondents are having 10-15 year experience
and 24 are having more than 15 year experience.
Project’s Descriptive Analysis:

Descriptive Minimum Maximum Mean S.D SKEWNESS KURTOSIS

statistics
APMT 1.38 5.00 3.9081 .63804 -1.653 3.014

IV 1.57 5.00 3.7529 .67357 -.750 .473

TM 1.81 4.71 3.7399 .48610 -.521 .675

WM 1.43 5.00 3.6039 .66877 -.651 .529

IM 1.86 4.86 3.6456 .59297 -.575 .149

Table 7: Descriptives

The descriptive analyses of the respondents were based on supply chain management practices i.e.
Third party logistics, Inventory management, Transportation management, Warehouse
management and Information management. It can be observed that the mean value for Third party
logistics is 3.9081, Inventory management is 3.7529, Transportation management is 3.7399,
Warehouse management is 3.6039 and Information management is 3.6456. The standard deviation
for all variables varies from 0.48 to 0.67.
Chapter#5 Action Plan
1.1. Outsourcing Logistics To Pipeline mode of Transportation Motivators:

To figure out why company operating in gas industry take under consideration outsourcing specific
business function specifically talking about inventory management and transportation
management to pipeline mode of transportation service provider to increase overall supply chain
performance, from the questionnaire distributed among all professionals of the related field, the
results extracted for this project lead to reasons that top priority of every firm was to reduce their
overall cost and to convert their fixed cost into variable cost. Secondly, to focus more on their core
capability rather wasting time and resources on improving the bottom line processes, where profit
margin is very low. The third largest motivator for the firm to outsource their logistics was
compliance that is the safety concerns. The risk factor is associated with inventory you keep and
with goods you transfer within your organization and as well as to the end consumer. Keeping this
in mind, companies and firms are looking for pipeline mode of transportation service providers
that are willing to share some risk by using their expertise so that both the parties gets benefit. The
fourth factor which motivates firms and organizations is the flexibility throughout each channel of
firm’s supply chain. As already the project described earlier that supply chain management is
highly inflexible due to certain effective factors like lead time, cost, and performance, flows of
resources and giving and receiving real time information. In order to make their every process and
channel flexible, organization seek the expertise of pipeline mode of transportation service
provider to minimize the risk faced by that inflexibility and would allow and explore new
opportunities for the firm where it can excel. The fifth motivator which motivates firms and
organization to seek expertise of Third party logistic service provider is usage of scarce resources.
It allows the firm’s and organizations to solely focus more on their core aims and activities which
leads to minimize waste, cost, time and man power to ensure the effective use of scarce resources.
The sixth motivator is the growth enabler, that is firms and organizations outsource to increase
their growth across different geographical boundaries and remain flexible due to changing market
conditions leading to increased market share and wealth maximization. Last but not least,
outsourcing specific logistic activities to third party logistic service provider will benefit the firm
and organizations in terms of cost savings, reduced capital expenditures, capital infusion, transfer
fixed cost to variable cost, increase economic efficiency, increase quality improvement, increase
process speed, generate flexibility, access to latest technology and infrastructure, access to skills
and talent, increased focus on core functions, getting rid of complex processes and increased safety.

1.2. The Discouragements of Outsourcing Logistics to Pipeline mode of transportation:

In contrast to motivators of outsourcing logistics, certain discouragements were observed

(specifically talking about warehouse management and information management) and identified
by the survey conducted in different gas company. The prior among them was the loss of control.
Organization operating in Gas Company do not opt for pipeline mode of transportation service
providers because the company don’t want to give total control of movement of goods and
materials and its check and balance keeping in mind the control and liability associated with those
goods in perspective of safety. The second discouragement is potential risk associated with
outsourcing specific department with ineffective control over it. The third discouragement is that
firm operating in gas industry do not see and realize reduction in overall cost, conversion of fixed
cost into variable cost and efficiency in its operations that’s why they prefer to do all functions in
house rather outsourcing it to pipeline mode of transportation service provider. Forth
discouragement is the critical factors and risk associated with handling petro chemical products
that gas company uses and transports in its daily operations. Most of the firms fear that to whom
they will outsource that function won’t handle the critical products effectively and later they will
bear loss and have to pay additional cost. Last but not least, the company don’t opt for outsourcing
mode of transportation due to potential risk they would face due to lack of expertise of that logistic
provider, unrealized savings or hidden cost in different processes the firm is blind to see, decreased
flexibility in supply chain channels generated due to outsourcing, poor selection of partner, loss of
expertise, ineffective knowledge and skills , fear of loss of core competence, supplier problems,
dependence on the service provider, threatened data security and poor employee issues caused due
to outsourcing.
 1.3. Project’s Suggestions and Solutions:

Project Conclusion:

The project study concludes that to remain competitive in this ever changing and dynamic market
environment, company and firm operating in gas industry must opt for outsourcing specific non-
core activities to gain wealth of other strategic advantages to overcome complex and new evolving
challenges. Due to complexity of managing supply chain in gas industry in a dynamic environment
as well as keeping in mind the globalization factor, has intensified and forced the firms to opt for
pipeline mode of transportation service provider to minimize risk and cost. With the help of
expertise of pipeline mode of transportation service provider, the firms can easily control the
increasing cost and minimize the overall risk faced. Specifically talking about Pakistan gas
industry, a huge opportunity and need exists for pipeline mode of transportation service provider
because a vast area needs improvement specifically talking about procurement, inventory
management, warehouse management, transportation management, information management and
other logistical functions by improving their offered services to gain more business to meet the
customized requirements of firms operating in gas sector. Moreover the study explains how
company and firm operating in gas industry with a good understanding and effective planned
strategy can achieve bottom line results to stay ahead of its competitors in this changing and
challenging environment. Pipeline mode of transportation service provider must be aware of
differentiated needs and requirements of the firms operating in gas sector so that they should use
their expertise and improve their offerings accordingly.
Appendices

Questionnaire:
ANALYSIS OF PIPLINE MODE OF TRANSPORTATION IN SUI NORTHERN GAS
PIPELINE LIMITED

Dear Respondent, May, 2015

We are students of Bahria University Islamabad Campus doing MBA, we are doing a project
on “Analysis of pipeline mode of transportation in SNGPL” for this purpose a questionnaire
has been finalized according on your particular skill and experience, to this concern we will be
thank full to you for giving us a viable feed back, we request you to give your precious time and
answer those questions mentioned in the questionnaire, this will be extraordinary commitment to
the current sortment of information on your part. We guarantee you that the data given to us will
be kept confidential and will be utilized exclusively for study purpose.

We generously request you to give us feed back on the specified scale, ,The feed back given to
us will help us a lot and it will also help the firm to improve their results and performances.

Looking forward to your cooperation:

Name: ______________________________________

Age: ______________________________________

Gender: ______________________________________

Post: ______________________________________

Company: ______________________________________

Education: ______________________________________

Experience: ______________________________________
Pipeline mode of transportation: (Kristin & Lieb, 2010)
Pipeline mode of transportation incorporates any type of externalization and outsourcing
of logistics capacities and exercises beforehand executed and performed ``in-house''
1) Highly agree (SD), 2) Agree, 3) Neutral, 4) disagree, 5) Highly 1 2 3 4 5
disagree. Please break your box for each and every dilemma which
H A N D H
comes nearest thing to sending the opinion about it.
A D

1 Outsourcing pipeline mode of transportation can advantage our firm

by decreasing general expense
2 Outsourcing pipeline mode of transportation give extra assets to our
firm
3 Outsourcing can help our firm to pick up control more than a
troublesome capacity
4 Outsourcing particular pipeline mode can minimize hazard
5 By outsourcing pipeline mode of transportation, our firm can abstain
from squandering assets in non-center exercises
6 Outsourcing pipelines mode empowers our firm to create overhauled
innovation in business forms
7 Outsourcing pipeline mode can help my organization to move from an
altered expense base to a variable expense base.
8 Outsourcing pipeline mode can help our firm to stay adaptable to
changing economic situations.

Stock Administration: (Ditch, 2004)

Stock administration is particularly responsible for the capacity of crude materials,
completed products, consumable things, (WIP) and Service/Repair.
1 Outsourcing stock administration office can help our firm to keep its stock
expenses at a monetary level
2 Outsourcing stock administration can help the firm in development and
conveyance of stock
 3 Outsourcing stock administration office can help my firm to lessen stock
conveying expenses and requesting expense
4 Outsourcing a whole segment of stock administration will bring about
lower working expense of my firm

5 Outsourcing stock administration prompts making process speedier

6 Through outsourcing stock administration, our firm can diminish the
process duration
7 Outsourcing administration of stock, our firm can reduction lead time of
the general procedure.

Traveling Administration: (Tegrus T, Hofftale, & Amanda, 2003)

Traveling concentrates on the development of products in the middle

of offices and towards end client.
1 By outsourcing administration of traveling, our firm can diminish higher
traveling expense
2 Outsourcing traveling would help our firm to manage high variability of
traveling times
3 By outsourcing traveling division, my firm can lessen work expense
4 Outsourcing traveling division, our firm can pick up skill in setting aside
a few minutes successful.
5 Our firm can diminish the workload through outsourcing administration
of traveling
6 Our firm can diminish longer lead times through outsourcing
administration of traveling
7 Outsourcing traveling division, our firm can turn out to be more dynamic
in global delivery
8 Outsourcing traveling administration, our firm can react rapidly to
evolving environment
Stock room administration: (Clageya & Besois, 2012)

Stockroom is any site, area or spot where loads of material are hung
on their voyage through supply chains.
1 Outsourcing stock room helps our firm in following and perceivability of
the stock
2 Outsourcing stockroom administration guarantees our firm the security
and consistence of products
3 Our firm oversees stock through cross docking to decrease stock holding
expense
4 Through cross docking, our firm replaces stock with data
5 Through outsourcing stockroom administration, our firm lessens
speculation which prompts increment in funding to be utilized as a part of
other valuable undertakings
6 Our firm can decrease work and utilization of rare assets through
outsourcing distribution center administration
7 With redesigned innovation utilized by pipeline mode of transportation
supplier, my association has the capacity kill the capacity of abundance
stock

Data Administration: (Deckinson & Ramla, 2004)

Current data to screen every last process all through store network.
1 Through outsourcing data administration, our firm can decrease expense
connected with it
2 By outsourcing data administration, our firm can oversee advertises
adequately
3 By outsourcing data division, our firm can send best and one of a kind
IT experts to backing association's staff
4 Through incorporated framework methodology utilized by pipeline
mode of transportation, our firm oversees whole data stream both
forward and backward
5 Outsourcing Information division to pipeline mode of transportation, my
association coordinates diverse levels of production network
6 Outsourcing data division to pipeline mode of transportation, our firm
can expand its arrival from restricted Information Technology ventures
7 Through outsourcing, our firm has the capacity join distinctive office
with one another which brings about colossal diminishment in expense
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