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The document discusses Pakistan Oxygen Ltd's supply chain management project. It outlines the company's history and product lines. It then discusses the company's competitive and supply chain strategies, noting that it prioritizes responsiveness over efficiency. It analyzes supply chain uncertainties around demand and supply. Finally, it identifies issues with the current strategy and provides recommendations to improve strategic fit by balancing responsiveness and efficiency.

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Amna Noor
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40 views

SCM Slides

The document discusses Pakistan Oxygen Ltd's supply chain management project. It outlines the company's history and product lines. It then discusses the company's competitive and supply chain strategies, noting that it prioritizes responsiveness over efficiency. It analyzes supply chain uncertainties around demand and supply. Finally, it identifies issues with the current strategy and provides recommendations to improve strategic fit by balancing responsiveness and efficiency.

Uploaded by

Amna Noor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Pakistan Oxygen Ltd.

Supply Chain Management Project

Sarah, Amna, Minahil Sec-B


INTRODUCTION

HISTORY COMPANY OVERVIEW


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2
PRODUCT
LINES

Medical Gas Welding & Hardgoods

4 VERTICALS

Industrial Gas Innovative Solutions

3
Competitive Strategy

A competitive strategy is a long-term plan that provides a firm competitive


advantage/ edge over other firms in the industry
RESEARCH &
VARIETY
DEVELOPMENT
Supply Chain Strategy

 Tradeoff between efficiency and responsiveness


 Pakistan Oxygen Limited's supply chain strategy is more responsive than efficient.
WHY ?
 12 industrial units in various cities of Pakistan → shorter lead times
 Responsive in terms of variety
 Right track of logistics (facilities, transportation, and inventory) made it possible for the
company to be available in both predictable and unpredictable times
 COVID-19 Pandemic → time flexibility strategy as part of aggregate planning
UNDERSTANDING SUPPLY CHAIN
UNCERTAINITIES
Demand + Supply

8
DEMAND
UNCERTAINITY

1. Buying Channels
2. Quantity of Product Needed in Order
3. Variety
4. Service Level
5. Desired Rate of Innovation
6. Response Time
7. Product Price

9
SUPPLY
UNCERTAINITY

1. New/Evolving Production Process


2. Process Breakdowns
3. Limited Supply Capacity
4. Productivity & Quality Issues
5. Inflexible Supply Capacity/Process

10
ALIGNMENT
Of competitive and supply chain strategy creates strategic fit

11
ACHIEVING
STRATEGIC FIT

o Developed core competencies in order to achieve this alignment through the


resources and capabilities owned by the company.
o Strategic distribution network and facility location allows Pakistan Oxygen to meet
short lead times and be more responsive.
o Focus towards innovation and research is eminent in all aspects of the company.
o The company has been innovating solutions for its customers and investing
substantial money to improvement of the production processes and safety
measures.
o Responsiveness ensured through time flexibility aggregate planning
o INTER-COMPANY INTER-FUNCTIONAL STRATEGIC FIT

12
ISSUES

Focus on
Sourcing from Small-scale entrants –
responsiveness leads
Foreign Markets may damage market
to tradeoff for
[ER, Uncertainty, share – price-sensitive
efficiency – reduces
Inefficiency] Pakistani consumers
competetiveness

13
RECOMMENDATIONS

Focus on First Mover


Efficiency Advantage
1 3

2 4

Local Manufacturing of Coopetition with


Industrial Goods Smaller Firms

14
Tradeoffs in Resolving the Issues

 Building a local manufacturing unit for industrial goods is both expensive and time
taking
 Local supply chain that is both secure and qualitative is again a very time taking the
task → supply chain is not at all organized
 To gain the aspect of efficiency, Company might have to let go of its responsiveness →
result in quality issues, reliability concerns, and availability problems

Right fraction is set between the two notions may lead to cost reduction shortly
Benefits of Implementing Recommendations

 2,60,000 engineers registered with the PEC in the country → the integration
will provide adequate employment to engineering graduates
 Creation of a local industrial good manufacturer will result in Pakistan not
relying on the import supply
 Joining hands with local suppliers and creating a reliable synergy will
eventually result in long-term profits for the company

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