APL Sourcing Process

Team Members:
Ahmed Maqbool
Akif Mansha
Waleed Ashar
Sameer Ahmed
Hussain Pyar Ali
Overview of Company:
 Attock Petroleum Limited (APL) is the 4th Oil Marketing Company in
Pakistan to be granted a marketing license and commenced operations in
February 1998.
 The Company is developing a network of modern petrol pumps, especially
catering to far-flung areas of Pakistan, and are significantly contributing to
the development and expansion of the petroleum sector in Pakistan by
developing state-of-the-art infrastructure for storage, handling, and delivery
of petroleum products to local and foreign markets. Currently Attock
Petroleum Limited (APL) has 750 active fuel pumps all over the country The
Company has also penetrated in the oil export business and, in spite of
tough competition from other regional and global players, is in line with the
government’s policy to take maximum advantage of Pakistan’s foreign
exchange and human resources and its strategic geographical location.
 • To become a world class, professionally

Vision
managed, fully integrated, customer
focused, Oil Marketing Company, offering
value added quality and environment
friendly products and services to its
customers in Pakistan and beyond..

• To continuously provide quality and

environment friendly petroleum products

Missio
and related services to industrial,
commercial and retail consumers, and
exceeding their expectations through
reliability, economy and quality of

n products and services.

History of APL:
 Attock Petroleum Limited was incorporated in Pakistan as a Public Limited Company
on December 03, 1995. APL is the 4th Oil Marketing Company that was granted
marketing license and commenced its operations in February 1998. The Company
was listed on Karachi Stock Exchange on March 07, 2005.
APL Product Lines:
APL Procurement Process:
 APL’s Procurement Department sources and coordinates delivery of high-quality materials and services to support our
operations & projects in the most cost effective and timely manner through competitive bidding.

 Our procurement process is driven in accordance with company’s policy & procedures which ensures transparency,
competitiveness & equal opportunity to all the suppliers / contractors and safeguards APL’s interest & integrity.

 We strongly focus on developing and maintaining balanced business relationships with all our suppliers/Contractors
whilst introducing new suppliers/Contractors as part of our continuous improvement process.

 Prequalification Categories and Guidlines

 PF-001 (Category A – Civil Works)
 PF-001 (Category B – Mechanical Works)
 PF-001 (Category C – Electrical, Instrumentation Works)
 PF-001 (Category D – Piping Works)
 PF-001 (Category E – Construction of Retail Outlets)
 PF-001 (Category F – Supply of Material & Equipment)
 PF-001 (Category G – Fabrication & Installation)
 PF-001 (Category H – Supply, Installation & Commisioning of Solar System)
 PF-001 (Category I – Supply, Fabrication & Installation of Prefabricated Structure)
 PF-001 (Category J – Consultancy & Designing Services)
 PF-001 (Category K – Engineering Services for Soil Testing & Topographic Survey)
 PF-001 (Category L – Supply of Uniforms)
 PF-001 (Category M – 3rd Party Certification & Inspection)
 PF-001 (Category N – Petty Contractors)
APL Procurement Policy & Objectives:
 Our procurement process is driven in accordance with company's policy &
procedures which ensures transparency, competitiveness & equal
opportunity to all the suppliers / contractors and safeguards APL's interest
& integrity
 To procure quality materials and services through competitive bidding and
transparent process to ensure most economical cost and to optimize
opportunities to partner with the quality-conscious and value-driven
supplier base in establishing mutually beneficial business relationships, In
order to achieve organization goals with effective and efficient
management.
APL Scope of Procurement:
 Procurement of Goods, Services and Works for different functions of the company
which entails ensuring following procurement process:
 Review of purchase requisitions
 Development of Request for Quotation (RFQ).
 Administration of tendering process.
 Press Advertisements
 Opening of bids
 Technical evaluation
 Award of work
 Pre-Qualification of vendor where needed.
 Disposal of Scrap/Obsolete Assets & Material as and when required.
THE PROCUREMENT PROCESS FLOW
PROCUREMENT FORECASTING METHOD
 Procurement forecast method APL done through ERP software SAP,
where demand and supply planning department forecast the materials
needed for the next upcoming quarters
 The sales team decides the percentage growth rate for the next quarter
and then it forwards it to the demand planning department
 Planning department runs the MRP through ERP SAP and after getting
the required results of how much material is to be required for the
finished goods
 Forwards those requirements to the concerned procurement
department for the procurement of materials and also releases the
schedule for the delivery of materials.
PROCUREMENT FORECASTING
APL sales volume of HSD substantially will increase by 10% in Jun-2022 and sales volume of PMG
increased by 10%. Sales volume of Jet Petroleum will increase by 40% on account of surge in
commercial aviation activities which were subdued previously due to the pandemic. APL sales
volume of Bitumen will increase by 30% due to increase in spending on infrastructural development
by Government in the CPEC projects. Demand for Furnace Oil will increase by 60% due to
consumption of Furnace Oil will increase by power producers in summer season. As a result of the
above, the Company managed to increase its overall market share 25% in Oil industry
Products 1st Qtr Sep 2nd Qtr Dec- 3rd Qtr (Tentative)
2021 2021 Mar-2022 Jun-2022
Demand Increase or Decrease   +/- +/-
High Speed Diesel 23,797,750 39% 33,024,795 2% 33,688,696 10%
Premier Motor Gasoline 31,149,434 10% 34,262,178 3% 35,333,726 10%
Furnace Fuel Oil 21,602,352 -46% 11,566,117 31% 15,111,641 60%

Bitumen 3,080,458 31% 4,030,033 -16% 3,403,609 30%

Jet petroleum 1,879,352 46% 2,750,662 33% 3,670,491 40%

Others 2,035,051 28% 2,599,595 0% 2,592,233 2%
Total 83,544,397 6% 88,233,380 6% 93,800,396 25%
COST MODELING
The price of gasoline at the pumps is essentially made up of various components, each of
which represents a portion of the total oil value chain. The cost of gasoline must account
for each area of the business, from crude oil discovery and production to refining and
end-product distribution. Except for the oil-rich nations, the governments most likely
introduce gasoline taxes to generate revenue also true in the case of Pakistan
In Pakistan, the government controls the price of gasoline, which is announced monthly
or fortnightly by the Oil and Gas Regulatory Authority (OGRA).

PKR/Liter 16/10/2021 10-Jan-21 Change 01-Jan-21 CYTD

Ex Refinery 112.57 102.77 9.5% 57.71 95.1%
Petroleum Development Levy 5.62 5.62 0.0% 22.85 -75.4%
IFEM 3.9 3.88 0.5% 3.53 10.5%
OMC Margin 2.97 2.97 0.0% 2.81 5.7%
Dealer Margin 3.91 3.91 0.0% 3.70 5.7%
Price Before Tax 128.97 119.15 8.2% 90.60 42.4%
Salex Tax % 6.80% 6.80% 17.0%
Salex Tax 8.82 8.15 8.2% 15.40 -42.7%
Total 137.79 127.30 8.2% 106.00 30.0%
THANK YOU!