APPLIED MARKETINGIntroductionThe objective of this project is to closely review the market channels of Industrial gases products, with a view to establish these channels that includes defining clearly the relationship with third party compression stations. Another objective is to clearly identify the cutoff points as to where the responsibility of BOC ends and the third party‘s responsibility starts. The project will also include the reviewing of all present agreements with different compressing stations and build consensus on a standard format to protect the interests of both BOC Pakistan and Third parties.
This project would result in reduction of cost, greater profitability and determination of safety standards applications for overall improvement in cylinder filling integrity. Current Setup There are seven different channels to the market including direct and indirect sales of industrial Oxygen and Medical Oxygen. There is confusion in the minds of all concerned as to the clear definition and establishment of responsibilities of various parties and the stages where the ownership passes on to the various stake holders. Most of the compression and material handling activities are manual at this stage.
New model will help in increasing efficiency and through put which will result in a leaner and safer operation. First we should closely look at the different scenarios by which our industrial gases reach the end-customers. Scenario 1: In the first scenario, the compression of both medical and industrial gases takes place at BOC site, and after compression BOC delivers the product to the end-customer. BOC is entirely accountable and responsible during all the phases in this scenario. This scenario is applicable to BOC Karachi, Lahore, Taxila & Gujranwala. Scenario 2:In this scenario, the liquid gas from BOC goes to Distributor; Distributor receives the empty customer owned cylinder from customer and tests them as well if required in his premises.
Distributor fills these cylinders and delivers the compressed gas (including both industrial and medical) to the customer. This scenario is for all the 18 distributors currently working for BOC. Scenario 3:In this scenario, the BOC cylinders are filled / compressed by the Distributor and then BOC buys back the compressed gas (includes both industrial & medical) from distributor and delivers it to the end-customer.
Testing is done by the BOC test shop. This scenario is in mainly those cities where we do not have a compression facility like Hyderabad (Maan Enterprises), Quetta (Rasheed Traders), and Faisalabad (Imran Weld). Scenario 4:In this scenario, empty BOC cylinders for Industrial gases are filled by the distributor and he delivers it to the end customer. Scenario 5: Same as Scenario 4 but for medical gases. Scenario 4 & 5 are applicable to: Karachi distributor (NGL, Superior, NLH, IIG)Lahore distributors (Classic, Star)Multan (Multan Chemicals)Faisalabad (J W Gases)Gujranwala (GOC)Peshawar (Shahid Waheed, Taj Gases)Rawalpindi (AIMG, KGL)Hattar (NIGL)Scenario 6:In this case, the distributor does not have a test shop so he operates a compressing station without a test shop and fills customer owned cylinders with both medical & industrial gases and deliver it to end-user.
This happens in Peshawar (Shahid Waheed). Although its not BOC responsibility/liability but running a compression station without any test shop is unsafe.