Supply Chain Transparency and Supply Chain Risk Management in Petroleum Exploration (Pvt.) Ltd

Abstract

This study explores the critical influence of supply chain transparency and supply chain risk management on the operational efficiency of Petroleum Exploration (Pvt.) Ltd. With the rise of digital interventions, supply chain management has become a real challenge for the company, yet the company still focuses on traditional methods of Supply Chain management. This study employs a quantitative approach, using surveys to gather data from 109 employees across various exploration blocks of Petroleum Exploration (Pvt.) Ltd. The study uses multivariate regression analysis to examine the influence of supply chain transparency and supply chain risk management on operational efficiency, identifying a strong positive correlation between supply chain transparency and operational efficiency and a moderate to positive association between supply chain risk management and operational efficiency. Reliability analysis returned a Cronbach’s Alpha of 0.776 across the three constructs, confirming adequate internal consistency and instrument reliability above the accepted threshold of 0.70. Pearson correlation analysis revealed a strong, positive, and statistically significant relationship between supply chain transparency and operational performance (r = 0.657, p < 0.001), confirming that greater information visibility across procurement, logistics, and field operations is meaningfully associated with improved efficiency outcomes at PEL. Supply chain risk management demonstrated a moderate positive correlation with operational performance (r = 0.369, p < 0.001), indicating a constructive but less pronounced association — a finding consistent with the organization's currently reactive rather than proactive risk posture. A strong inter-predictor correlation between supply chain transparency and supply chain risk management (r = 0.613, p < 0.001) further confirmed the mutually reinforcing nature of these two constructs: greater transparency naturally facilitates more effective risk identification and response. Recommendations include implementing real-time sentiment analysis tools, training staff in digital operations, and adopting ERP-integrated supply chain management systems to enhance responsiveness and improve efficiency.