SOURCING & PROCUREMENT

Full visibility combined with intelligent sourcing gives oil & gas industry procurement teams enormous power to maintain price competitiveness, increase profitability, minimize exposure to risk, accelerate cash flow and capture innovation from a global base of suppliers and contractors.

THE SOLUTIONS DELIVER:

  •  Detailed insight into both direct and indirect spending
  •  Timely insight into movements in global commodity prices and cost drivers
  • Ability to aggregate data and model total costs on complex subcontracts
  • Advanced capabilities for sourcing-decision and contract award optimization
  • Detailed insight into both direct and indirect spending
  • Timely insight into movements in global commodity prices and cost drivers
  • Ability to aggregate data and model total costs on complex subcontracts
  • Advanced capabilities for sourcing-decision and contract award optimization

INDUSTRY CHALLENGES

  • Exploration and production endeavors are increasingly cross- cultural, complex and risky
  • Commodity prices and availability are volatile
  • While margins can be very high at times; they can be razor thin to nonexistent at others
  • Disciplined and thorough contract and supplier management empowers oil & gas procurement teams to affect such business performance levers as operating costs, plant up-time, return on capital, and on-time/on-budget completion of capital projects, regulatory compliance and safety. The solutions also enable oil & gas companies to transition away from traditionally adversarial and risk-shifting supply relationships to controlled collaborations that can permanently remove risks from supply chains.

THE SOLUTIONS ENABLE:

  • Thorough vetting and rapid on boarding of suppliers and contractors
  • Structured performance measurement and management of suppliers, including complex subcontract

Relationships

  • Ongoing monitoring and tight management of compliance to contracts
  • Collaboration with suppliers and contractors on continuous performance improvement

SOURCING THROUGH SUPPLY CHAIN

The Oil and Gas (O&G) industry supply chain comprises of diverse vendors, manufactures and agencies that handle businesses such as upstream exploration and production, midstream catchment areas, downstream refined products manufacturing, whole sale and bulk distribution terminals, and retail delivery units.

The supply chains of this industry are highly complex and needs specialized practitioners to manage the applications that help run the business.

From the oil exploration stage to the end user, there needs to be an all-inclusive supply chain model that captures the critical components and all the data in the system. Analyzing this data can illuminate issues and opportunities that can be addresses at various stages of development, production and distribution.

Contemporary O&G companies are on an aggressive growth path and they invest in new and advanced technologies to improve production, storage and distribution, aimed at enhancing their product quality and eliminating environmental hazards.

The global demand & supply fluctuations and market dynamics commonly faced by these companies are challenging, and they recurrently require the ability to analyze, identify improvement areas, create new roadmap and take required actions.

There are solutions from leading system integrators designed for O&G industry customers that enable comprehensive management of operations, thereby improving business performance. These are industry solutions that deliver proven performance, scalability and improve supply chain margins.

Specialized vendors who provide supply chain management and procurement consulting and system integration services for O&G companies can add strategic value to your supply chain operations. They can help O&G customers to formulate supply chain models that optimize the diverse business environment, and bring the stake holders onto a common taxonomy and an integrated management system.

An end-to-end diagnostic of operations can help to shape the profitability and unearth opportunities to increase the efficiency of O&G companies. Specialized solutions in the areas of procurement can help O&G decision makers to improve the project execution and spend effectively on capital projects. A well-integrated supply chain management systems can ensure healthy cross-functional data exchange and cataloguing for implementing best practices and bringing in additional savings by improving the planning efficiency.