Let’s discuss procurement strategies which can help your company move forward with the challenging times… Today let us take a look at how end-to-end procurement can change a company’s profit margins through a long-term strategic approach.
While most of the people in the Oil and Gas industry have been hit by the CoVID crisis, many have gotten the time to pay attention to what works for their industry. This pandemic has given us a chance to see what is absolutely necessary and what can be disposed off.
A necessary attention to the procurement plan of a project is extremely important. Here are the list of procurement strategies that are listed by a blog.
The supply chain comprises the flow of all information, products, materials, and funds between different stages of creating and selling a product to the end-user. The concept of the supply chain comes from an operational management perspective.
Every step in the process—including creating a good or service, manufacturing it, transporting it to a place of sale, and selling it—is part of a company’s supply chain.
The supply chain includes all functions involved in receiving and filling a customer request.
Supply chain management is an important process for most companies and involves many links at large corporations.
For this reason, supply chain management requires a lot of skill and expertise to maintain.
The oil and gas industry is driven by several challenges such as volatile gas and oil prices, extreme locations, marginal oil fields, as well as rapidly changing global fuel trends. Amid such challenges, it is becoming important for players in the oil and gas industry to build up effective procurement strategies.
Streamlined Process Management:
Inventory management coupled with demand forecasting is the backbone of supply chain strategy in the oil and gas industry. Thus, oil and gas businesses that have already adopted customized ERP systems are already realizing the benefits of the same.
Minimal Supply Chain Risks:
The oil and gas industry businesses always depend on various large and small suppliers to supply their services and products required for ongoing projects. It is a well-known fact that most of these relationships are not up to the mark, as a result the oil and gas companies register huge losses due to these suppliers.
Hence, to avoid losses and improving supplier relationship management, the companies should adopt a suitable supplier-benchmarking model. They need to analyze the performance of different contractors for various spend categories.
This is only possible when they build closer relationships with their suppliers. Combining their business strengths with the contractor will help them design progressive solutions, minimize supply chain risks, as well as stay ahead in the competition.
Achieving cost efficiency has become important for oil and gas companies. How is this manageable? This is where supply chain market intelligence may help. By adopting this end-to-end procurement strategy, oil and gas companies can easily make the right investment decisions.
Supply chain market intelligence will help them in acquiring and analyzing the future and present market trends, adopt profitable sourcing, and enable them to anticipate or track the changes in the marketplace before others do.
Thus, an effective supply chain market intelligence helps oil and gas companies to avoid bad investment decisions, and find innovative solutions to reduce operating costs.
While the above strategy helps Prismecs take on a role which is extremely essential. We also see that another article published in zycus.com mentions how agility in business is extremely important.
The Oil & Gas industry needs to maximize operational agility as well as supply-chain continuity and transparency. Rapid and comprehensive strategic sourcing, acquisition and management of market and business intelligence and collaboration, controls and compliance in ever-expanding global networks for third-party relationships will be crucial in exploiting new market and technological opportunities.
Abilities to plan and execute long-term spend strategies and to mine and draw sense from vast quantities of data using intelligent engines will be key differentiators enabling rapid adoption of key energy sector innovations.
Prismecs has cultivated a team with the varied experience needed to help E&P teams get the job done right. Not only this, our expert team can provide end-to-end procurement, which can play a key role in the execution of your project. There is no part too small or reservoir too complex for our energy product and supply chain specialists.
Our geoscientists and petroleum engineers deliver oilfield services, including specialty craft services, at the level that E&P operations demand. No matter which services our clients need, our goal is to optimize their efficiency, uptime and operational productivity.
From Angola to the Permian Basin, Prismecs is enabling smarter operations in every petroleum play. So trust Prismecs for all operations related to procurement today, to better your tomorrow!