For any energy and mining company, the services provided by an E&P supply chain can be critical to their business success. Below we’ll take a look at the role that the E&P supply chain plays in an oil & gas company and why it’s so important to have good supply chain management from the get-go? Let’s start there…

9 Ways How Does E&P Supply Chain Help The Oil And Gas Industry

E&P supply chain provides a significant amount of efficiency to the Oil and Gas industry. They provide services like inventory management, order management, production control, and delivery schedule that saves a lot of time and reduces cost. The entire process of material flow is handled through the E&P supply chain by making use of the just-in-time method to ensure smooth production with optimized resource utilization.

Not only is the E&P supply chain beneficial for the oil and gas industry but also it helps them to save time and reduce overall costs as well as operating costs which ultimately increases the bottom line profits of an oil or gas company. Here are 9 ways how does E&P supply chain helps oil & gas companies!

Sourcing & Procurement

Source and procure materials and products for the oil and gas industry. E&P supply chain services help oil and gas companies identify:

  • Which materials are needed?
  • How much they should cost?
  • How long they will last?
  • Where they are being manufactured?
  • What the company is paying (or to whom)?

These services also determine if the materials or products deliver on time by following various procedures established by the E&P supply chain.

Additionally, many E&P supply chain services aim to help clients determine whether their suppliers are manufacturing according to schedule or properly following safety procedures set forth by the E&P supply chain.

Transportation, Warehousing & Distribution

For oil and gas companies, moving crude from where it is found to a refinery or port terminal can be as challenging as bringing it to market once it’s refined. Let us help you develop an efficient transportation strategy that minimizes risk and mitigates costs.

When you rely on Prismecs supply chain services, we’ll handle every step along with your distribution network, allowing you to focus on increasing production capacity and maintaining healthy margins.


It’s also an E&P supply chain company’s job to manage warehousing operations, which involves storing inventory until it can be shipped out again. This includes ensuring that products are stored properly and that they don’t get damaged while sitting on shelves or in storage facilities.

Inbound Logistics

Inbound Logistics is responsible for managing product as it moves from suppliers to customers, including everything along the way.  The goal is to ensure that products are delivered when and where they’re needed with minimal damage or loss.

Inventory Management

An inventory system allows you to monitor your physical supplies to ensure you never run out. To do so, organizations employ inventory managers who use a range of tools—including barcode scanners and WMS systems—to monitor their stores. This also helps them avoid overstocking or wasting money on excess inventory.

Inventory Optimization

Inventory is usually one of an oil company’s biggest assets. It’s also its most flexible resource, which means it can be used strategically to fulfil shifting demand across a wide range of price points. That being said, you want to make sure that your inventory is moving; otherwise, you risk tying up too much capital while simultaneously risking loss due to spoilage or theft.

Outbound Logistics

When you’re running a large-scale operation, it’s hard to manage everything, including supply chain management. If you’re unable to keep track of all your materials, then your business won’t be able to function properly. This is where outbound logistics come into play. Outbound logistics will ensure that your company can have a constant flow of materials on time without issue or complication.

Planning, Scheduling & Execution

E&P supply chain services help the oil and gas industry manage the movement and storage of raw materials, as well as serve as a go-between for suppliers and end-users. The basic supply chain process has four steps:

  1. Demand analysis
  2. Planning
  3. Scheduling
  4. Execution

There are a lot of factors that need to be taken into account when performing these steps, especially if you’re working with a company that has multiple sites around the world.

Pricing Models

As a company, you need to think about pricing strategies that work for your industry. It can be difficult to assess which pricing models will be most beneficial for your company, especially since there are so many strategies to choose from. But here at Prismecs, you will get exclusive pricing models according to your requirements.

Risk Management

You should consider risk management when establishing your supply chain. With so many moving parts, it is easy for unexpected problems to arise. But, with proper planning and coordination, you can work to eliminate as much risk as possible. This can help you protect against economic challenges by ensuring you have a solid plan for all contingencies that may arise.

Prismecs E&P Supply Chain Services:

Prismecs E&P Supply Chain Services are designed to ensure the integrity, longevity and profitability of everyone. Our  E&P Supply Chain experts have a proven track record for supporting exploration and manufacturing even in the harshest operating environments. So, get your E&P supply chain solution today by calling at 1 888 7747632!

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