Supply Chain Management and Strategic Sourcing for the Oil & Gas Industry
Contribution by Sonia Kallat – Associate Manager at Bristlecone
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 is 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.
[blockquote style=”1″]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 optimizes the diverse business environment, and bring the stake holders onto a common taxonomy and an integrated management system.[/blockquote]
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.