You can’t afford inefficiencies in the oil and gas business. Amid price and demand volatility, not having real-time visibility and control on the supply chain can lead to wasteful spending and loss of productivity. How do you avoid this?
A new white paper from GEP and TechTarget — Fuel for Growth: Why Oil & Gas Companies Need Next-Gen Digital Supply Chains to Thrive — looks at the two key elements in modernizing the upstream supply chain ecosystem: data quality and data visibility.
And the most efficient way to achieve these is by tightly integrating supply chain and procurement under a unified data-driven software platform built on cloud delivery to quickly improve operations and margins.
This is a must-read paper for supply chain leaders in the oil and gas industry looking to save on spend and increase efficiency in their upstream operations.
Without trust in the data, usability is poor, and many potential technology innovations haven’t been fully adopted by end users to drive value for the enterprise. The chart below from GEP Analysis illustrates the poor levels of upstream adoption in many key areas.
Lack of trust in data quality and visibility is a huge problem in an industry as widely distributed and fast-moving as petroleum. It leads to hundreds of millions of dollars in wasteful spending every year and ineffective working capital management. Given today’s market conditions and shrinking margins, vendors can ill afford that level of waste and inefficiency.
Plugging in point solutions to existing infrastructure may address individual problems but leaves the overall supply chain siloed and fragmented. With a stopgap approach, oil and gas companies can’t come close to optimizing their operations or their investments in digital technologies.
The situation will continue to devolve if challenges are not addressed quickly, particularly with the growth of mobility, the Internet of Things, big data analytics, machine learning and other potentially disruptive technology innovations.
There has to be a better way, and there is.
By moving to a modern, data-driven solution built on integrated software and cloud delivery, oil and gas companies can tightly integrate supply chain and procurement management under a single platform to maximize revenue, minimize risk and optimize productivity.
With the right solution, the supply chain can leverage accurate, real-time data, tight integration and unprecedented visibility to resolve key issues across operations, material fulfillment, inventory and margins.
If the goal is to keep pumping money out of the ground, oil and gas companies have important obstacles to overcome, namely:
Moving to a modern, data-driven, integrated supply chain and procurement platform can resolve these issues. With the right solution, oil and gas companies can address critical challenges in the following areas:
The only way to truly achieve these benefits is to deploy a platform that enables you to overcome the existing challenges of data quality and visibility. Overall, the solution should enable you to achieve enterprise-wide supply chain and procurement capabilities across three main areas:
Today’s reality is that very few solutions can give you this level of data quality, visibility and integration across your entire supply chain and procurement ecosystem.
Many legacy ERP vendors have installed bases to protect and have been slow to move to the cloud. They also benefit by having closed platforms that don’t easily integrate across the broad spectrum required of today’s broad, diverse and digital petroleum supply chains.
When evaluating potential solutions, start with a platform that is open, data driven and cloud enabled. Also look for a solution that allows you to migrate at your own pace, leveraging existing investments without having to rip and replace what you already have in place.
Key capabilities to demand are:
When it comes to digital supply chain modernization, GEP is the provider that truly understands the challenges facing oil and gas companies in their supply chains and that offers a next-generation, integrated, data-driven path forward for all companies across the petroleum industry.
GEP NEXXE, a unified and comprehensive supply chain platform, is built on a foundation of big data and leverages machine learning at its core. GEP NEXXE is designed for ease of integration and ease of incremental adoption, allowing petroleum companies to streamline their technology portfolio without risking existing operations.
For more information on how your organization can modernize its supply chain to “keep pumping more money out of the ground,” please visit GEP to learn more about our comprehensive solutions for the oil and gas industry.