Procurement Needs for the Oil & Gas Industry

Aug 18, 2022

The Importance of Oil and Gas Procurement

As an industry, supplying oil and gas is often impacted by external challenges. These can include the volatility of prices for oil and gas as they are driven up or down by global events such as war, the far-flung locations which need to be explored and developed to ensure a steady and secure supply, and the shifts which can sometimes occur in wider trends, such as the gradual switch to renewables. Challenges such as these make it vitally important that companies focus on oil and gas supply chain and procurement issues, these being the parts of the overall picture they can truly control. Oil and Gas Procurement

Oil and Gas Procurement Strategies You Need to Adopt

Oil and gas procurement companies such as Refteck Solutions can help to introduce the kind of oil and gas procurement strategies that will help your business to operate efficiently in an environment as difficult as this. It’s all about creating a procurement process in the oil and gas industry that helps to achieve efficient spending in the shorter term and more focused investment over the longer term. Not only will this enable your particular oil and gas business to operate more efficiently, but it will also mean that you can gain a competitive advantage against other oil and gas companies which haven’t placed the same focus on introducing procurement strategies. Oil and Gas Procurement Services

Oil and Gas Supply Chain Management Processes

Procurement systems can be introduced across your business in order to streamline the processes on which you depend. It’s easy to take an overview of the oil and gas industry and decide that the processes which matter the most are those which pertain to drilling and processing, and which utilise the latest in oil and gas technology to more efficiently extract fuel from the ground.

An overview, however, particularly one which encompasses procurement, will take on board aspects such as Enterprise Resource Planning (ERP). ERP is an approach which integrates systems across a business, and oil and gas procurement strategies will help in this aim by taking different parts of the process out of silo and building a co-ordinated approach. This co-ordination will cover processes such as inventory management, demand forecasting and contractor management. By bringing the processes into close alignment, a gas and oil procurement plan will create supply chain solutions which are robust and long-term. Oil and Gas Procurement Strategies

The Supply Chain and Procurement Strategy

No matter how self-reliant a gas and oil company is in terms of its own operations, it will always rely on a multitude of suppliers to furnish the components and services to make sure those operations run smoothly. If even one of these relationships with a supplier runs into difficulties it can throw the whole of the operations of a company off course, and if multiple failings occur through the duration of a project the losses incurred by a gas and oil company can be serious.

An overarching oil and gas procurement strategy will include the creation of a benchmarking model for all suppliers. This will mean that every supplier is analysed across a range of benchmarks depending upon the price point they occupy. In this way, the risk of using a cheaper, less reliable supplier could be measured against the initial expense but greater long-term stability of using a supplier with higher completion rates but more robust systems. A benchmarking system of this kind will only work if close relationships exist between your company and every supplier, and that’s easier to do with the help of expert oil and gas procurement companies. Working with a specialist procurement company will deliver the following:

• Effective Short-Term Spending

• Focused Long-Term Investment

• More Efficient Processes

• Joined up Working Between the Different Departments in Your Company

• A More Robust Supply Chain

• Cost Savings

• Greater Efficiency through Any Given Project

    For those who specialise in procurement in the oil and gas companies, the creation of good relationships with suppliers, and the ability to analyse the performance of these suppliers is at the heart of what they do. Contact us today to learn how our solutions will transform your business from the start.

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