Supply Chain and Procurement Strategies for Oil and Gas Industry

Aug 22, 2022

Oil and Gas Procurement Strategies

Getting oil and gas procurement right is more important than it’s ever been, as global volatility places unforseen pressures on the cost of extracting and shipping oil and gas and the price achieved when selling. Oil and gas procurement services can play a huge role in cutting costs through a process of enhanced efficiencies. Procurement strategies in supply chain management focus on pulling all parts of the supply chain together under a centralised control system. In this way components and services from a range of suppliers can be tracked on overview rather than being ordered in silo and passed along the supply chain within the business.

Supply Chain Strategic Planning

The effective delivery of strategic sourcing in supply chain management depends on ending the fragmentation of the supplier base, and ensuring that each supplier is equally reliable. of the same standard when it comes to reliability. The oil and gas sector relies, to a greater degree than most other sectors, on a complicated range of suppliers, and the whole procurement system is only ever as strong as the weakest link. Supply Chain and Procurement Strategies In other words, there’s no overall benefit to your biggest supplier being extremely efficient and reliable if another much smaller supplier is prone to letting you down. The lack of quality from the smaller supplier is likely to cause as much disruption as it would in a larger supplier, in as much as any break in the supply chain can bring procurement grinding to a halt. The old cliché about a chain only being as strong as its weakest link has become a cliché because it contains a large element of truth, and a supply chain sourcing strategy will ensure that every link in the chain is as strong as every other.

Developing A Supply Chain Strategy

One of the ways of securing value across the supply chain is to look for suppliers offering a range of components and services. Integrating suppliers in this way opens up economies of scale, as a single supplier can be tasked with supplying an extremely wide range of items across an entire project. A company which specialises in oil and gas procurement strategies can achieve the same kind of results while working with multiple suppliers, thanks to the fact that the suppliers in question are all being accessed via the procurement company. In this way the supply chain for an oil and gas company is hugely simplified, with just the one point of contact, and one communications cannel for everything from invoices and orders to enquiries, complaints and payments.

The advantages of working with an oil and gas procurement specialist include:

• Strengthened Supply Chain

• Concentration on Reliable Suppliers Offering Value

• Centralised Control of Supplies Across a Project or Multiple Projects

• Long Term Relationships with Suppliers

• One Point of Contact for All Procurement Issues

A Balanced and Strategic Approach to Procurement, Combining Short Term Value with Long Term Stability

Procurement in Oil and Gas Industry

Why Choose Refteck Solutions for Oil and Gas Procurement and Supply Chain Management

A company which specialises in oil and gas procurement strategies like Refteck Solutions can make a promise like that because procurement is at the heart of everything we do. We develop long term relationships with the kind of supplier’s oil and gas companies rely upon, and use those relationships to engage in in-depth analysis.

The result of that analysis is a profile of the strengths and weaknesses of each supplier, paying particular regard to the price point that supplier is hitting. By balancing short term budgetary demands (i.e. wanting the best price here and now) with longer term strategic planning (i.e. delivering projects with maximum efficiency) we can select suppliers perfectly suited to the company, the individual project, and the wider market conditions at the time.

Contact us today to learn how our strategies will transform your business from the start.

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