For years the oil and gas supply chain has been navigating a complex system of manual and lengthy processes. Procurement can be slow, often with long lead times. There is little industry collaboration and poor management of asset data and information, and cash is being held in redundant or surplus material.
But over the course of the next few years, this will rapidly change. As oil and gas operators seek to improve their capital efficiency, a wave of innovation and technologies such as the cloud, the Internet of Things, blockchain, augmented reality and others, will come together to create a highly efficient, more connected and transparent supply chain.
What’s more, technology innovations that were once focused on the individual consumer will start to shift to the enterprise, putting the enterprise supply chain in the spotlight.
Why the time is right for enterprise supply chain digitisation
Global aggregated business-to-business supply chain’s procurement activity is estimated at greater than $12 trillion dollars per year. If enterprises simply move this activity online and improve cost and time by 10 per cent, we could see up to $1.2 trillion dollars in savings.
The energy sector alone accounts for nearly 10-15 per cent of that aggregate activity, with annual procurement levels exceeding $1.8 trillion per year. The ability to easily dispose of these assets when an organisation is finished with them could give back more than 20 per cent, recouping almost $360 million. What’s more, by digitising the supply chain and moving it online, oil and gas operators can improve their overall supply chain performance in both time, scheduling, and cost by approximately 20 to 40 per cent.
While procurement is usually where organisations focus first, the real supply chain opportunity is in a more actively-managed disposition program, generating ‘free cash’ through the selling of surplus material and equipment; for every asset dollar spent, the operator could expect between five to 25 per cent of their money back by reselling excess material or equipment through an online e-commerce platform such as Amazon or eBay but tailored for the enterprise. And by digitising the supply chain organisations can centralise all their supply chain data on one platform, bringing more transparency, simplicity and ultimately, innovation to their organisations.
As more organisations start to digitise their supply chains, it will also create more data to encourage others to do the same. Imagine if you could access all the procurement, operations and disposition data that is associated with an asset through one platform. The insight and opportunity for efficiency and automation are undeniable.
Your online supply chain and commerce platform
Inspired by online consumer retail platforms, Worley and the founding team of Requis set out to make the enterprise supply chain more efficient by creating an online marketplace for the oil and gas industry. Fast-forward three years and you have a supply chain and commerce platform built for supply chain professionals to procure, manage, and sell industrial material and equipment.
Like eBay revolutionised the consumer supply chain by connecting consumers with other consumers, Requis is set to change the face and pace of oil and gas procurement as different industries can collaborate in new ways.
By bringing oil and gas buyers and sellers together, Requis helps to breaks silos between industries and enables people to work collaboratively instead of side by side.
Sharing inventory on Requis would allow upstream oil and gas companies to connect to downstream or petrochemical companies who they wouldn’t normally interact with. The platform could also enable utility providers to share resources and critical parts in a transparent and traceable way based on their regions. And we’re pleased to report that it does exactly that.
The platform also empowers buyers with superior datasets and transparent pricing and allows sellers to sell excess materials with minimal risk, as opposed to scrapping or storing them.
Through enhanced visibility, increased recovery and intelligent re-use of materials, supply chain professionals can now achieve higher cash flow and make smarter decisions with Requis. It’s time to change the oil and gas supply chain’s perception from operators and a cost centre to innovators and a profit centre.
So, go ahead and pull the largest lever in your business to pull – join us in revolutionising the enterprise supply chain. For more information visit requis.com.
Renowned for its quality, breadth and expertise, the Gastech Conference is one not to be missed! Register now to hear the exclusive insights from the world-class leaders.
Image courtesy of Requis
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.