Supply Chain Analysis Helps an Oil and Gas Industry Client Streamline the Procure to Pay Process
The recent drop in the pricing of oil is pushing firms to compromise on operational costs to sustain their foothold in the oil and gas market landscape. Additionally, with the recent fluctuations in crude oil prices, firms operating in the oil and gas industry space have been compelled to reduce investments and start relying on supply chain analysis studies to cover fixed costs. Moreover, the ever-increasing competition in the oil and gas industry space is forcing players to improve their existing business models, improve automation, and maximize cost savings across their sourcing and procurement processes. Supply chain analysis assists firms operating in the oil and gas space to devise best-in-class and cost-effective product and service offerings to the customers and help them boost their overall profitability and capability over their competitors.
With over 13 years of experience in offering a wide array of supply chain solutions, SpendEdge helps establishments in the oil and gas industry space to establish an end-to-end follow-up procedure to resolve the discrepancy, define freight discrepancy codes, and maintain freight discrepancy logs across business units.
The Procurement Pain Point and Insights Offered
A leading oil and gas industry client with offices spread across various geographical locations was facing predicaments in clearing a massive backlog of unplaced requisitions, historical data issues, and unplanned cycled requisitions. Additionally, with their current processes in place, the client experienced an increase in purchase order (PO) delinquency which resulted in increased costs, work delays, and long cycle timeframes. They also suffered from late payments, old invoices, and a complicated invoice discrepancy resolution process.
To help the oil and gas industry client overcome their predicaments, SpendEdge tailored an extensive market research approach that included primary and secondary research coupled with qualitative and quantitative data collection procedures.
During the course of this supply chain analysis engagement, the oil and gas industry client was able to redesign their procure to pay process by aligning experienced resources to shorten the requisition to PO cycle time and clear the backlog in PO creation. Additionally, the client defined invoice processing steps per industry practice and initiated a daily goods receipt report to identify discrepant invoices.
Fundamental questions answered in this supply chain analysis engagement include
The supply chain analysis engagement helped the oil and gas industry client reduce delinquency in supplier orders. This helped them save of over $77K in a span of six months. Additionally, the client cleared over $42M/year worth of discrepancies.