Oil & Gas Closing the Gap with Standardization and Visibility

    Jun 8, 2018 11:08:38 AM / by Adrienne Watts

    Facing low prices of crude oil, companies need to reshape supply chains to get sustainable cost reductions and reach profitability in the mid and long term. End to end visibility in upstream, midstream, or downstream portions of the business substantially reduces inefficiencies, driving competitive advantages and bringing you closer to achieving your strategic goals.

    Oil & Gas Closing the Gap with Standardization and Visibility

    Haunted by the Past

    In the 1990's oil and gas companies shifted from in-house to outsourcing non-core activities. This resulted in a complex supply chain structure and a loss of control over activities assigned to external parties. Supply chain data became obsolete lacking standardization and bench marking. The gap in this information created low visibility over the supply chain activities.

    How Can You Fix the Gaps?

    Implementing a 4PL control tower concept can present a solution to the data dissemination, lack of visibility and poor unified planning. Outsourcing supply chain activities can provide visibility, coordination and control of material planning, storage and physical distribution of materials and equipment. This provides collaborative planning with real-time order tracking and reporting across multiple vendors and suppliers.

    The Facts

    Full visibility over your supply chain (from suppliers of suppliers to clients of clients) has progressed from the 6th supply chain strategic priority in 2015 to the 3rd position in 2017, but only 6% of firms have reached this target. To cope with the complexity of their oil and gas supply chain, companies share an ambition to increase end-to-end visibility. 

    The Benefit

    Full visibility of the supply chain incorporates a wide range of flows throughout both the entire supply and value chains. In addition, real-time monitoring has become a crucial asset in achieving this visibility. Overall, improving end-to-end visibility enables complexity in the supply chain to be tackled and leads to closer collaboration with partners, a reduction in disputes, better risk anticipation, enhanced flexibility, an extended degree of the control over processes, elevated customer satisfaction and higher profitability.

    GEODIS manages some of the most advanced upstream and inbound visibility control tower activities.

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    Topics: Center of Excellence, Control tower, Visibility, Supply Chain Solutions, 4PL, Supply Chain Optimization, Cost Savings, Oil & Gas / Oil & Energy

    Adrienne Watts

    Written by Adrienne Watts

    Adrienne is a Communications Specialist at GEODIS. She joined GEODIS 3 years ago with a degree in Public Relations and a minor in Journalism. Sharing her love of writing and knowledge within the industry to start blogging some of today's hot topics.