Supply Chain Management for Oil & Gas

Avetta enables oil & gas companies to source Suppliers/Contractors, which helps to protect the corporate reputation and promotes expansion into new regions.

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Importance of Supply Chain Management in the Oil & Gas Industry

Supply Chain in the oil & gas industry has a long history of regulatory oversight, reputation issues, price fluctuation, and a heavy reliance on contractors and suppliers. As the percentage of suppliers in the workforce continues to grow, finding qualified workers is increasingly difficult. Avetta enables oil & gas companies to source safe workers, which helps to protect the corporate reputation and promotes expansion into new regions. Better supply chain management can help to improve the oil and gas industry because each company is linked globally to its upstream suppliers and downstream distributors through the flow of materials, information, and capital.

expand your supply chain with safe, qualified contractors

Expand your Supply Chain with Safe, Qualified Contractors

As the oil & gas industry continues to grow so does the demand for skilled workers. However, the supply of qualified employees is limited and as employees retire or leave their company, they are often replaced by contractors, who make up a large and growing percentage of the workforce. Contractors can be a practical and economical solution to labor shortages but also bring increased risk to the supply chain in the oil and gas industry if they are not sufficiently qualified for the job. Companies must take steps to ensure that all employees and contractors have the necessary skills, are licensed and insured (where appropriate) and abide by safety requirements.

Avetta helps reduce risk by providing greater visibility of contractor capabilities, enabling better selection of competent and suitable suppliers.

reputation and profitability

Protecting Reputation & Profitability

In a high-risk industry like oil and gas, protection of human life is always the highest priority. Organizations must also strive to avoid fines for accidents and safety violations and guard carefully against incidents that could impact their reputation. As past oil spills have demonstrated, media coverage of an accident can severely damage a company’s brand, which directly impacts profitability and can even threaten long-term viability. Even when the incident was caused by a contractor, it’s the hiring company that pays the price. Managing risk in the supply chain is therefore critical to a company’s brand, reputation and sustainable future.

Avetta works with oil and gas companies to ensure contractors align with company standards and goals in areas such health & safety, PSM, insurance, cost and other criteria. By increasing visibility in the contractor selection process we enable more informed decisions and reduce risk in the supply chain.

make data your competitive advantage

Make your Data a Competitive Advantage

The “Big Data” revolution is changing the way organizations make decisions, improving their chance of success by providing higher quality, more accurate information and analysis. Process automation and advancements in hardware are powering greater efficiency in the supply chain. However, for oil and gas, the sheer amount of data that must be collected and managed is a barrier for many organizations who do not have the resources or systems in place to support a data-driven strategy.

Avetta’s supply chain management software alleviates these challenges by providing contractor prequalification, document management, auditing, employee-level qualification and training, insurance verification and business intelligence.

planning for price fluctuations

Planning for Price Fluctuations

Volatility in the price of oil presents a constant challenge for companies in the oil and gas industry. When margins become tight, organizations must adapt to maintain profitability. For oil & gas, this could mean running units longer, striving to get the maximum productivity from processing equipment; but these strategies can often lead to increased risks and hazardous situations.

Avetta’s supply chain management solutions offer oil & gas companies the opportunity to work more efficiently and reduce the cost of contractor/supplier management—while improving safety and controlling risk.

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