|Date Published||December 23, 2016|
|Article Author||Dave O’Connor|
|Article Type||December 2016 Issue|
|Category||Articles, Oilfield HUB|
|Tags||E&P, FCM - Field Cost Manager, ORM - Operations Report Manager, PVM-Preferred Vendor Manager, S&S, SCM-Supply Chain Manager, The HUB Online Community|
Industry statistics tell us most projects come in over budget for a myriad of reasons of course, but supply issues leading to expanded AFE allocations are as legendary as those early wildcatter’s. Why?
When we meet with operating companies about how they manage their supply chain, we get a wide-ranging response about how the process works from company to company. We hear every thing from sophisticated enterprise management platforms to, “I send out an email to my Rolodex of service companies I have used
for many years and have a great relationship with, for each well we drill,” are being used depending on the size of the company. But, the interesting thing is all companies, from micro juniors to majors, have told us they are having issues and need help getting things more organized, verifiable, and audit proof.
At Oilfield HUB, we believe there is hidden money to be realized in the process of selecting the right vendor for the right job at the best possible price. How you ask? By tightening up the way you source, bid, and select a vendor then rate them according to their performance on the project they were chosen to work on. If you can track your performance metrics and understand trends, you can perform more efficiently in the long run.