Now is the time to consider inefficiencies in transportation, rig movements, logistics, and your supply chain as a whole for the oil and gas industry.
1 – You can’t do it alone! Create a strategic partnership for supply chain
With the scale and complexity of the oil and gas supply chain, your first step should be to find a strategic partner with the expertise to help you tackle your transformation from start to finish.
“After COVID-19, it has become clear that companies need value co-creation to optimize their supply chains.”Firas Shnoudeh, Global Segment Head for Oil and Gas at Aramex.
The real benefit of having a strategic partner is easily pinpointed by its collaborative nature. A strategic partner can help throughout the process, diagnosing issues in the current model, helping to redesign it with specific objectives in mind, and following through with implementation. This removes doubt from the equation, and with a logistics expert as a partner, can give companies the confidence to make the necessary changes instead of wondering where to begin or spending money on initiatives that ultimately do not improve operations.
2 – Use your partner’s expertise to transport more efficiently in the supply chain
After finding the right strategic partner, use their industry expertise and knowledge to improve your transportation operations.
Just as an experienced partner can diagnose issues and plan tailored solutions across the supply chain, they can focus in on transportation to optimize performance across metrics.
Some key points to tackle include assessing transportation as a whole to improve the fleet and provide cost savings, considering vendor price management, and implementing smart technologies to leverage its potential to create a data-driven operation which eliminates waste and improves efficiency.
3 – Take a data-driven approach to make the right decisions at the right time for every stage of the supply chain
Consider the potential for digital technology in your supply chain operations—with increased visibility and data to quantify your performance, making informed decisions to optimize workflow becomes much simpler.
For example, Shnoudeh says that using the right digital tools would allow a customer to calculate truck utilization and efficiency, which could lead to cost savings.
“Instead of having a fleet of 300 trucks, with the insight that data analytics provides, you might find that you actually only need 200 trucks, eliminating a major fixed cost impact.”Firas Shnoudeh, Global Segment Head for Oil and Gas at Aramex.
Making data-driven decisions is one of the keys to eliminating waste and using actionable insight to improve your business.
4 – Delete silos and create integrated logistics services for every part of the supply chain
The key word here is “integrated”. Digital solutions only go so far on their own, but when silos are eliminated and companies work on innovative solutions to synergize their logistics operations, they truly unlock the potential of technologies like the Internet of Things, artificial intelligence, machine learning, and big data.
“Data has always been a part of the oil and gas sector, but it wasn’t a major pillar for the industry. Going forward, there is a very real need for big data and technology. It is the key to drive logistics, products, and purchasing operations more efficiently.”Firas Shnoudeh, Global Segment Head for Oil and Gas at Aramex.
This is also where a strategic partnership can help you reap benefits—these solutions can be complicated to implement and maintain without guidance.
5 – Work with an industry expert to move and manage rigs quickly and safely
The oil and gas industry has massive assets, which can complicate movement and maintenance. With a dedicated partner, you can ensure that your heavy assets are secure—partner with a company that is equipped to handle the full process with end-to-end support for rig mobilization, maintenance and management to simplify your workflow.
A strategic partner should be able to support with onsite inspection of rigs, a full and clear mobilization plan with a thorough understanding of HSE requirements and industry expertise that takes into consideration the time-critical nature of the oil and gas sector.
6 – Get double or triple the value by sharing assets
Oil and gas companies need to take every possible advantage during uncertain times, and the geography of the Gulf presents a major advantage. Because GCC nations are so close to one another, and movement is relatively easy, it makes sense to share assets across borders instead of wasting money to buy assets in each country.
As an example, Shnoudeh says that companies could use trucks within a network, sharing assets across country borders. For B2B operations, this could also mean renting out assets when they are not in use, creating another source of revenue while fully utilizing available equipment.
7 – Move faster and save money with expediting solutions
Time is money, and no one can afford to waste either of those resources in this market landscape. With expediting solutions, making sure your assets get to the right place at the right time is much easier. Once again, this is where a strategic partner can provide assistance without adding more to your plate, since they are designed for this purpose.
The right partner could reduce clearance time, for example by using a deep and thorough assessment on the bank guarantee time involved during the clearance process. With an expert by your side, you could also optimize the total transit time and production process by analyzing freight selection based on both urgency and cost.
After the major oil market turbulence following the COVID-19 pandemic, every company in the sector has had to rebuild and reinvent themselves. This is the perfect time to rebuild your supply chain operations to ensure that they are more efficient, they save money and time, and they leverage the full potential of your assets.