Vendor management is a vital part of running on-budget, on schedule, and successful projects. By implementing an effective and efficient vendor management process, you will have a better procurement process, prevent vendor fraud, improve your operations, and create better visibility. Companies that take the time to tap into the power of proper vendor management will see the benefits in their supply chain operations and bottom line.
Optimized Vendor Lists Means Better Procurement
When your vendor lists are scattered across spreadsheets or on paper, it slows down the procurement process and leaves room for inefficiencies. When a vendor management process is put in place that allows you to centralize information and track vendor activity and history, it revolutionizes the procurement process.
With proper vendor management and an optimized vendor list, you can move through your procurement process with ease and spot opportunities for optimization. For example, you have your project planned and know exactly what equipment, goods, and services are needed to execute your plan. Typically, you would have to sift through your vendors, track down that one vendor for that one piece of equipment, then repeat the process for each item you need. But with a centralized and easy-to-use vendor management system, you can solve this tedious and time-consuming process.
Preventing Vendor Fraud
Vendor management has the power to help oil and gas companies prevent vendor fraud. By creating a process that helps track vendors and establishes an airtight operations process, you can prevent dishonest oil and gas vendors from taking advantage of weak points.
When vendor fraud happens, it hurts your company’s operations and drilling costs, can cause lower quality work, increase financial risks, and create conflicts of interest within your company. When a vendor is hired because of employee manipulation, it means that your project is not getting the best possible vendor for the job. Plus, a vendor who is willing to engage in this behavior could mean they have deeper problems that could put your site and project in jeopardy.
This is where vendor management is a critical part of preventing fraud. Creating a vendor management process that allows you to easily manage vendors and access previous job quotes and prices will help you spot fraud attempts. Not to mention that when airtight processes are put in place, it naturally creates accountability within your company and takes away the possible fraud opportunities.
Better Visibility, Tracking, And Spending
Lack of visibility into operations is something that has plagued the oil and gas industry for decades. The absence of visibility is what causes revenue leakages, inefficiencies, and mistakes to occur. But as better industrial technology is created, we are seeing oil and gas companies gain more visibility into their operations than ever before. Implementing industrial technology to your vendor management approach will give you the visibility needed to truly analyze your vendors, see spend across your site, know what assets and vendors are being used where, and so much more.
Your Operations: Now In Full View
Oil and gas vendor management is an important part of successful project and job site management. When technology can combine vendor management, project planning, and procurement, you can take your oil and gas supply chain management to the next level.
FieldEye is a single platform that gives you visibility into your rental spend, simplifies vendor management, and streamlines the request for quote process all in one place. Through our platform, you can plan and manage equipment, services, and more across projects, know which vendors are being used where, and see spend across all of your job sites. While managing a company-approved vendor list, centralizing your vendor information, activity history, AND submit RFQs in a few clicks.
If you are ready to see how FieldEye can help you tap into the benefits of streamlined vendor management and procurement processes, we would love to chat with you.