Oil and gas companies are no strangers to innovation—thanks to the need to stay competitive, profitable, and prepared. There have been huge advancements in the techniques and technology created to help get resources out of the ground. While this is a vital part of being competitive and successful, a place that O&G has historically failed to innovate is in the back office.
Back office tasks take a back seat when it comes to innovation, but this shouldn’t be the case. Managing job sites, sourcing equipment, and vendor management are all aspects that can directly affect how smoothly a site runs and the bottom line.
Until recently, the technology built for the back office hadn’t innovated much since its creation in the early 2000s. But a new movement in industrial technology is innovating the way back office work gets done, and it’s solving the problems that have plagued the industry for decades.
So let’s take a look at how this new wave of technology is making vendor management easier than ever before.
How Vendor Management Technology Save Time and Money
Vendor management is a back office responsibility that is crucial to the success of your site. And even though this task is extremely important, it’s usually facilitated through various scattered spreadsheets or clunky, hard-to-use software solutions. By implementing technology that is convenient and easy to use, you’ll see the following benefits:
Centralized Vendor Information
When technology is introduced to vendor management, it gives you an easy way of keeping the most important information in one centralized place. Instead of searching through spreadsheets for a specific vendor, you can find the right contact for the exact equipment or services you need immediately.
Centralized vendor information also helps you identify opportunities within your current network. For example, your site needs light towers and an excavator. Looking through your vendor network, you notice that one of your excavator vendors also supplies light towers, so you can get a quote for everything you need just from one vendor. By consolidating vendors, you can save on delivery fees and cut down the time spent on procurement.
Furthermore, centralized vendor information also allows you to track your quote history, which helps you get the best prices, identify trends, and compare vendors for future use.
Manage and Utilize Approved Vendor List
Through vendor management technology, you can curate and manage your approved or preferred vendor list with ease. This helps you enforce existing MSA and safety requirements across your operations. The management of and access to this information helps connect the back office and field, helping you establish and maintain accountability and consistency across all your sites.
Now Is the Time to Improve Vendor Management
While innovative technology has been embraced in other aspects of oil and gas operations, back office technology has been slow to catch up. But we are at the start of a new wave of technology, spurred on by Industry 4.0, that allows O&G companies to automate tedious back office tasks, better access their data, improve the decision making process, and so much more.
By implementing vendor management technology, you can easily manage your vendors in one place. And go beyond that by curating your approved and preferred vendor list to ensure only the best vendors that meet your requirements are hired. It is time to step beyond spreadsheets and scattered vendor information and into a process that is easy-to-use and effective.
Want to learn more about how vendor management technology can help your company? We’d love to chat with you!