January 19, 2022
2022 is the Year of Asset Visibility
We’re now starting the third year of what we call the decade of supply chain. In our road map to digital transformation, we talk about how fundamental asset visibility is to profitability, circularity, and to using additional technologies like machine learning.
But what does asset visibility really mean?
In the oilfield, it means upholding joint venture agreements, being SOX compliant, and keeping your rigs turning right. It’s part of being a prudent operator, and something most operators think they do very well. And they do.
At Requis, we have a unique perspective, forged from working with clients of all sizes, in all parts of the oilfield value chain, and though each of our asset dispositions is one of a kind, there are themes that emerge.
For example, we often hear from tier one operators that capitalized and expensed materials are harder to keep track of, because they are no longer tracked in SAP due to COPAS guidelines in North America. From smaller operators, we often hear that inventories are kept on spreadsheets on individual hard drives. In either case, how do you prevent purchasing materials you already have? That sounds easy enough, right? But it’s not.
As we all know, the supply chain world is changing. Appetites for greener solutions are whetted, reduction of waste is at the top of everyone’s mind and the circular economy is on the lips of the masses.
So where to start?
Get a Good Sense of What You Already Have and Use That First!
Our asset disposition team is a group of highly experienced reverse supply chain individuals. Hailing from various corners of the oil patch, our team is comprised of former tier one operator strategists, practitioners, and consultants, and we’ve seen it all.
We’ve worked with our tech team to build out tools we wish we had previously, that free data from spreadsheets and breathe life into dull descriptions, making shopping from your own pantry a bit more like the consumer experience we’ve all come to expect. Pictures, descriptions, MTRs, etc. — these are the details larger operators need to facilitate redeployments, and smaller ones need to simply keep track of what they have.
It’s not an accounting system or an ERP to rival SAP, but rather, it supplements what you already have in place, helping users make better use of their tools. What to plug into SAP to handle financial transfers across regions? If you can dream it, we can build it. We’re a tech company!
How Do We Start? How Do We Build on What We Started?
You may be thinking we’ve been disposing of assets as part of our inventory management process for years. Good on ya! For others, getting started is daunting. We can partner with you and develop tools tailored to your specific place in the journey. But from a birds’ eye view, here it is:
- Optimize inventory: You may already have a plan in place, a regular review of min-max levels, standardized materials, and so on. We can jump in wherever suits. If not, we can help you analyze your data and develop a strategy.
- Redeploy: Many tier-one operators already have a culture that supports redeployment. But we often hear that it only works well when one region is in a bind, and another has a surplus. We can help facilitate shopping out of your own inventories as the very first step of your sourcing strategy. Using our private marketplace, you can build a culture of buying internally first.
- Recirculate: And finally, if there is no planned use and no other part of your company needs it, it’s time to put the material through the disposition process. We can help you sell to other operators through our operator forum, sell on the open market, or recycle through our Requis scrap solutions.
Over 2022, look for a series of articles that dive into various topics around investment recovery. As part of our further discussion, we plan to address these topics:
- Challenges in data standardization.
- How COVID disruptions have changed the investment recovery playbook.
- The benefits of selling assets from operator to operator.
Additionally, our Procurement pillar is growing! Of particular use to smaller operators, our platform has over 5,500 registered suppliers and a level of engagement that is sure to suit your needs. If you’re operating your sourcing events out of Outlook and Excel, let us help you tap into our directories, revamp, and realize cost saving efficiencies.
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