5 Ways Oilfield Services Companies Can Leverage Advanced Technology
Posted by John Goode, Senior Director, Channel Marketing
Technology like NXTurnâ€™s OFS Vertical Edition for NetSuite can help oilfield services companies improve efficiencies, streamline their supply chains and save money.Â
For many oilfield services (OFS) companies, the boom or bust nature of the business, requiring a focus either on responding to rapid demand or suddenly needing to cut costs has left them without a reliable technological backbone. Most are a long way from what some have termed the â€œdigital oilfield.â€�
â€œDependence on legacy systems and remotely scattered oil and gas fields are further complicating data-capture from all producing assets,â€� GlobalData Analyst Ravindra Puranik wrote recently, noting that full-fledged adoption of the digital oilfield is still a far way off. â€œNevertheless, oil and gas companies have managed to achieve productivity gains through improved reservoir understanding, remote monitoring of operations and with logistics and supply chain optimization.â€� Learn how to implement these strategies in â€œDriving Revenue Growth and Streamlining Processes for the Oilfield Services Industryâ€�.
Here are five more reasons why all OFS companies are implementing digital strategies today:
- Gain efficiencies and improve profitability. Worth an estimated $63 billion as of 2017, the U.S. oilfield services industry has experienced some major fluctuations over the last decade. From 2012-17, for example, it experienced steep declines, losing an average of 13.6% annually. For the more than 21,000 firms that are currently active in the U.S. oilfield services industry today, managing market volatility has become a way of life. NXTurnâ€™s OFS Vertical Edition for NetSuite helps streamline the dispatch-to-cash process, manages well activity, and provides a procure-to-pay process. Combined, these functionalities vastly improve the manual, paper-based processes that many OFS companies continue to rely on.
- Maximize value across the entire supply chain. NXTurnâ€™s OFS Vertical Edition for NetSuite takes a systematic approach to helping companies find the efficiencies in the services process, and then maximizing that value across the supply chain. The solutionâ€™s streamlined dispatch-to-cash process, for example, ensures that any service thatâ€™s been assigned will be billed.
- Eliminate disconnected, legacy technology systems. Along with their paper-based systems, most are using a variety of different systems to run their businesses, including accounting platforms such as Sage, QuickBooks or SAP. When financial management, revenue management, fixed assets, procurement, order management, billing, inventory management and services delivery donâ€™t â€œtalkâ€� to one another, this disconnected approach is inadequate at best for todayâ€™s growing businesses that seek real-time visibility into essential business data.
- Integrate key functionalities. Like many industries, the oilfield services sector has historically relied on disparate, legacy systems that donâ€™t talk to one another. This creates data, information and knowledge gaps that have to be â€œfilled inâ€� using manual processes. By integrating all functions into a comprehensive cloud computing suite, NXTurnâ€™s OFS Vertical Edition for NetSuite improves command and control of an OFS business and simplifies field service. This unified operating system empowers employees to view and share one true version of data in real-time, leading to greater collaboration among departments, clear visibility for management, increased productivity across the business and greater revenue.
- Gain from unexpected â€œwins.â€�Â For some OFS companies, the biggest â€œwinsâ€� that come from adopting a digital oilfield approach are the ones they werenâ€™t even expecting. For example, NXTurnâ€™s OFS Vertical Edition for NetSuiteâ€™s well and lease code database often fulfills an undiscovered need that the OFS company didnâ€™t even know it had. The company that receives a wireline perforating job at a certain well in the Permian, for instance, can gather all of the pertinent information (i.e., revenue generated at that site, its latitude and longitude, etc.) right in its ERP. â€œThe ability to see the history of a particular well site and services performed across divisions is a game-changer for a lot of our OFS customers,â€� said Joshua Bone, NXTurnâ€™s Professional Services and OFS Manager.
Combined, these advantages can give OFS companies a leg up in a competitive industry where every dollar, minute, and man-hour count. Whether you looking to effectively manage supply inventory, efficiently dispatch technicians and track their activity, streamline invoicing, integrate with field service platforms, or anything in between, NXTurnâ€™s OFS Vertical Edition for NetSuite is designed to help you achieve your business goals.