Every company in the oil and gas arena is unique, but International Oil Companies (IOCs), National Oil Companies (NOCs), service providers (e.g. drilling companies, seismic providers) and EPCs all have one trait in common: The consistent need to deliver more value.
Companies that see logistics as a critical blueprint of their supply chain understand its importance in delivering value.
In the recent past, supply chain and logistics was seen primarily as a peripheral supporting function. Their main scope was to support the business by providing services and goods at required locations when needed.
Today, there is an increasing appreciation of the impact of the supply chain and logistics on the company’s bottom line. These are now viewed as a key contributor to stronger revenue growth, better risk management, greater flexibility, higher consistency in quality and increased customer satisfaction. Ultimately, there is a growing realization that achieving excellence in supply chain and logistics is the key foundation for a multi-pronged value improvement effort.
This puts supply chain and logistics operations in the spotlight, because to meet expectations, companies need to improve their supply chain in the most reliable, cost effective and timely manner. With that being said, best practices still fall short in many oil and gas companies.
The industry is faced with multiple challenges including but not limited to:
- Increasing complexity of supply chains
- Challenging operating environments
- Increased HSSE focus
- Delivery and cost risk exposure
- Relentless changes and increase in regulations
- Compliance and local content requirements
- Rising expectations of customers
These, combined with other factors, present significant challenges to companies to improve their supply chain performance.
Supply chain is a critical functional component of all companies, regardless of which stage of the oil and gas life cycle they are active in—exploration, drilling, projects, operations or decommissioning and restoration—and irrespective of whether they are dealing with upstream (conventional or unconventional), midstream or downstream activities.
If managed properly, the supply chain provides a clear competitive advantage; otherwise, it can cause failures that may adversely impact the business results and hinder the relationship with clients.
The services offered by 4D can support oil and gas companies across their entire project or asset life cycle, from the early stages of pre-execution to execution right up to operating the asset, including decommissioning and restoration.
Our large pool of subject matter experts (SMEs) with extensive industry experience and support enable our clients to deliver projects and operate assets efficiently, safely and in a reliable manner.
See our Client Services to understand how our products can help you to improve your bottom line.