The past two years have taught us that without supply chain, our world seemingly falls apart. Supply chain permeates every facet of our lives. Whether it’s for appliances we store our foods in or medicine for our children. It’s no different for energy — from sourcing services, equipment and materials for oil and gas to transporting and refining finished products to consumers in a timely and efficient manner.
As recent events in Europe and the current natural gas crisis have shown us, price volatility and geopolitical risk have posed a threat across the value chain. One way to mitigate those risks is through effective supply chain management and strategic sourcing. And for that, supply chain needs fuel — data and digital transformation.
Data is essential in making accurate and timely decisions, ensuring the efficient and effective movement of goods, and identifying and addressing any potential procurement bottlenecks.
Data feeds into your strategy. The strategy, the “how,” requires a deep understanding of your business and your current position in a market. Strategy involves making complex decisions with long-lasting impact, analyzing and predicting trends and changes in the market — in other words, connecting the dots.
And when we underestimate the importance of connecting the dots, we create silos. As red tape between departments increases, silos slow down even the smallest of initiatives, dipping productivity. To connect the dots, you need accurate, timely and relevant data from a reliable source; this is where source-to-pay solutions come into play.
In addition to automating your procurement and invoicing processes, a source-to-pay suite captures valuable spend data that provides insights by evaluating many factors, identifying patterns and flagging risk areas. These insights are used to make informed, timely procurement decisions.
A source-to-pay suite fuels your supply chain management with data to drive your strategies and digital transformation to boost operational efficiency and seamless collaboration.
Here are three ways Enverus’ Source-to-Pay suites enhance your oil and gas supply chain management.
Take the pain out of IT integrations during mergers and acquisitions
While mergers and acquisitions (M&A) occur to achieve cost and revenue enhancements through the realization of synergies, according to a 2011 report by the Harvard Business Review, between 70 and 90% of M&A projects fail. A fact that still applies today.
One of the main reasons cited in this report is a poor integration process, specifically the neglect of a proper IT integration strategy. Surprising given how an IT integration strategy minimizes the risks of downtime and interruption to operations and ensures data integrity.
When it comes to M&As, a source-to-pay suite helps with IT integrations by providing a centralized platform to manage procurement, fulfilment and invoicing processes. It provides a framework to facilitate the transition and maintenance of your ERP so your operations can continue to run smoothly even in the peak of transition.
An environment conducive to cross-functional communication and data sharing that reduces the need for multiple systems, manual data entry and reconciliation. With this consistent set of tools and processes, you can manage supplier relationships and price agreements, and simplify the integration of these functions across the newly merged or acquired organization.
With a source-to-pay suite, you have access to all your data in a single platform, serving as the single source of truth. So, you can manage the procurement of goods, fulfilment of services and invoicing of suppliers without having to juggle between several systems and data formats. Source-to-pay suites also reduce the risk of disruptions to an organization’s oil and gas supply chain and ensure the newly combined organization continues to operate smoothly.
Improve security, confidentiality and procurement compliance
Historically, energy companies have run procurement and invoicing processes on paper, leading to increased risk of theft or reputation damage from sensitive information, trade secrets or leaked customer data.
Add to that procurement compliance risk due to the lack of real-time visibility into spend and supplier relationships and the need to process large amounts of spend data to derive actionable insights. The result? Wasted resources, overcharges and more cost overruns.
Source-to-pay suites help enforce and assess compliance by providing visibility into the organization’s procurement processes.
With features like a Secure Portal and Customizable Access Setup for suppliers, you can prevent unauthorized access to sensitive information.
Your digital documents are password-protected, encrypted and backed up regularly to prevent unauthorized access, loss or damage. Meaning you can easily share them with authorized stakeholders without the risk of physical copies being lost, damaged or intercepted. Finally, you can tamper-proof documents with electronic signatures for an extra layer of security.
While built-in compliance controls, automated workflows and approval processes provide you with the ability to track and audit all procurement transactions and enforce compliance with internal policies and external regulations.
Recently, NextEra shared how they were able to optimize price compliance and strengthen supplier relationships with Enverus’ Source-to-Pay suite, more specifically our OpenInvoice and OpenContract PriceBook solutions.
Audit and make “G” for governance easy (supply chain management criteria)
A global pandemic, geopolitical unrest and other factors keep extending the recent supply chain crisis.
Manufacturers still fight over a shrinking pool of resources while scrambling to restructure other critical components of the supply chain. This crisis will likely continue into the foreseeable future and our ecosystem is unlikely to revert to its pre-pandemic state.
With this in mind, organizations are prioritizing modernizing procurement technology. According to a survey conducted by Ivalua, procurement leaders are looking for solutions that provide more visibility into supplier risk, integrate source-to-pay processes with existing systems and support more comprehensive spend reporting.
Enverus’ Source-to-Pay suite includes features made for the energy industry, such as:
- Supplier Benchmarking to screen and evaluate suppliers based on specific criteria and monitor supplier performance over time.
- Procurement Automation to streamline processes engaging with suppliers.
- Pricing Optimization and Compliance to systematically control payments against rates and realize payment terms and conditions with suppliers, and even secure early payment discounts.
- Compliance Tracking and Alerts to monitor compliance as well as identify and address any non-compliant behavior internally but also with suppliers.
Through Enverus’ Source-to-Pay suite, you gain access to Procurement Automation, Payment Optimization and Compliance Tracking and Alerts capabilities. We are finalizing our Materials & Inventory Management and Job Dispatch modules. Once launched, Supplier Management will be the next evolution phase of our Source-to-Pay suite. Our vision is to further enhance visibility into supplier risk and support better supply chain ESG governance for operators so that we can continue to usher you into the next era of oil and gas source-to-pay.
Enverus, your trusted partner through oil and gas challenges
With Enverus’ Source-to-Pay suite, you will be better equipped to implement strategies to enhance your oil and gas supply chain management by:
- Taking the pain out of IT integrations during M&As.
- Improving security, confidentiality and procurement compliance.
- Auditing and making governance easy (supply chain management criteria).
We can help reduce the risk of disruption to your operations through the diversification of suppliers, and better assess and monitor procurement risk, contracts and agreements. Enverus’ Source-to-Pay suite allows you to collaborate and communicate internally and externally so you can address potential oil and gas procurement risks faster.
Watch the 2022 SPARK session, “Innovation Acceleration: Source-to-Pay,” on the Enverus Knowledge Hub to learn more about our Source-to-Pay suite.