To meet the demands of ESG and increase incremental margins, it’s time for the energy industry to shift its view of the supply chain as a tactical, reactive organization to one of strategic value. After all, the supply chain offers significant white space to improve process and cost efficiency with digitization and automation.
The volatile environment of commodity markets and the macroeconomic situation created by COVID-19 have made apparent the importance of a strong, strategic supply chain. While other industries operating with razor-thin margins — like automotive or consumer packaged goods — have long looked to the supply chain as ground zero for resource optimization and cost management, energy is far behind. Enter Enverus’ Source-To-Pay solution.
What is Enverus Source-To-Pay?
Enverus Source-To-Pay provides a complete end-to-end solution from sourcing to payment on a single platform, connected to the largest network of buyers and suppliers in the industry. Transacting on a connected platform allows for collaboration between supply chain, operations and accounting and finance, provides access to valuable spend insights and reporting for strategic sourcing and improved cost management, increases process speed and efficiency with automation and reduces G&A and IT maintenance costs.
Watch this video to learn more about the Enverus Source-To-Pay solution.
A world-class source-to-pay tool designed for the energy business is paramount in transforming your supply chain to a source of strategic value. Integrating and automating the management of all business support functions on a single platform creates an ecosystem of value. It provides the real-time visibility required for the scenario planning vital to operators working within the volatile industry. An accurate supply chain management system affords companies of all sizes, strategies and cultures, the opportunity to participate in the ongoing digital transformation. The more understanding and visibility you gain into core suppliers and their subs, the easier it is for you to make accurate, data-driven decisions. This mitigates risk, provides greater visibility and creates a competitive advantage for the entire company.
Below we’ve outlined a few ways Enverus’ Source-To-Pay solution can help increase your profits:
1. Adopting a manage-by-exception model
To compete in this new world, our day-to-day business support functions must be as efficient and automated as possible. An organization’s focus should be on operations, value creation, process improvement and automation of redundant support functions. Staff must be focused on identifying risk within the supply chain, ensuring the appropriate suppliers and their backups are profiled, understanding who their suppliers and sub-suppliers are, and identifying risks of natural disasters or geopolitical events.
A streamlined, source-to-pay platform automates processes, allowing you to manage by exception and get real-time visibility into operational risk and supplier risk, including safety, financial, environmental, quality and performance. These measures save time and money, and are an essential part of the ESG requirements energy is now held to.
Imagine combining intelligent maintenance with intelligent sourcing to completely automate maintenance and repair tasks. Prediction of an issue by IOT systems is routed to the appropriate material or service supplier already vetted in the supply chain system to perform the task. The requisition for material or service is dispatched, the work is completed, validated and performance graded, and the supplier is paid — all without a human touching a piece of paper, sending an email or making a phone call. The organization’s work becomes focused on process improvement or exceptions.
2. Adopt should-cost modeling
Utilizing trusted, real-time data is critical to future success. It allows your current and prospective investors an opportunity to validate your performance against your peer group, giving you an inherent advantage in our challenging new investment world.
To enable data-driven decisions and a should-cost modeling environment, the visibility of validated real-time invoice line-item cost detail data is paramount. Performance and risk management must be combined to fulfill the ultimate value proposition, providing you with the significant value components in one easy-to-access system for your entire enterprise and investors.
Digital transformation does not happen overnight. It must be completed with a careful understanding of the entire commercial support function and its supplier base. Enverus approaches this opportunity with an unparalleled level of experience and understanding compared to other supply chain systems currently on the market. Enverus’ understanding of the energy space is vital to helping our partners reach this digital transformation. Early adopters of this approach that achieve total digital transformation will capture and maintain the lucrative investment dollar.