Advances in purchase order management software continue to create new and valuable opportunities for operators to reduce project delays and overspending along the entire source-to-pay process, from touchless invoicing to digital field ticketing to purchase order automation and beyond. And while digitalizing and automating each of these parts of the source-to-pay process has proven to add value to oil and gas companies of all sizes, today we’re going to focus how to automate purchase orders to help your team overcome common challenges.
Purchase order automation has the power to relieve oil and gas operators and OFS companies of many headaches in the procure-to-pay process. Energy companies continue to manage the procurement process using tedious, manual workflows that result in the same issues over and over — limited visibility to accounting teams on committed spend, duplicate invoices and payments, delayed payment to suppliers, manual verification and matching of documents, to name a few.
For operations, this could mean missing your bonus because the lack of spend reporting caused the project to go way over the budget. For supply chain teams, this could mean purchasing happens outside of pricing agreements. Accounting teams face dreaded, time-consuming manual processes like the three-way match and invoice approvals.
Tracking goods and services using paper documents is challenging and often creates poor spend visibility.
While these pain points are enough to drive these teams crazy, there’s an unsatisfied resignation that this is how things are for two reasons.
1) Different companies have their own ways of managing and documenting this process, so there isn’t one solution flexible enough to meet everyone’s unique needs.
2) The existing procurement solutions used by our industry today are either:
- Not solutions, but a combination of email and spreadsheets used to manage purchasing.
- Not designed for the energy industry’s unique procurement needs.
Introducing streamlined, efficient ordering with OpenOrder
The new OpenOrder purchase order management software solution by Enverus, allows oil and gas operators and OFS companies to create and process purchase and job orders for dispatching services and ordering materials through the entire procure-to-pay process. The solution integrates seamlessly with OpenInvoice, PriceBook and OpenTicket, allowing you to manage the order-receive-invoice process in one platform while ensuring consistent coding (cost objects and GL codes). This means you can reference the orders to both field tickets and invoices, saving significant time with automated compliance checks and three-way matches. Also, automated three-way match allows you to make automatic invoice payments without manual intervention.
OpenOrder is also less expensive than using multiple systems. By managing ordering on the OpenInvoice network, it’s much easier and faster to collaborate in real time with your connected suppliers. Buyers and suppliers transacting in the same environment results in better communication, more transparency and fewer processing delays.
Watch this brief demo video to see the OpenOrder experience.
How OpenOrder creates time savings for every group involved in the procure-to-pay process
- Improve procurement control: Supply chain teams can monitor and regulate purchases with insights into what and how much you purchased and from which supplier.
- Optimize spend: Digital procurement workflows provide operations a view of costs before they are incurred through receipts and invoices for companies to stay on top of project budgets and overall spend. With access to digital spend data, supply chain teams can conduct spend analysis to identify future cost saving opportunities.
- Streamline dispatch: Operations can keep projects moving on time. Purchase order automation and centralization of dispatch allows a single team to manage the match and dispatch process in a single platform.
- Save time: Fully integrated ordering, receiving and invoicing allows for automatic references and matching between a contract, order, receipt and invoice, saving accounting teams significant time processing invoices for payment. By eliminating payment delays, companies can pay suppliers on time, creating better supplier relationships.
Success in the field: How Grayson Mill Energy leverages Enverus procurement automation software to optimize operations
Grayson Mill Energy, currently using OpenOrder, OpenInvoice, OpenTicket and PriceBook, uses POs for inventory items and engineering services. Their main driver with OpenOrder was capturing procure-to-pay and automating the three-way match to create lean, efficient operations.
“On other systems, a three-way match is hard to execute. With OpenOrder, we had all the back info – well ID, supplier info, etc. When you have a PO with approval and coding up front, it’s much easier to validate with the goods receipt. When the supplier submits the invoice, there’s your match all in the same system, in one place. It really automates your approval process,” said Mary Atkinson, the director of supply chain at Grayson Mill Energy.
With OpenOrder, we have all the information, and it all matches. —Mary Atkinson, Supply Chain Director, Grayson Mill Energy
Enhancing the purchase order automation experience for oil and gas operators
The Enverus team continues to develop OpenOrder to include more functionality in the near future. An RFx module will provide integrated sourcing and bids out of goods and services. The results of the “sourcing event” will allow for the conversion of the bid results into a commercial agreement within OpenContract – a new smart contract management solution launching in 2022, a purchase order within OpenOrder, or both depending on company processes and requirements.
Regain your sanity with purchase order automation
If the definition of insanity is doing the same thing but expecting different results, OpenOrder will bring the sanity back to your procure-to-pay process. You won’t have to work in your cumbersome ordering system that creates manual work, confusion and frustration. Instead, you’ll be trying something different and, we believe, you’ll experience different, better results.
Request your live demo of OpenOrder by filling out the form below.