Customer Stories
Unlock Greater Efficiency for Scalable Growth and Agility
Chesapeake Energy used the OpenInvoice® digital invoicing solution since 2003. The company is very invested in finding new ways to unlock efficiencies across the business, both from a time- and cost-savings perspective. While digital invoicing was providing value for the accounts payable team, there was still a high number of manual touches for its operations and supply chain teams. These inefficiencies hindered Chesapeake’s ability to scale its operations for growth.
A couple of key areas the company looked to digitalize and automate were field tickets and price compliance. There was a lot of manual coding required by accounts payable, the field was having to manually review tickets and chase missing tickets, and the production foreman was having to spend time picking up tickets at the field office.
Price compliance was maintained by accounting, but collaboration with suppliers wasn’t real time, which put a heavy burden on the accounting team. Chesapeake had two full-time employees dedicated solely to managing digital price books. Supply chain was emailing suppliers back and forth; pricing was slow to be approved and updated. In an industry where price leakage can account for .05-1.5% variance on high CapEx and LOE, Chesapeake knew it wanted to close the gap on price leakage.
Manage Price Agreements, Receiving and Invoicing in One Platform
In 2022, Chesapeake implemented OpenContract® PriceBook and OpenTicket® to further automate workflows between supply chain, field operations and accounts payable. Using a solution designed specifically for oil and gas and all its nuances, like dealing with properties in the well locations, made the solution more out-of-the-box for the company and intuitive for users.
Getting buy-in from executive leadership was the first step for successful implementation. It was also critical that each team that used the solutions or was impacted by the solutions understood the positive outcomes from the change. Chesapeake made sure to have regular meetings with production engineers, supply chain, team members in the field office, the supply chain team and others to let them know how the project was going and show performance metrics to reinforce success.
Chesapeake closely monitors its performance metrics every month to ensure it stays best in class. It also takes a “reset” each year to understand if the company is using all available capabilities of the Enverus business automation solutions. This requires constant engagement between Chesapeake and Enverus.
Reduce Price Leakage
Automatic price validation from OpenContract® PriceBook adds up to actual dollars in savings for Chesapeake. Now category managers own the relationship with suppliers and pricing agreements and changes can be updated and approved right in the solution, making price management much more efficient.
Less Administrative Burden on Field Operations and Accounts Payable
By managing price books with suppliers, field tickets and invoices on one platform, coding, price validation and some invoice approvals are now automated and have eliminated manual touchpoints required by the different teams. Chesapeake estimates a 20% increase in auto-coding and a 20%-40% increase in auto-invoice approvals. Also, the ability to approve invoices and field tickets on a mobile device has also improved employees’ everyday tasks.
Strong Supplier Relationships
The full workflow has shortened turnaround times on invoice processing, invoice coding and invoice approval. This ensures suppliers are paid on time on their terms and Chesapeake receives cash discounts, creating strong business relationships.
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