Source-to-pay best practices

For oil and gas

Sourcing

Best Practice #1

Build a strategic sourcing strategy with granular spend analysis.
  • The cornerstone to a successful supply chain strategy is knowing what and how much you’re buying, who you’re buying from and the total cost.

  • Gaining access to granular price details on goods and services is an industry-wide problem. Retrieving this valuable information is extremely manual and time-consuming and results are often inaccurate and obsolete by the time it is compiled.

True or False

30% of all invoice spend data is trapped on attached pdf documents.

Your correct. It's true!

On average, 30% of a company’s invoice spend data is trapped on attached PDFs, making accurate spend analysis difficult.

← Back to the question

You're incorrect. It's true!

On average, 30% of a company’s invoice spend data is trapped on attached PDFs, making accurate spend analysis difficult.

← Back to the question

You need 4 things for top notch spend analysis

Comprehensive

You need ALL your spend data, including "trapped" data from PDFs attached to invoices.

Factual

Spend data should be based on actual transactions, not surveys or estimates. The database should also be constantly refreshed for the most accurate, strategic spend analysis.

Normalized

All the data is transformed into a single, universal naming convention to be able to perform an "apples-to-apples" comparison.

Granular

The data needs to be categorized by product or service type and then cataloged down to the attribute level, like size, material, body, or valve type.

Check out this video about spend analytics by enverus

Enverus OpenInsights, a spend analytics solution, provides operators visibility into goods and services spend at a granular level.

Get the insights your supply chain team needs to strategically source materials, manage vendors and optimize collaboration between your supply chain and operations.

Enverus offers regional market price indices for every category—chemicals, proppant types, mesh sizes or OCTG. You can use these market indexes to gain an understanding how your company has performed in different categories compared to the market.

Openinsights case study

Operator uncovers cost-saving opportunities with spend analytics.

In 2014, a leading North American E&P company, set out to make its internal supply chain a driving force in managing supplier agreements and costs for better cost predictability. The company needed to access its spend data to make decisions on purchasing and uncover cost-saving opportunities. Organizing and categorizing invoice data proved difficult due to the complexity of how goods and services are managed.

Want to learn more?

Are you ready to increase your capital efficiency to turbo-boost your Shale 3.0 growth strategy? Request a meeting with our digital transformation experts today!

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.