SCM – The Holy Grail of Oilfield HUB

So what’s SCM?  Supply Chain Manager, or better known to Operators and EPCs as the place they go in Oilfield HUB to initiate sourcing inquiries, dispatch bid requests and award authorized orders.  The buck stops here!  SCM is where producers, and their contracted EPCs, as well as the suppliers (aka energy services companies) experience the unmistakable value proposition the HUB brings to both head office and field operations.  In this 4th, and final post in this series, I will describe how Operators are using these tools in Oilfield HUB to become leaner, meaner and more cost effective, while at the same time reinforcing the relationships they have with their preferred vendors.

If you haven’t had a chance to take a look at my previous posts in this series, don’t let this stop you, and by all means read on.  For those that are interested in how Operators are building a foundation in the HUB that culminates in their use of SCM to better manage the procurement of services, supplies and rentals for the lifecycle of their wells, I have provided links to the other posts in the series for easy reference below.

4 Part Series – Operator Blogs

Operators are taking advantage of our Oilfield HUB service to:

• Manage their preferred vendor lists. (Read More >>)
• Search for products, services and people. (Read More >>)
• Organize their field operations for wells, projects and orders. (Read More >>)
• Centralize their sourcing inquiries, bid requests and authorized orders.

Ordering Using the HUB – Easy-Peasy!

First the tactical, how do they do that?  It’s really quite straight forward, and so it should be! Early on when an Operator is first activated in the HUB, they piece together their preferred vendor lists and project organization building blocks that make all this possible. With these elements being pre-configured ‎the Operator can proceed effortlessly to creating Orders using SCM.  By the way, by ‘Orders’ I am referring to sourcing inquires, bid requests and authorized orders. Orders are all basically the same format.  It is the state of the Order, and the product and service outlined within, that actually differentiates between what type of Order is being created and sent to preferred vendors, and other potential suppliers, covering all stages of the Operator’s sourcing activities.

The Anatomy of the Order

Once the product or service being sourced has been selected by the Operator, it’s time to link the applicable contacts from within their company to the Order as well as to specify which suppliers will be asked to respond to their request.  This can range from a single preferred vendor when an actual approved Order is being placed, to multiple preferred vendors, and potential new suppliers, in each Order when sourcing inquiries and/or bid requests are being prepared and dispatched.  All Orders are sent via email to the specified supplier contacts, and are also made available online to each of the linked energy services companies who are also participating in Oilfield HUB.  Additional documentation can also be included and attached to the Order at any time along the way.

Orders Dashboard

The Operator has access to an Orders Dashboard in the HUB to manage the status of their outgoing Orders and all incoming responses from their pre-selected vendors.  The Order Dashboard provides a complete snapshot of all Orders being sourced and provides an easy means for the Operator’s head office and field personnel to approve and decline any response received or withdraw the Order at their discretion.  The recipients of the Orders also have access to their own private Orders Dashboard once the service company is also doing business in the HUB, or they can simply reply to the original Order email received.  No more missed orders or responses on either side of the fence!

Centralized Order Communications

The backbone SCM lies in the HUB’s ability to track and log all external email communications and internal postings pertaining to each and every Order.  All Orders are assigned a private and unique identifier which enables the HUB to store and sort all associated email and posting communications in one place, with the Order!  This also pertains to all subsequent email correspondence, and internal HUB postings, generated as part of the ordering process in SCM.

Not only is this information made available to the Operator’s staff, this same feature is available to every service company who is also participating in Oilfield HUB.  Each party can only see their own private data for the Orders and Operators they are attached to.  No more hunting through multiple email accounts to locate an important piece of correspondence as it’s all stored at your fingertips in the HUB!

Supply Chain Manager (SCM)

There you have it, SCM or should I say Orders are actually the Holy Grail of Oilfield HUB.  Once your company is actively receiving and responding to Sourcing Inquiries, Bid Requests and Authorized Orders through the HUB it just can’t get better than that!

 

 

February 18, 2015

 

Kevin Turko CEO Leadstone Group Inc.

Get in touch with Kevin:                                                         kevin.turko@leadstonegroup.com       (403) 537-6561