How Do Operators Organize their Projects and Orders in Oilfield HUB?

It is vital for our energy services clients to understand how Operators and EPCs are using the HUB so each of them can leverage and gain the greatest possible advantage as these companies are managing their preferred vendors, projects and making their procurement decisions.  In this 3rd post in this series (refer below), I am going to tackle how operators are using Oilfield HUB to become leaner, meaner and more cost effective by using the project management features in the HUB to better organize and manage their field purchasing activities.

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

While not the sexiest of subjects to write about, it still has a profound impact on how Operators select and deal with their preferred vendors on a daily basis.  Oilfield HUB provides Operators with the flexibility to organize their field operations, and related procurement activities, in a hierarchical fashion, by PVM Control Files, Wells and Projects.

PVM Control Files

Let’s start at the top with the PVM Control File.  By the way PVM stands for Preferred Vendor Manager.  It’s an important distinction if you’re part of the services sector as this is where all of the action starts.  By this stage, the Operator has already built their Master Preferred Vendor List, along with how they privately rate each vendor from a service delivery standpoint.  They use this master list, to create individual PVM Control Files, to manage their drilling and field operations, say by region, division, basin or geographic location.  They do this when the contacts, preferred vendors, and company personnel managing the assigned wells are different between PVM Control Files.  Operators build these files, by first adding which preferred vendors will be involved in the program, next by adding the contacts at those companies who they will be dealing with, and lastly be establishing who within their own company can edit or view all of the well, project and ordering activities which will be taking place.

This might sound like a lot of work, but the HUB makes this pretty easy to do.  If you are a micro-junior, you might just need one PVM Control File, but as the size of the company grows to junior or intermediate status, any number of PVM Control Files can be created.  As a service company, being included in a control file virtually guarantees doing business with the Operator as their drilling programs unfold.

Wells

Once the PVM Control Files are established the Operator moves to adding and configuring the Wells which will be attached to each control file.  Wells can be added at inception, or at any time in the future.  The Operator can simply adopt the PVM Control File contact attributes, or they can drill down even further to specify who within their company has access to edit and view projects and orders for each Well file.  This is where the crux of the information is entered covering the description and particulars of the well.  Not only is this information used internally, but it will also be shared with their preferred vendors and new suppliers when product and service ordering commences.  This is valuable to the service company as incoming orders and responses can be easily identified and managed in support of their clients through the inquiry, bidding and fulfillment stages of the order request.

Projects

Under each Well file an unlimited number of Projects and can be added and configured.  While the HUB tends to focus on the Construction, Drilling and Completion projects of the well lifecycle, every aspect to the well can be segregated into individual projects.  Here to, the Operator can simply adopt the Well file contact attributes, or they can drill down to specify who within their company has access to edit and view both project details and all associated sourcing inquiries, bid requests or authorized orders for each particular project.  Many services companies tend to focus their expertise and services on specific projects within the well lifecycle.  The HUB provides the Operator with the ability to segregate their projects under each well, along with the associated data, all of which flows down to the service company through their own online Orders Dashboard on Oilfield HUB.

Orders Dashboard

This is really where the rubber hits the road, for both the Operators and all of our Preferred Vendors in Oilfield HUB.  In the 4th and final post in this series, I will provide an overview of the Orders Dashboard along with the value proposition each of our client groups drives from Oilfield HUB when using the final, and most important, component of the Supply Chain Manager feature in the HUB.

January 15, 2015

 

Kevin Turko CEO Leadstone Group Inc.

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