The equipment rental landscape is extremely vast and is thus becoming increasingly specialized; this trend is fully ingrained in companies involved in energy production, such as those in the oil & gas industry. Businesses operating within the oil & gas industry face a unique and daunting set of challenges, which significantly test the functional limitations of any ERP software solution. Those few ERP systems that offer an effective solution are an even more valuable tool to navigate and manage the especially difficult landscape with which the industry must deal.
Oil and gas suppliers as well as the companies that serve them, conduct worldwide operations spanning over international boundaries and economies. They operate huge, complicated, and often dangerous equipment in some of the most physically extreme locations with regards to temperature and distance. They are subject to rigorous and constantly changing regulations, which vary throughout the world. They require very specialized workforces spread throughout the world along with equipment that has ongoing and demanding repair and maintenance needs. To make matters more complicated, the industry is subject to huge revenue and cost volatility, requiring huge investments and years of lead time. In all, there are very specific demands in oil & gas and the software used to run it.
There are areas of ERP software functionality on which the business processes that drive oil and gas companies are especially dependent: asset management, multi-country and multi-currency integration, project specific management and accounting, resource scheduling, equipment maintenance and service management, cost center based accounting; mobile and remote access, bulk inventory warehouse management, costing, as well as time and expense management. Compliance capabilities with various local governmental, environmental, and financial standards can be streamlined for those in management or accounting. Additionally, running an entire worldwide enterprise within a single ERP solution offers the organization full access to meaningful real-time data for analysis and decisions.
The oil & gas equipment industry is facing increasing demand, as indicated by a rising number of rigs, and oil price volatility. Especially with recent advancement in countries like the United States, which is turning to hydraulic fracturing, or fracking, for increased oil output. With the rise of new technologies, also comes a spike in demand for the specialized equipment to perform these new operations. Through careful handling and maintenance of this equipment, energy organizations can increase their service intensity, thereby increasing the effectiveness and utilization of their assets on each individual rig.
A single ERP solution brings together workers across all time zones and functions. It allows for complex workflows between departments and regions breaking down functional walls and silos. For example: an organization may have its accounting and procurement department staff located in North America and Europe, its field operations in Asia and the Middle East, and inventory and warehousing spread across 7 locations in both Europe and Asia. All of these departments must be functionally involved with the spare parts purchasing business processes. Requests are generated, inventories checked, approvals required, budgets checked, PO generated, orders placed, confirmations received, parts received and inventoried where needed, invoices received, and confirmed paid, etc. This is a complex interdepartmental business process, which would be a challenge if everyone involved was in single location. The real challenge is even more complicated, when you take into account the complexity of time zones, languages, cultures, geography, and international accounting and transactions. Leveraging an ERP solution actually creates simplicity from complexity. Everyone is looking at the same system, the system is guiding the process, and transactions and processes all occur in real time.
An ERP solution is only a real business solution if it can support and enhance the flow of the business functions through its standard processes. The oil and gas industry requires extremely demanding and complex business functions complicated by the unique nature of the business. A broadly functional ERP solution can manage and overcome these challenges. Contact HSO today for more information.
About HSO Services
HSO, Microsoft’s ERP Partner of the Year 2014, is a leading provider of enterprise business solutions based on for the Multi-Channel Retail and Services industries, including Microsoft Dynamics AX, CRM and Office365. For more information, contact HSO at (847) 348-0588, through email info-usa@hso.com or www.hso.com.
The post Drilling in Uncharted Territories appeared first on goERPcloud.