Delays and Interruptions Are Expensive
One of the key challenges facing operations leaders is ensuring that projects are consistently running as efficiently as possible. Delayed projects means a reduction in output – data from energy analysts, Rystad, showed that delays could result in production being 6% less than expected costing energy companies billions of dollars. It was estimated that, in 2020, $195 billion worth of non-shale projects were delayed. This is detrimental for operations leaders who are responsible for ensuring projects are uninterrupted and it is extremely costly to the energy companies that rely on that production. Research has shown that an average energy company goes through at least 27 days of unplanned downtime each year, costing up to $38 million per project per year. Even if the downtime lasts for just 3.65 days, the resulting losses can be as high as $5 million.
Preventing Interruptions is a Daunting Task
- Approved Vendor Lists are sometimes hard to navigate & finding new vendors just-in-time is not easy - In order to keep projects running, operations leaders need to understand who is available to work with them when a need arises. Many operators’ vendors are dispersed across regions, departments and categories so it is difficult to see who is available. The approved vendors are not always visible because they are scattered throughout the business and not always in a central repository.
- Onboarding new vendors takes months - Operations leaders also need a solution for getting vendors onboarded and vetted quickly when there isn’t a vendor available on their AVL. The problem is when companies have to onboard a new vendor it often results in a process that can take up to six months. That 6 month period directly impacts revenue. There are a lot of reasons onboarding takes so long - compliance, contracts, pricing negotiations, etc. Negligence in any of these areas could lead to a raft of negative consequences including disruption in operations, product recalls, customer cancellations, legal action, and reputational damage.
- Invoicing is fragmented and time consuming - Ensuring invoice accuracy is a major challenge for operations leaders partly because of the high volume of invoices that need to be processed and partly because of the complexity of the invoices themselves. A single Oil and Gas project may require 50 vendors - managing the complex payment terms, timing, submission and processing of these varied invoices is very time consuming.
Workrise Can Help Operations Leaders Better Manage Their Vendors
- Provides better visibility into already approved vendor lists. Workrise gives operations leaders information on availability, the services provided and the regions where vendors are present in one view. This helps operations leaders to plan and execute field operations, while ensuring accurate resource allocation and scheduling of labor and equipment.
- Makes finding new vendors easier. The Workrise network includes 400+ vendors that have been vetted and screened. Operations leaders can easily search their vendor list to identify who’s already onboarded to their organization, eliminating the time it takes to find new vendors when they need them.
- Helps to minimize downtime via faster onboarding. Negotiating MSAs can be extremely time-consuming, but Workrise can finalize the MSA process in days rather than months. Workrise clients are seeing an average vendor onboarding time that is over six times faster than the industry average.
- Handles transactions and invoices end to end. Vendor overbilling, and other types of fraudulent activities, are not uncommon, but Workrise can ensure that vendors charge the correct amounts for their services. Workrise also provides a streamlined, consistent invoice formatting - meaning no additional costs are incurred due to invoicing errors.
- Gives visibility into spend data in real time. Workrise also enables operations leaders to use the real time data to see what has been invoiced by a vendor at the region, category, vendor and project level, which helps field operations teams stay on budget.
With Workrise, operations leaders can plan projects more accurately, as well as make more precise forecasts and get a clearer overview of project resourcing all while staying compliant.
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