The price of crude and natural gas is determined from a multitude of factors and can significantly impact drilling activities. To maintain consistent profitability in the oil and gas industry, companies need to have strong end-to-end control over their production process and the ability to ramp production up and down.
Oil & Gas
How to Implement Lean Flow
For Oil & Gas
Lean Flow Principles can allow oil and gas companies to have very tight control and visibility throughout their supply chain. FlowVision has significant expertise is working with oil and gas companies designing fast and responsive processes that can quickly scale production up or down, based on up or downstream inputs such as the price of oil and activity at the rigs.
Drilling for crude oil is a capital intensive process that requires significant amounts of complex machinery: pumps, values, fishing tools, and spare parts. That often translates to large amounts of inventory that, if not effectively managed, can sit around and unnecessarily tie up enormous amounts of working capital. ION gives oil and gas companies the necessary visibility into their inventory and supply chain as well as a tool to dynamically adjust inventory levels as oil prices and demand fluctuates.
As oil prices drop and drilling slows, inventory can quickly and effectively be reduced to preserve capital. Conversely, when crude oil prices are high, it is equally important to have all the necessary products and equipment in stock to readily serve your customers. ION allows manufacturers to have the right mix of inventory and spare parts to maximize revenue generation during up times while reducing excess inventory.
True Cost of Inventory
The true cost of inventory is so much more than just the cost of capital. Understand the right way to calculate your fully loaded cost of inventory.