Jessica Assunto | 14 days ago
Articles

How Outsourcing Can Help Energy Companies Navigate Instability


The energy industry is learning about the benefits of outsourcing supply. It has been magnified by today's environment of industry volatility post-Covid. For many operators, the need to disrupt project budgets and question current operating models are essential for survival now and in the future. The path forward is likely to include engagement in outsourcing material to help resourcefully operate projects and find new options, processes, and technology to perform in the current market and prepare for the new tomorrow. Specifically, there are three areas in which outsourcing can benefit the industry today:
  1. Scalability and Usability: Energy is an industry with fluctuating demand. Outsourcing to efficiently operate projects can be cost-productive and valuable in times of high demand. Today, there are options with a plethora of digital resources in response to the market's needs. This partnership is often preferable to moving between under- and over-resourcing, which is common in the industry.
  2. Optimization Management: Getting the highest value from every vendor is crucial, especially in a fast-moving economic environment. However, the ability of just one vendor may not be aligned with changing demands of a project, especially when burdened by slow vendors, delays, or supply shortages. To improve productivity, you must outsource for cost optimization and to stay on time and within budget. Energy companies already report they are finding it challenging to obtain supply with the vast amount of shutdowns and delays – which, in older models, caused projects to go over budget and leave crews at a standstill. With the acceleration of digital technology in the post-pandemic environment, inventory and accessibility are at our fingertips. Increased capabilities due to artificial intelligence, automation, data insights, and analytics are increasingly important and can deliver a competitive edge when leveraged wisely. Outsourcing addresses many challenges, allowing you to build options that are optimal for operations. Emerging tech will give projects the ability to offload single-stream supply options and avoid underutilization.
  3. Technology Changes Pace: In addition to the challenges discussed above, many industries are forced to confront fast-moving waves of change to manage opportunities with time-efficient technological advances. The energy industry is no exception. Covid restrictions and constant regulatory changes continue to alter supply and demand. With shifting policies having the potential to impact the energy industry significantly, technology has become a helpful resource.

It is critical to learn the benefits of technology, even as the demands on supply offloading increase. Today, many companies struggle to keep up amid all this change. Regardless, economic growth in both emerging and developed markets suggests an expected increase in energy consumption. Every segment within the energy sector has its unique challenges and complexities. A common thread among them is the need to contain costs and drive efficiencies through technology adoption. A fast-paced, changing global market with economic uncertainties and supply risks pushes energy companies to outsource supply and adopt a dynamic, cost-efficient approach to operations and processes.


PipeSearch

PipeSearch is a digital technology that allows operators to outsource the management of their OCTG. The platform connects urgent demand to unused stock. Our commitment to quality and reliability is what separates our platform from others. PipeSearch is a digitized platform that provides technology-based solutions that enable users to buy and sell tubular goods. We connect critical projects with the materials that are vital to the drilling operations. Please click here to view our complete product guide.

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