Transforming the Supply Chain: Digital Tech and Information Silos
The supply chain is often an area of heavily siloed information. Large multinational companies have assets spread across the map and accredited to various facilities or branches, while an overall view of global inventory is often hard to come by. This results in deficits such as over-supply and depreciating assets. As markets fluctuate and demand changes, these silos also leave companies more susceptible to supply shocks and urgent needs.
“A 2017 McKinsey survey showed that most supply chains only had a digitalisation level of 43%. This is despite supply chain transparency being cited by many as a key operational objective.” (1)
Today, that number is much higher, as the pandemic crisis has accelerated the energy industry's digital transformation. Companies are forced to rethink how to manage throughout the current environment. This has created a launchpad for technology in the industry and companies are realizing the benefits of adopting digital tools.
Technology Breaking Down Silos of Information
Energy companies produce large quantities of data that often get siloed. Digitalization breaks down data silos with big data, analytical, and custom AI platforms that make data easily accessible and sharable. These new and emerging data insights are far more sophisticated than previous insights and, in turn, far more helpful.
There are several technologies that improve visibility across the end-to-end supply chain, and support companies’ ability to efficiently manage supply. Using digital supply networks (DSNs), where functional silos are broken down, organizations become connected to their complete supply network. This allows companies to enable transparency across the entire supply chain reducing costs and saving money.
Leveraging other advanced technologies such as the Internet of Things, artificial intelligence, robotics, and 5G, allows energy companies to not only break down data silos, but predict and meet future challenges. Whether it is another pandemic like COVID-19 or a sudden spike in demand, adopting technology is crucial to prepare for the unexpected.
“According to the EY Oil and Gas Digital Transformation and the Workforce Survey 2020, 58% of respondents said the COVID-19 pandemic has made investing in digital technology more urgent, with a majority planning to invest a great deal (29%) or moderate amount (51%) relative to their total budget.” (2)
Technology Advanced Outsourcing
Covid has accelerated the acquisition of technology across the value chain. Many leading companies have engaged in outsourcing through tech platforms that have the ability to purchase, sell and monitor global supply along with many other functions.
PipeSearch is a digital platform using data-driven analytics and access to a global market inventory to help operators respond to our current and ever-changing environment. The platform connects urgent demand to unused stock – creating value across the supply chain. It serves as a global warehouse offering a higher return for surplus owners and viable, compliant options for critical end-user requirements.
The last year has proven that energy companies can operate successfully and more efficiently with digital platforms. Greater focus on digital solutions will only boost efficiency and accelerate the direction towards a more sustainable future.
The PipeSearch Platform consolidates update-to-date mill schedules, lead times, and global market inventory into the largest database of corrosion-resistant alloy tubulars in the world.
PipeFacts by PipeSearch is a multi-stage process that utilizes proprietary software to manage a sequence of QA/QC steps in the evaluation of OCTG. It is designed to bring transparency, integrity, and consistency to the evaluation of tubulars no matter the location of the pipe.
PipeFacts goes beyond standard physical inspections of material. It evaluates the specification of the original MTRs against API 5CRA or 5CT, identifies any exceptions, and sets a standard by which MTRs are reviewed and by which inspections are performed. Our PipeFacts process has been developed to give customers complete confidence in the product they are receiving.
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