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ERP for Oil and Gas Industry

ERP for Oil
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ERP for Oil and Gas Industry

Oil & Gas industries are among the early adopters for ERP system, as for a major section of the industry is dependent upon the precise workflow management and market analysis. An ERP system can increase the efficiency of the organization, while aiding you balance multiple projects & operations effectively. Furthermore, ERP service providers for oil & gas industry provide you with easy to use modules such as sales, purchase, inventory etc. that can enhance and streamline your business processes.

Oil and Gas Industry managers are always on their toes to meet the ever-increasing demand of the commodity as well as managing between the fluctuating regulations and resources. The inculcation of a smart ERP software solution such as Sage X3 can simplify the entire process with its agility and flexibility to get apt with the user’s needs. Moreover, oil and gas are in need of a careful handling, for which Sage X3 can provide a cautious warehouse and supply chain management.

When it comes to reliability, Sage X3, the partly cloud based ERP software service, tracks and records every process in real time. These data are accessible on any device on the go, thereby keeping you updated at every phase of operation. The same accounts for oil and gas industry, wherein a substantial amount of risk is involved, nevertheless, Sage X3’s automation and business intelligence can help you schedule and manage every process with utmost safety, minimizing and escalating any chances of mishaps occurring.

A Quick Round-up of Oil & Gas Industry Challenges

1. Refining Crude Oil at the Lowest Possible Cost.

2. Plants have no Unexpected Shutdowns.

3. Reducing Environmental Impact.

4. Increased Competition from Alternative Energy Products.

5. Strict Legislative Frameworks.

Challenges in the Oil & Gas Industry

1. Equipment Readability
Decreasing downtime and improving equipment reliability are two of the most critical challenges for oil and gas companies. Companies need to constantly run their equipment within the optimal range as mentioned by the Original Equipment Manufacturer (OEM), which helps boost the “Mean Time between Repair Replacement.”

2. The Workforce is Aging

The aging workforce is a massive challenge for every oil and gas company—the main reason being the high amount of risk and volatility in this sector. As a result, when experienced employees leave, companies feel the pressure of onboarding new contractors and employees. But the main problem is that they are less experienced in their jobs and unfamiliar with how processes are executed. Therefore they need a lot of training sessions before they can perform their job efficiently.

3. High Possibility of Accidents
The oil and gas industry is susceptible to various large-scale events, such as shutdowns, turnarounds, lockout/tagout, and equipment isolation events that require a lot of planning and a few days, weeks, or months to return to normalcy. Also, oil and gas companies are easy targets for large-scale accidents during shutdowns and need extra care and planning to keep employees safe.

4. Frequent Inspections
The oil & gas industry needs facility and equipment inspection at regular intervals. These inspections require emergency response equipment, temporary structures, operational readings, moving equipment, ladders, and much more. In addition, these inspections ensure that the processes go on efficiently, that there are no communication lapses between various departments, and that full measures are taken to ensure employee safety.

5. Ensure Spill Control
Oil and gas companies need to be wary of leaks and spills as they can cause massive destruction if not controlled on time. Many cases have been reported where employees have got third-degree burns or died due to failure in delivering a quick response.

How will Sage X3 help you solve the challenges mentioned above?

1. Notification & approval

The pipeline connecting the IT team with the field operations department is a one-way road, meaning it’s challenging to send notifications, alerts, messages, updates, or requests back to the IT department from the field. So, field operators rely on manual courier services to send data back to the IT team, which leads to erroneous data.
On the other hand, ERP software facilitates the free sharing of critical business data with all relevant stakeholders, dramatically increasing the speed of notifications and approvals.

2. Problem detection & resolution

ERP system allows oil and gas companies to quickly detect issues and resolve them. For example, it can intercept the message from a field system and forward it to the troubleshooting team for resolution. Thus, the ERP system can set up automated alerts for delayed field activities.

3. Capacity planning

Capacity planning is essential for every industry as it helps estimate the size of the workforce, raw materials required, and equipment needed. For example, ERP for oil and gas companies helps achieve a reasonable forecast, perform complex analysis on historical data, and create automated systems for performing jobs more efficiently and in a fraction of a second.

4. Collaborative planning

Typically, the supply lines in the oil & gas industry are too long as they travel from the main headquarters along various booking agents and suppliers to reach the end-user. Thus, companies must maintain excellent relationships with multiple stakeholders to resolve contractual issues that may come up due to the long length of the supply line.
ERP solution maintains the free flow of information between different parties, allowing easy collaboration with various industrial sectors and helps resolve issues quickly and efficiently.

5. Cybersecurity

Cyber attacks are rising rapidly. According to the report revealed by Ponemon in 2019, an average data breach causes companies to lose USD 3.92 million. So it’s an alarm bell for oil and gas companies for securing their assets from falling into the hands of hackers.

Fortunately, an ERP solution has data security modules pre-loaded with the latest encryption algorithms that protect assets, especially pipelines, from hack attacks and shield the organization against significant losses.

6. Standardized Field Data

Input is sent from field units to the central unit through a complex pipeline network in the oil and gas industry. As a result, data from different field units must be standardized to be recognizable during the integration process. Sage X3 is the best ERP software for the oil and gas industry because it helps convert proprietary data into a standardized format that stakeholders across the enterprise can analyze.

7. Active scheduling

ERP software should work in tandem with the operational schedules in the Oil & Gas industry. ERP software’s maturity level dictates the level of integration between the operational schedules and the ERP. New ERP solutions are better equipped to support these integrations, as they are more specific, narrower, and fully enabled.

Benefits of ERP in Oil & Gas Industry 

1. Fleet Management Tools : The Sage X3 Route Optimizer stores details regarding quantities, delivery addresses, and preferred time windows. You can also capture information about vehicle types, allotted capacities, and driver shift details. This software calculates the most efficient delivery sequences that help deliver within the set deadline. Moreover, you can edit proposed routes and send confirmation to drivers with driving instructions and maps.

2. Fixed Asset Tracking and Maintenance : Sage X3 is built to maximize your productivity. It helps you reduce total acquisition cost, maintain equipment’s, and adhere to environmental safety regulations. Sage X3’s Enterprise Asset Management module enables reducing costly downtime and keeps the fleet and equipment in perfect working condition.

3. Customized Configuration for Analysis and Production : Sage X3 offers scalable and comprehensive solutions for development, exploration, and production in the Oil & Gas industry. The best part is that multiple local partners are available globally to help you set up operations. As a result, Sage X3 is a comprehensive suite of applications for all Oil & Gas industry-related operations as it facilitates rapid deployment.

4. Inter-company Transactions : ​Sage X3 provides standard management rules and a single frame of reference that facilitates a multi-company, multi-legislation, and multi-site structure. It automatically generates purchase flows and inter-company sales that provide a comprehensive view of operations. This software allows Oil & Gas companies to minimize errors in inter-company transactions, increasing profitability and efficiency in the long run.

5. Data Analytics for Costing, Production, and Sales : Sage X3’s data analytics module allows executives, managers, and CXOs to create meaning from data. It also provides a clear picture of all the business activities, including operations, sales, and cost analysis on a single dashboard. In addition, this software offers a comprehensive and unified view by collecting and analyzing data from multiple sources.

Thus, boost your processes and performance with the efficiency and reliability of Sage X3, the modern day ERP solution in India and bid farewell to fatal errors and hazards harming your business. So grow indefinitely with the scalable to your needs and a secure ERP service for Oil and Gas Industry and get to the top with ease.

Sage Software Solutions is a leading IT company with an array of advanced ERP software solutions. Our proprietary products — Sage X3 and Sage 300 will help you cut your operational expenses, improve business productivity, increase operational efficiency, forge robust customer relationships, and strengthen association with vendors, suppliers, and distributors. So, if you are looking to reinforce your business fundamentals and emerge as an industry leader, then please schedule a call with one of our sales representatives.

Get the Outstanding ERP Software for Oil & Gas Industry from Us…

To know more about Sage X3 Software for Oil and Gas Industry, contact us here. You can also or drop us a mail at sales@sagesoftware.co.in for free demo and consultations.

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