Optimizing the Supply Chain in Unconventional Oil and Gas – Part 2
In the first entry of this blog series, we examined a few examples of how unconventional operators can face variability and challenges while designing and implementing their supply chains. These examples included geographic and locational challenges, the need for integration, the move to multi-well pads, and transactional business practices. Even with these few examples of the challenges faced in this arena, it is clear that operators are faced with a pace and complexity unparalleled by that experienced in the conventional space.
Many operators are looking to shift towards more of a manufacturing mindset and factory-like mode of operation with standardization of processes driving higher predictability to appease ever more demanding shareholders. This approach will undoubtedly bring great benefits however the fact remains that integration and coordination across the supply chain is vital to deriving the maximum value for the business.
Achieving excellence in SCM requires taking a holistic view of the end-to-end value stream and beyond, continuously looking at ways to reduce waste, variation and complexity. This all-inclusive view of the organization must start at the top with alignment on universal goals. Leaders must take off their functional hats and ensure that this integrated way of doing business permeates throughout. That thinking must expand outside the value chain of the focal organization to suppliers’ suppliers and customers’ customers, and from headquarters to the field. The reward is the steady, reliable and cost-effective supply of materials and services to a predictable, repeatable and sustainable performing operation, challenging itself to continuously improve.
Successfully reaping these rewards requires an approach that considers and involves all players and layers within the Organizational Space™. People will support what they are involved in building. Leadership must create the right environment and provide the information, tools, models, systems, training, coaching and feedback to help the organization succeed.
Julie is a senior management consulting professional with over 15 years of operational excellence experience working with the Fortune 1000, across a wide range of industry sectors in North America, Africa, the Caribbean, South America and Europe. Julie has worked with multiple clients to achieve sustainable and transformational improvements in their businesses.