Key Benefits of ERP for Oil and Gas Companies

Key Benefits of ERP for Oil and Gas Companies

The oil and gas industry is one of the most complex and challenging industries in the world. In order to be successful, companies in this sector need to have a high degree of control over their operations. This is where Enterprise Resource Planning (ERP) systems can be extremely beneficial.

An ERP system provides a comprehensive view of an organization’s operations, from upstream activities such as exploration and crude oil production, midstream, such as crude oil transportation to downstream activities such as refining and distribution. This allows oil and gas companies to manage their businesses more effectively and efficiently.

What are the Key Benefits of ERP for Oil & Gas Companies?

Improved Coordination 

An ERP system can help to improve communication and coordination between different departments within an oil & gas organization. For example, the exploration department can share data with the production department which means they can work together on projects ensuring all stakeholders have full visibility over exploration efforts.

Increased Operational Efficiency

An ERP system can help to streamline operations and increase efficiency. For example, it can automate tasks such as invoicing and inventory reporting, ensuring critical business tasks are completed with modern automated and streamlined processes. This can free up employees’ time so that they can focus on higher-value tasks.

Improved Decision-Making

An ERP system provides managers with access to real-time data about all aspects of their operations and department. This allows them the ability to make more informed decisions about how to run their business units to increase the chance of meeting critical KPIs and business goals.

Reduced Overhead Costs

An ERP system can help to reduce costs by using technology to automate and streamline tasks and processes that otherwise would have required employees to complete. One of the biggest cost savings oil and gas companies report after implementing ERP is a reduction in the total required workforce to keep critical business functions running.

Improved Customer Service

An ERP system can help to improve the level of customer service your company provides. For example, by tracking and managing customer orders, you can ensure that they are processed and delivered in a timely manner. Additionally, by having a complete 360-degree view of your operations, you can quickly resolve any customer issues that may arise.

What is the Best ERP System for Oil & Gas Companies?

The best ERP system for oil & gas companies will depend on the specific needs of the organization. However, there are a few key features that all good ERP systems for this industry should have:

Upstream operations management: The ability to track and manage all upstream operations, from planning and prospecting to exploration and production.

Midstream Operations Management: The ability to track and manage all midstream operations, from transportation to refining.

Downstream Operations Management: The ability to track and manage all downstream operations, including distribution to customer service.

Real-time data and analytics: The ability to provide managers with access to real-time data about all aspects of their operations.

Automation and workflow management: The ability to automate tasks and processes to improve operational efficiency.

Flexibility and scalability: The ability to easily scale the system as your company grows and changes.

Key ERP Modules for Oil & Gas Companies

Oil & Gas companies require a range of modules and features to meet the needs of the various business departments including, production, logistics, accounting and finance, sales, warehouse and inventory management, and manufacturing.

Supply chain management: The ability to track and manage the entire supply chain, from suppliers to customers.

Inventory management: The ability to track and manage inventory levels, including materials, finished products, and spare parts.

Asset management: The ability to track and manage all company assets, including equipment, vehicles, and buildings.

Customer relationship management (CRM): The ability to track and manage customer orders, invoices, and payments.

Project management: The ability to track and manage all aspects of projects, from planning and scheduling to execution and completion.

Accounting and finance: The ability to track and manage all financial data, including invoices, payments, and journal entries.

Sales and marketing: The ability to track and manage sales data, including customer contact information, leads, and opportunities.

Human resources: The ability to track and manage employee data, including time off, benefits, and performance reviews.

Manufacturing: The ability to track and manage all aspects of the manufacturing process, from raw materials to finished products.

NetSuite for Oil & Gas Companies

NetSuite is a cloud-based ERP system that offers all the features and functionality oil and gas companies need to manage their businesses. NetSuite is flexible and scalable so that it can grow with your company.

NetSuite has been leading the cloud-ERP race since 2001 and has fast become one of the most chosen solutions for the oil & gas industry. NetSuite also offers a modern integration framework that makes it possible to connect oil & gas businesses to other applications providing a seamless flow of information in real time.

Accounting Software for Oil & Gas

NetSuite offers a comprehensive set of accounting and financial management features to ensure that an oil & gas company’s books are always in order. The system includes General Ledger, Accounts Payable, Accounts Receivable, and Billing & Invoicing. Financial reporting is also made easy with NetSuite’s financial dashboards and real-time visibility into the organization’s financial performance.

Budgeting & Forecasting for Oil & Gas

In addition, NetSuite’s integrated budgeting and forecasting solution offer oil & gas companies a way to track actuals against budgets and forecast future needs. The system includes features for managing CAPEX, OPEX, and working capital.

Project Management for Oil & Gas

Oil & Gas companies need to be able to manage their projects from start to finish, and NetSuite’s Project Management module offers all the tools necessary to do just that. The module includes features for project planning, task management, resource allocation, and project billing and job costing.

MRP for Oil & Gas

The NetSuite Manufacturing module offers a complete set of features for managing the manufacturing process, from material requirements planning (MRP) and capacity planning to product configurator and bill of materials (BOM). The module also includes quality management, work order management, and inventory management features.

Supply Chain Management for Oil & Gas

NetSuite’s Supply Chain Management module offers oil & gas companies the ability to manage their supply chains from end-to-end. The module includes features for procurement, vendor management, and inventory management. It also includes a warehouse management system (WMS) and a transportation management system (TMS) to help companies optimize their supply chain operations.

CRM for Oil & Gas

The Customer Relationship Management (CRM) module offers oil & gas companies a complete set of features for managing customer data, including contact information, leads, and opportunities. The module also includes marketing automation, sales force automation, and customer service features.

Zanovoy: Experts in NetSuite Oil & Gas Solutions

We have worked with a number of Oil & Gas companies to scope extended solutions for Oil & Gas companies with NetSuite‘s Development and Customization tools, aligning the solution even closer to the exact needs of the industry.

Some of the Industry-Specific Solutions we have scoped on NetSuite for our clients include:

  1. An Integration with exploration software that tracks land data, well data, and seismic data.
  2. A solution for managing multiple entity types including Producers, Non-Operated Working Interest Owners, Operators, and Royalty Owners.
  3. A solution for managing the unique needs of Marine Vessels including Maintenance, Repair, and Overhaul (MRO), as well as compliance with maritime regulations.
  4. A solution for managing the production and storage data associated with Crude Oil, Natural Gas Liquids (NGLs), and Natural Gas.

If you would like to learn more about these solutions or discuss how we can help your company, please contact us for an obligation free discussion and to learn more about how we can benefit your company today. 

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