Advances and opportunities for E&P supply chain management functions in the US onshore

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Continue improving capability in S2P activities

As Energy companies continue adjusting to a “lower for longer” oil price environment, supply chain management (SCM) organizations are expected to up the ante in the value they provide, driving visible cost reductions throughout the organization. 

For SCM functions in the US onshore exploration and production (E&P) segment in particular, the downturn has proven especially challenging due to significant headcount reductions relative to overall activity.

Drive adoption of P2P automation investments

Of the 72 percent of study participants who have fully implemented e-invoicing, more than three-quarters still rely on manual invoicing, meaning participants are not fully using the system they invested in. The reliance on manual “invoice-only” transactions suggests the need to drive adoption of automated solutions across the organization.

Organizations that use technology enablers tend to experience greater spend on contract and higher cost savings than their peers who do not.

Embedding leading practices is key to sustainment

SCM organizations that own the complete PO process have an average 63 percent greater spend on contract than organizations where business functions can process POs. The same respondents also boast 24 percent greater 2016 savings, on average, across key categories of spend, demonstrating that SCM organizations who fully execute the procurement process yield greater cost savings.

Contact us

Mike Scheller

Principal, PwC US

Pete Domanko

Advisory Director, PwC US

Brian Delaney

Advisory Partner, PwC US

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