Performance & profitability series
7 Ways to increase the performance of
Oil & Gas Field Services Companies
Determined from our work with clients in the industry
and speaking with industry experts.
1) Schedule equipment, vehicles and crews to maximize utilization. Software should provide for quick viewing of usage history and unused capacity, so gaps can be easily identified and filled when possible.
2) Negotiate long term contracts where possible, show you are a trusted business partner by consistently meeting contract billing requirements. Assure invoices are accurate to speed approval and cash flow. Software should support:
- Level of detail required by operator,
- Accurate site, lease, well, rig, AFE information,
- Correct pricing specified in the contract,
- Proper sales tax and approved cost codes as needed,
- Electronic submission of invoices
3) Assure you can meet promises to customers and avoid double booking. Software should be able to track the availability schedule and location of your equipment, vehicles, and personnel at all times.
4) Establish incentive pay compensation to motivate performance, reduce fuel costs, optimize routes, schedules, etc. Software should support:
- Timely performance feedback, with real time revenue, cost, & profit statements, throughout the month, and
- Itemized revenues, costs, and profits by location, yard, vehicle, equipment, crew, well, job, or other level, and accomplish this without dependence on a large, unwieldy chart of accounts.
5) Vertically integrate where possible to reduce dependence on resources provided by vendors. If applicable, build your own specific equipment for use in the field, for sale, or for rent. Software should accommodate:
- Unique serial numbers of equipment and components, and
- Manufacturing of equipment for sale or fixed assets for rent.
6) Resist increasing overhead in sales, administration, and back office fuctions.
- Automate preparation of quotes, estimates, and price sheets where possible. Assure contract prices are stored and retrieved during quote preparation for existing customers. Develop a process to ensure products and ancillary services related to the primary function are not inadvertently ommitted from proposals.
- Provide staff with efficient (preferably single screen) entry of service tickets and invoices together rather than as two or more data entry steps.
- Allow entry of field services billing to automatically default the proper equipment and crews while providing the appropriate level billing to the customer.
- Eliminate re-keying time into payroll. Integrate with payroll module, separate payroll software, or outside payroll service.
7) Keep vehicles and equipment maintained to maximize up-time. Software should enable:
- Setting realistic capacities allowing time for preventive maintenance, and
- Keeping accurate maintenance records.
We hope we have provided performance ideas which you can quickly take advantage of.
Our company founder started his career designing software at Exxon and now his team helps small to mid-sized oil & gas field service providers improve their performance.
Responding to client needs we developed enhancements to Microsoft Dynamics NAV ERP software specifically for oil and gas field service providers.
If your back office software is holding you back, we should talk. A short call to one of our industry business analysts will best help us to address your specific questions.