The highly volatile Oil and Gas industry is exposed to crisis time and again which tends to threaten even organizations that are known to be most stable. The constantly fluctuating market can create conditions where there is an increase in supply but the demand can be comparatively low or vice versa. Matters can take a turn for the worse when issues pertaining to operational excellence crop up. While the concept of operational excellence is not a parlance that is unheard of in the Oil and Gas sector but the conditions that prevail within this sector can largely influence it. The Oil and Gas sector is under consistent pressure that arises out of external economic factors where much emphasis is laid on a higher level of operational efficiency and bringing down operational costs to a large extent. At the same time the sector is also under obligation to ensure that there is no compromise on the Health, Safety, and Environment and Quality (HSEQ) aspect.
Nonetheless, even in the face of adversity, the sector can harness the technological developments that present them with innovative techniques and tools which can be used to effectively amass information and utilize it in a manner that facilitates the operations to be streamlined. Leveraging the latest tools and technologies can enable industry players to optimize their production and bring down their operational costs at the same time.
SBC General Trading and Contracting Co., W.L.L. (SBC), Kuwait is a key player in the Oil and Gas Construction sector. But they were experiencing difficulties when it came to maintaining the required levels of operational excellence. In particular, the issues they faced included managing and maintaining proper documents. As a matter of fact, at one point of time they realized that there was duplication in their invoices related to sales and purchase. They were also finding it extremely challenging to maintain documents in hardcopy as it involved extensive paperwork, filing and also raised issues in storage of the documents. In addition, there was a huge amount of cash flow involved in all financial transactions which presented challenges in accounting.
The company approached Agaram InfoTech for an Oil and Gas ERP software solution that would help them to streamline their operational procedures while adding innovation to their overall operations. Agaram InfoTech presented SBC General Trading and Contracting Co., W.L.L. (SBC), Kuwait with a customized Oil and Gas ERP software that turned out to be of immense help to SBC Kuwait. The ERP software not only enabled them to overcome their challenges but it also helped them to bring down the overhead costs. The ERP software offered by Agaram InfoTech included the following modules :
The purchase management module presented by Agaram's ERP software was instrumental in helping SBC Kuwait to streamline their procedures related to purchase of raw materials, sub-assembly and non-inventory materials. The ERP software also helped SBC Kuwait to automate the process through which they were able to identify potential suppliers, evaluate suppliers, award the purchase order to suppliers, billing procedures and efficiently manage their contracts. With the help of ERP Software from Agaram, SBC Kuwait was also able to generate invoices that were effective and accurate while enabling users to alter the scope of the contract.
The inventory management module of Agaram's ERP software facilitated the department handling inventory within SBC Kuwait to record relevant data. Other activities such as delivery and receipt of goods, material maintenance within the stock section were also eased. It also helped them to classify and segregate their inventory, effectively handle the issue of materials while recording any materials received from suppliers that were rejected.
HR and Payroll
This module offered through the ERP Software presented by Agaram aided SBC Kuwait to streamline their efforts in managing the human resource functions which included efficiently disbursing salaries in a timely and meticulous manner. The HR and Payroll module offered by Agaram essentially comprised of four key sections such as recruitment, payroll, attendance and training. This module also enabled SBC Kuwait to generate instant reports from their sites using bio-metric integration. The module is structured such that it has the capability to generate payroll for around 2000 employees.
With the help of the administration module within the ERP software, SBC Kuwait was able to define diverse levels through which information could be accessed by its employees. This was facilitated through the creation of particular user groups. The administration module was particularly beneficial in managing the visa application process.
The accounts management module offered through Agaram InfoTech’s ERP software streamlined the financial process at SBC Kuwait. It allowed them with the flexibility to effectively manage their cash flow process by recording day to day transactions. The ERP software enabled the organization to work out the overall project costing and estimates. The accounts module also presented SBC Kuwait with financial functionality and endowed them with the capability to analyze and keep a track of their transactions.
The maintenance module offered SBC Kuwait with a cohesive solution that helped them to maintain their operational efficiency. It enabled the organization to monitor the performance of their equipment and vehicles and schedule timely and periodic maintenance that helped them to prevent an inadvertent breakdown in equipment or vehicles that could grossly hamper their day to day operations.
Tender – Bid
The tender-bid management module in the ERP software extended by Agaram facilitated SBC Kuwait to effectively manage their end-to-end tender-bidding process. This module allowed SBC Kuwait to prepare, invite and analyze tender-bids. This module offered the organization with a flexibility facilitating the module to be integrated with MS-Excel thereby enhancing functionality. It is also equipped with a tracking mechanism that helped them monitor the progress of the tender-bid.
This module presented SBC Kuwait with a plethora of options with regards to effectively managing payments of sub-contractors. The module comes equipped with a robust billing system that generates bills periodically on the basis of work executed, allowing the management of payments in a seamless manner. It also offers a platform through which constant and clear communication is facilitated between SBC Kuwait and their sub-contractors.
Project Management System
The project management module offered by Agaram was specifically beneficial for SBC Kuwait as they were able to manage and monitor the progress of all their projects. This module facilitates the integration of data pertaining to projects such as orders for change and contracts within systems for job costing and accounting. This mitigated the risk for duplicity and helped in prevention of double entries. The module also facilitated any updates to be maintained on the basis of dates which allowed any alteration in the period of the project to be highlighted and analyzed.