See it, bill it! Reducing revenue leakage and operating costs
Discover how a switch to mobile operations can help oilfield and shale service reduce revenue leakage and operating costs.
What if you could stride into your next board presentation having reduced revenue leakage and operating costs?
With liquidity pressures high on the oilfield and shale services agenda, the squeeze is on for COOs.
Operations teams are seeking evermore innovative solutions to improve efficiency. So it’s pretty remarkable that these efforts are being impeded by a dependence on technology that’s over 2000 years old.
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Paper is not fit for purpose in the 2015 oilfield services industry. It generates error, delay, cost and can easily be replaced by mobile technology. If, as an operations team, you can’t electronically track billable items then you’re leaving cash ‘on the table’.
The ability to capture and review accurate crew hours, equipment rental hours and material consumption is fundamental to accurate billing. Paper job tickets are not up to the task. They are inefficient, and vulnerable to loss and inaccuracy:
- Invoices are delayed by late, mislaid or unauthorized paper job tickets
- Crew hours, equipment rental and material use is under-reported due to bad practice, illegible handwriting or back-office transcription errors
- Paperwork requires unnecessary labor-intensive processing, including chasing down ticket errors and handling customer frustrations.
Mobile apps allow operations to record all hours, equipment and inventory on their smartphone or industrial handheld, and to electronically authorize job tickets remotely.
Tracking equipment usage per project and per crew lets you monitor resource utilization and keep on top of the project – reducing revenue leakage by up to two thirds.
Furthermore, back-office staff can group tickets to generate cost reports and invoices on the same day as job completion. In our experience, switching from paper to mobile apps and real-time billing will reduce back-office costs by at least 50%. As an example, one of our customers achieved same-day cost reporting for over 90% of service jobs and reduced back-office staffing levels from 30 to 3 by introducing PHALANX mobile field service apps.
Of course, the implementation costs and organizational changes required whenever outdated methods are replaced by updated technology must be factored into a business case and you can find a fully-costed example here.
But those who continue to rely on 1st century technology will quickly be left behind by 21st century competitors. For many leading organizations it’s already a question of how and when, not if, they switch to mobile operations.