Oildex Responds to Industry Cost Control Needs with Launch of New Field Ticket Technology
OpenInvoice Field Ticket enables oil & gas companies to regain profitability, saving more than $10M a year with invoice automation & real-time field spend visibility
DENVER, Aug. 29, 2016 – Oildex, a service of Tranzap Inc., and the leader in oil and gas financial supply chain technology, announced today the introduction of a critically needed solution to close the inefficiency gap in energy field operations with the launch of OpenInvoice™ Field Ticket.
Primed to save the oil and gas industry potentially billions of dollars in wasted time and money, OpenInvoice Field Ticket eliminates disconnected paper processes by bringing the ease of cloud-based field ticket document collaboration directly to the oil and gas well site.
While business automation already plays an important role in most office environments, older, laborious paper-based processes are still widespread throughout field operations. This not only translates to tremendous lost time and inefficiency, but prevents upstream energy companies from managing projects to budget given the lack of visibility into field costs.
“Oil and gas companies struggle with an incredibly complex supply chain that can make it extremely difficult to deliver projects on time and within budget,” said Michael Weiss, chief technology officer at Oildex. “OpenInvoice Field Ticket brings to the market the most important improvement needed at this exact moment in time – the ability to make smarter, more informed decisions with real-time field knowledge.”
Without OpenInvoice Field Ticket, the manual processes still faced by most field workers and office managers in the oil and gas industry would surprise modern-day workforces. Suppliers and others providing work or services at a well site must complete a paper field ticket by hand, then track down the appropriate supervisor on site who can approve their ticket. This labor-intensive, manual process forces companies to endure an average 22-day delay between the service being performed and an invoice being received, greatly slowing down the ability to analyze costs and manage budgets.
“This field ticket technology has the potential to be a game-changer in the large-scale upstream oil and gas sector,” said Jimmy LeFever, Director of PayStream Advisors. “Given an average savings of $7 per field ticket in labor, PayStream Advisors, a Levvel Company estimates an average savings of 4.1 cents per barrel of oil produced, totaling approximately $840M in savings for the top 10 producers alone. Coupled with an ability to pay invoices earlier that offer early-payment discounts, this savings further increases to over $1.4 Billion in savings to those top 10 providers.”
With the financial challenges plaguing the oil and gas industry in 2016, the true cost of legacy field processes can no longer be ignored, as the gains achieved from field automation could be the make or break factor for upstream providers achieving profitability, specifically:
Real-Time Spend Visibility: True visibility into a project’s costs and real-time awareness of changes to committed job spend
- Implication: Accounts payable and well managers can do their jobs as intended; controlling costs and managing budgets without the average 22-day blind-spot into spending that decimates profitability
Invoice Reconciliation: Invoices are automatically reconciled and validated against field tickets, allowing Accounts Payable (AP) to focus only on exceptions
- Implications: Save time and effort for AP, thereby reducing the labor cost associated with invoice reconciliation, and enabling AP teams to invest time on higher-value functions. Meanwhile, Field Supervisors spend 50% less time doing paperwork, and more time running your business.
Invoice Automation: Reduce invoice cycle time creating a more streamlined process allowing a customer to approve and pay invoices quicker, ultimately allowing them to capture more discounts
- Implication: OpenInvoice Field Ticket reduces invoice cycle times by more than 50%, enabling operators to take advantage of early-pay discounts. If an operator obtained early-pay discounts on just 25% of their field tickets, it would translate to over $1 Million in annual savings.
Suppliers Use Tool of Choice: OpenInvoice Field Ticket works seamlessly with suppliers’ existing reporting technology systems, allowing field ticket data to flow directly into OpenInvoice
- Implication: by allowing suppliers to use their tool of choice, we eliminate the barrier of the supplier having to adopt new technology. They can continue to work with the technology they have in place today.
Reduced Risk of Errors: Drastic reduction in data entry errors by automatically copying all cost object and coding data entered by a customer from the field ticket to the invoice
- Implication: Electronic processing of field tickets is estimated to reduce ticket processing labor costs by 67%, producing a savings of $6.44 per field ticket. This means electronic field tickets have a profound impact on the bottom line, returning savings of $644,000 for every 100,000 field tickets processed.
Focus on the Job with Fewer Interruptions: Automatic routing of the field ticket to the correct person for approval via any internet-enabled device (phone and/or tablet) to review, code and approve field tickets from anywhere at any time
- Implication: Field supervisor is not interrupted by the supplier needing approval allowing them to focus on the safety and management of the site and complete the approval process when it is convenient for them.
“Oil and gas companies are suffering, and are looking for any and every way to reduce production costs. They are desperate for technology powerful enough to move the needle off of losing to restoring profitability,” said Weiss. “Oildex has been partnering with our clients and the industry at large, recognizing that field ticket automation could for many be the linchpin that shifts them to profitability. That kind of change has never been more critical than it is today for the continued success of the North American oil and gas economy.”
For more information or to request a demo and find out what your company could save, visit http://www.OilandGasGameChanger.com.
Oildex transforms the way oil and gas companies manage their financial operations. As a market leader and innovator of cloud-based solutions for oil and gas financial supply chain automation, Oildex provides functionality that is built for the industry, eliminates paper-based processes, and provides analytics for greater financial insight. The Oildex technology platform includes: digital and scanned invoice processing (OpenInvoice™), owner relations web portals (Owner Relations), royalty check stub detail and reporting (CDEX), joint interest bill processing (JIB), crude oil data exchange (CODE), gas plant document exchange (GPEX), production and sales volume reporting and much more. Oildex is headquartered in Denver, Colorado with offices in Houston, Texas and Calgary, Canada.