Since going live with the Commerce One procurement solution in 1999, Schlumberger, the world's largest oilfield services company, has grown its e-procurement initiative from an ambitious plan to a real-world, global system that supports more that 6 000 users across 83 countries. Schlumberger, which offers virtually every type of service required for the exploration and production of hydrocarbons, has passed over $2 billion of orders through its procurement system.
"We've always had very high expectations for our systems and this drive has helped fuel our success," says Alain-Michel Diamant-Berger, manager of procurement and logistics business systems for Schlumberger Oilfield Services. "The system is delivering the anticipated transaction cost savings, improved productivity and error reduction."
But Schlumberger isn't resting on its laurels. The company is working with Commerce One again, this time to automate the RFQ process for its special request purchases, using the Commerce One Conductor platform, a standards-based Composite Application platform designed to connect and compose business processes between systems and partners.
Special request purchases are those items not found in the suppliers' online catalogues. Schlumberger generates a large number of special requests - anything from occasional highly technical items to locally procured services - and these purchases sometimes carry a high level of urgency. Historically, sourcing of products not included in online catalogues required a special requisition process that was handled manually by a professional buyer. But the company has found this process to be inefficient and error-prone.
"When special request orders come in, buyers currently have to manually process the RFQs, which includes browsing through printed catalogues, identifying and contacting suppliers, comparing prices and availability, selecting the source and updating the e-procurement system," says Diamant-Berger. "We are discovering how Conductor can automate this business process and integrate it seamlessly into the overall purchasing process."
Specifically, Conductor will assemble standards-based businesses processes so that buyers can create RFQs for special request items with no re-entry required. They will be able to modify, change and enhance these RFQs and send them out electronically to specified suppliers. With all of this in place, they will have the ability to compare costs in an automated fashion and award the winning response in real-time.
By integrating the special request RFQ process into its larger procurement system, Diamant-Berger expects to save the time that would otherwise be spent preparing, comparing and awarding RFQs and make better sourcing decisions, thereby reducing the cost of those items. "Reduced cycle time also decreases the need for keeping an inventory of contingency items that may or may not be used later," explains Diamant-Berger.
The integration of special requests into the e-procurement system will also improve tracking and audit capabilities for special request purchases, giving Schlumberger a more complete picture of its spending. Furthermore, Schlumberger's suppliers will benefit from a simplified RFG response process, faster turnaround time of those requisitions and improved accuracy of the resulting purchasing orders.
"We are always looking for new ways to increasing the benefits of our existing applications and integrate separated business processes into our business systems environment," says Diamant-Berger, adding that the company will be looking at other integration requirements that could be addressed with Conductor functionality.
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