Schlumberger and Ariba: Transforming Procurement in the Oil and Gas Industry

Schlumberger, a titan in the oil and gas industry, has significantly streamlined its procurement processes through its partnership with SAP Ariba. Ariba’s suite of cloud-based procurement solutions has become an essential tool for Schlumberger, impacting its global supply chain operations’ efficiency and agility.

What is Ariba?

SAP Ariba is a comprehensive procurement platform offering solutions across several stages, including:

• Sourcing: Finding and evaluating new suppliers.
• Contracts: Negotiating and managing supplier contracts for goods and services.
• Procure-to-Pay (P2P): Automating order processing, invoicing, and payments.
• Supplier Network: A vast network where businesses can connect and collaborate.

Schlumberger’s Journey with Ariba

Schlumberger has strategically adopted Ariba solutions to optimize its complex procurement needs. Some critical benefits experienced by Schlumberger include:

• Streamlined Sourcing: Ariba facilitates organized sourcing events, such as RFIs, RFPs, and auctions. This leads to better identification of suppliers that meet Schlumberger’s quality and cost standards.
• Enhanced Contract Management: Ariba’s centralized contract repository ensures consistency, efficient contract negotiation, and compliance while helping control potential risks.
• Digitized Procure-to-Pay: By automating invoices, purchase orders, and payments, Ariba significantly reduces processing time and errors associated with manual tasks.
• Improved Supplier Collaboration: The Ariba Network fosters a seamless environment for supplier interaction, streamlining communication, resolving issues, and strengthening relationships.
• Real-time Spend Visibility: Ariba provides powerful analytics, giving Schlumberger clear insights into its spending patterns. This enables better decision-making and identification of cost-saving opportunities.

The Ripple Effects: Beyond Internal Benefits

Schlumberger’s Ariba implementation has also positively resonated with the company’s suppliers:

• Easier Onboarding for Suppliers: Ariba’s standardized processes make it easier for new suppliers to get up and running and do business with Schlumberger.
• Transparent Communication: The platform provides a structured environment for suppliers to interact with Schlumberger, reducing ambiguity and improving response time.
• Opportunities for Growth: The Ariba Network expands suppliers’ reach, making them visible to a broader marketplace of potential buyers.

The Future: Continuous Innovation

Schlumberger and Ariba’s collaboration is an ongoing story. The oil and gas industry is continuously evolving, and these companies are committed to harnessing emerging technologies within the procurement space. The focus will likely be on areas like:

• Artificial Intelligence (AI): AI-powered tools within Ariba can further enhance spend analysis, supplier selection, and proactive risk identification.
• Blockchain technology integrated into Ariba could promote greater traceability and transparency across the supply chain.

Conclusion

Schlumberger’s adoption of Ariba signifies a commitment to modernizing procurement practices. Through this technological innovation, Schlumberger continues to improve its efficiency, reduce costs, and strengthen supplier relationships – ultimately contributing to its enduring success in the competitive oil and gas sector.