Over the years, EnergyPoint has collected literally tens of thousands of customer evaluations of oilfield suppliers. We’ve stuck to our mission because we believe it adds a needed degree of transparency to the industry’s supplier-performance picture.
It has also afforded us some unique insights, including understanding ways customers can proactively influence the performance of their suppliers. Here’s some of the ways that stand out:
- Think long-term: Performance experts will tell you that by removing uncertainty from any process there’s a good chance you’ll boost quality. Hence, the more stable, predictable and standardized the work flows you can provide your suppliers, the greater the chance you’ll get results to your liking. But be smart. Don’t bestow your best long-term assignments upon just any supplier. Reserve them for those vendors that have earned them based on past performance.
- Don’t be a miser: No one wants to work for peanuts. Asking suppliers to do so will almost assuredly get you something less than their best. Instead, use the promise of sharing in your success as enticement toward better performance. We all want value, and lot’s of it. So, be willing to pay when it’s there. And resist the temptation to fixate only on price.
- Focus on results: The best performing suppliers know how to do their jobs well. Accordingly, they generally tend to communicate more with actions than words. Lower-performing suppliers tend to try to convince you how good they are by telling you so. This “talk time” costs you opportunity and money. In short, get your suppliers focused on performance — not conversation.
- Measure what matters: Most oilfield participants focus on non-productive time (NPT) and safety-performance metrics when measuring supplier performance. But dimensions like flexibility, quality, professionalism, post-sale support are just as important to success. One of the best ways to gather data in these areas is to participate in EnergyPoint’s surveys. We independently track and report supplier performance on dozens of segments, thus helping suppliers identify areas needing improvement.
- Keep things grounded: We live in a world of almost farcical hype. It’s everywhere. Unfortunately, it’s far from harmless. Suppliers that intentionally overstate their capabilities put your reputation at risk. If a supplier has a habit of peddling empty promises and outsize claims, put them on notice. If they fail to correct their ways, don’t encourage further bad behavior by sending them more business — find an another provider.
Suppliers play an important role in all parts of the economy, but they’re particularly vital to the oil and gas industry. Companies with the best-performing suppliers clearly position themselves for lasting competitive advantage. Is this your company?
• Measure What Matters: Er . . . Quality matters, but is usually measured in the negative, e.g., how many write-ups your team garnered. BALDERDASH! Define quality metrics that MATTER!
• Think Long-term: Well, yes: Like more than 18 months. How about predicating longer-term contracts upon PERFORMANCE, eh?
• Keep Things Grounded: Well, HEY! Let’s remember that our profession is TELEOLOGICAL, meaning that we KNOW where we are a-going, eh? Let us not allow our catfish mouths to overload our mosquito hindquarters.
• Measure What Matters: Er . . . Quality matters, but is usually measured in the negative, e.g., how many write-ups your team garnered. BALDERDASH! Define quality metrics that MATTER!
• Focus on Results: Yes, and clearly define what the desired results are. And furthermore, who is your audience? A pack of fellows who learned all they “know” from books at engineering college, or boys who learned at an uncle’s elbow? Big difference, Boss. And a big difference in results in the field too.
• Don’t Be A Miser: Right! Today’s energy clients believe — or sure seem to believe — that they can get billions for peanuts. ‘Taint so. The supplier, and your contractors and subcontractors, will at least STRIVE to get even. Don’t create your project structure installing the threat of knives in your back.
Your favorite grouch,
Austin