Costs & Strategic Sourcing
Delivering solutions that support sourcing decisions and help clients manage costs across the oil, gas and power value chains.
IHS Costs and Strategic Sourcing services deliver analysis and insight into activities throughout the value chain, enabling clients to efficiently manage the sourcing of project materials and services, the operating and capital costs and the spending strategy to achieve a decisive and sustainable competitive advantage.
IHS Costs and Strategic Sourcing (C&SS) solutions provide timely and objective cost, spend, and deliverability data, analysis, and forecasts on more than 30 categories of critical E&P capital equipment and services. Managers of supply chains, procurement, and spend by category; analysts and market intelligence professionals all benefit from C&SS information and insight to ensure more predictable project deliveries, better sourcing/procurement decisions, and improved bottom-line savings.More Less
Who uses IHS Costs and Strategic Sourcing solutions? How?
- Supply chain and category managers and analysts
- Project procurement
- Strategic planners and lead cost estimators and planners
- Supply chain planning, sourcing strategy development and supplier relation management
- Sourcing, procurement and contracting strategy planning and execution
- Monitor, forecast and manage major capital investment and operating costs
Challenges within the market
The scarcity of skilled labor has boosted wages worldwide. Projects that were economically viable a year ago may no longer be attractive, as the costs of building upstream oil and gas facilities may continue to rise over and above inflation for the foreseeable future. Premium steels are no longer readily available in some markets. In others, rig rates have shot up drastically in response to the growing number of well programs.More Less
IHS Costs and Strategic Sourcing helps clients with:
Cost monitoring and planning:
- Measure your company's cost performance against the industry benchmark
- Determine the key drivers for costs
- Forecast project and operating cost development
- Assess regional and country-level differences and requirements
- Create cost development scenarios
Strategic sourcing and category management:
- Identify supply bottlenecks and opportunities
- Manage lead times and capital equipment deliveries
- Develop sourcing strategies per critical spend category
- Break down costs by category
- Assess and track suppliers
- Understand your bargaining position
- Identify and assess the commercial models
- Understand underlying cost component developments
- Negotiate contract escalation clauses
- Manage local content requirements
Why use IHS Costs and Strategic Sourcing solutions?
Could your business benefit from access to strategic spend analysis while managing costs in a suppliers market?
IHS Costs and Strategic Sourcing will help you evaluate the signposts of market shifts, identify the most important drivers of market and category price movements, and importantly obtain the insight to take corrective action to minimize commercial impact.
We can help you navigate the options, such as whether to lock in crew and equipment for smooth operations or to consider spot market purchasing services in fluctuating market conditions. Then we show you how to evaluate the challenges associated with sourcing quality and reliability.
As service providers take advantage of the tight market, operators must manage the cost and spend risks of long-term investment plans and operational improvement programs. IHS can help operators mitigate this risk by delivering in-depth analysis, regular industry and market updates by category and the insight to support informed decisions.
For more information,
+1 800 447-2273
Europe, Middle East & Africa
+44 (0) 1344 328 300
+65 6439 6000