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.
IHS monitors and collects data and forecast information about project and operating costs for offshore and onshore field developments, as well as downstream oil and gas and power projects. Clients receive timely, objective, third-party information about prices, costs, market fundamentals and forecasts, enabling them to stay current on competitive terms and deliverability, on which suppliers are the best fit for strategic relationships and on how to gain leverage in negotiations. IHS Costs and Strategic Sourcing is a comprehensive service for businesses that need to evaluate program-level data and weighted matrix criteria, providing insight into successful management in challenging supplier markets and cost environments.
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.
In the current climate of extreme market volatility and economic uncertainty, can your company afford not to have C&SS critical information and insight regarding supply chain and project costs?
Understanding costs, spending and supply bottlenecks and opportunities dramatically affects an organization’s ability to execute its E&P plan and manage operational needs. IHS Costs and Strategic Sourcing services deliver analysis and knowledge of the wide range of required capital and operating categories in the oil and gas and power business landscape to enable clients to respond quickly and effectively to changes in the market.