ERP for the oil & gas sector: features, software & business value
December 17, 2024
ERP for oil and gas enables companies to efficiently manage the complexities of oil and gas exploration, production, refinery, and distribution while improving data accuracy and ensuring compliance with industry regulations.
Itransition implements tailored ERP software solutions for upstream, midstream, downstream and oil field service providers, helping them reap the maximum benefit from adopting an ERP platform.
About Itransition
10+ years of experience in ERP services
50+ completed projects of different scales across various industries
Hands-on expertise in delivering out-of-the-box and custom ERP solutions
Strategic partnership with Odoo, Microsoft, and NetSuite
ERP functionality for oil & gas
ERP functionality depends on a company’s specific needs and goals. Here are some features that ERP software solutions for the oil and gas sector share in common.
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Asset management
Maximize asset performance across the entire lifecycle while preventing costly downtime, maintaining regulatory compliance, and reducing maintenance costs.
- Equipment location and condition tracking
- Monitoring plans and facilities, including offshore rigs
- Real-time view of asset performance
- Automatic alerts of asset status and health
- Condition-based asset maintenance
- Failure analysis and prediction
- Asset lifecycle management and depreciation calculation
- Asset allocation management
- Rental management
Project management
Ensure on-time project delivery and cost control by continuously tracking project progress and efficiently managing human, material, and financial resources.
- Project planning and scheduling
- Project progress monitoring
- Project costing
- Billing and revenue management
- Resource management
- Contractor and subcontractor management
- Service management
- Project analytics
Production management
Deliver high-quality products in the correct quantity, on time and in the most cost-effective way by streamlining exploration, improving production control, and minimizing operational disruptions.
- Production planning and scheduling
- Multi-site production management
- Support of different manufacturing modes
- Production order creation and routing
- Lean, Kanban manufacturing
- Manufacturing cost control
- Work in progress tracking
- Labor management
- Risk management
- Production forecasting
Quality management
Keep track of production processes to handle possible malfunctions and quality issues as soon as possible while minimizing defects and wastage as well as potential hazards to employees and the environment.
- Nonconformance tracking and reporting
- Compliance evaluations and auditing
- Incident tracking and reporting
- Corrective Actions/Preventive Actions (CAPA) control
- Risk assessment and management
- Supplier and contractor management
- Complete audit trail and document control
- Contingency planning
- Monitoring compliance with safe work practices
- Stop Work Authority program implementation control
Supply chain management
Get full visibility into the supply chain, efficiently managing fluctuating demand and complex logistics issues and minimizing supplier risks, all while maintaining regulatory compliance and high sustainability.
- Inventory visibility across the supply chain
- Multi-site and multi-logistics inventory planning
- Inventory and warehouse management
- Supplier relationship management
- Procurement management
- Transportation and logistics
- Demand management
Finance management
Control the company’s finances and make informed decisions to accurately predict revenue and expenses, identify saving opportunities, and reduce operating costs.
- Accounting hub
- Payables and receivables
- Revenue management
- Expense management
- Fixed asset accounting
- Complete audit trail
- Financial performance tracking across multiple locations
- Multi-entity consolidation and reporting
- Maintaining compliance with international, regional and local standards
- Multiple currencies management
Analytics & reporting
Analyze your business data and get comprehensive insights into your corporate workflows to predict outcomes, optimize oil and gas operations, and improve operational and strategic decision-making.
- Real-time data processing and KPI tracking
- Ad hoc and scheduled data analysis and reporting
- Data visualization
- Forecasting production capacity
- Predictive analytics
- Scenario modeling
- Finance, supply chain, and production analytics
- Financial reporting
Choose Itransition to implement ERP that fits your needs
Best off-the-shelf ERP software on the market
Key features
- Manufacturing management
- Production quality management
- Equipment and fleet management
- Repairs management
- Human resources management
- Project planning and controlling
- Procurement and subcontractor management
- Contact management
- Land acquisition and development
- Fleet management
- Inventory management
- Invoicing
- Purchase management
- Sales management
- Accounting and finance
- CRM
Best for
- Small companies
- Mid-sized companies
Pricing
- Per user per module monthly fee
Deployment
- SaaS
- PaaS
- On-premises
Limitations
- Challenging to scale and maintain
Key features
- Demand planning
- Asset management
- Sensor data intelligence
- Procurement
- Production control
- Quality management
- Transportation management
- Cost accounting
- Project management
- General ledger control
- Budgeting
- Cash and bank management
- Tax management
- Financial analytics and reporting
- Human resource management with payroll
Best for
- Midsize companies and enterprises
Pricing
- Standard and Premium licenses depending on the functional scope of applications
Deployment
- Cloud
- On-premises
Limitations
- Complex and time-consuming configuration and customization
Key features
- Workforce planning and reporting
- Financial management
- Fixed asset management
- Production planning
- Project management
- Supply chain management and inventory control
- Sales management
- HR management
Best for
- Small companies
- Medium-sized companies
Pricing
- The final pricing depends on the license type (Essential or Premium) and the number of active users
Deployment
- Cloud
- On-premises
Limitations
- The partner ecosystem is too wide
Key features
- Finance management and accounting
- Human resources management
- Asset management
- Professional services automation
- Supply chain management
- CRM, billing, sales order management
- Opportunity management
- Planning and budgeting
- Revenue recognition
Best for
- Companies of all sizes
Pricing
- Per user per month, depending on the functional modules and the number of users
Deployment
- SaaS
Limitations
- Price hikes in the long run
Key features
- Production management
- Material requirements planning
- Advanced planning and scheduling
- Manufacturing management
- Product configurator
- Inventory management
- Sales order management
- Purchase order management
- Finance and reporting
- Distribution management
- Data collection and automation
- Mobile application
Best for
- Small companies
- Mid-sized companies
Pricing
- Monthly licensing fee
Deployment
- SaaS
- Private cloud
Limitations
- A steep learning curve
- Complicated pricing
Key features
- Supply chain management
- Asset management
- Project management
- Production management
- Quality management
- Kanban lean production
- Lean manufacturing
- Planning and scheduling
- Maintenance management
- Mobile accessibility for field service management
- Financial management
Best for
- Small organizations
- Mid-sized organizations
Pricing
- Per user per month licensing
Deployment
- SaaS
- Private cloud
- On-premises
Limitations
- An emerging reseller network
- Limited CRM & HCM functionality
Key features
- Supply chain management
- Production management
- Material management
- Project management
- Planning and scheduling
- Order management
- Finance and accounting
Best for
- SMBs
- Large enterprises
Pricing
- License fee that depends on the number of users
Deployment
- SaaS
- On-premises
Limitations
- Slightly outdated user interface
Key features
- Supply chain management
- Production management
- Materials management
- Product lifecycle management
- Warehouse management
- Workforce management
- Sales & order management
- Finance control and administration
Best for
- Large enterprises
Pricing
- Subscription fee based on the company size, number of active users, selected modules, and region
Deployment
- Cloud
- On-premises
- Hybrid
Limitations
- Platform implementation incurs substantial organizational change and possible operational risks
How to choose the best ERP system for oil & gas
The choice of ERP software depends on multiple factors, and the requirements for ERP platforms vary from company to company. Here, we have outlined selection criteria to consider when choosing the best ERP fit for your organization.
ERP functionality
ERP functionality
To define the functional scope of your ERP software, consider business processes that should be automated, including those that are not supported by your current enterprise software and workflows that require more visibility.
Deployment options
Deployment options
The choice of the deployment model for your future ERP will depend on your budget, existing IT infrastructure, regulatory requirements, and geographical organizational structure. Сloud-based ERP solutions offer lower upfront costs and greater scalability and flexibility, with the provider of a cloud ERP solution generally handling all updates and maintenance activities. On-premises ERP solutions are installed on a company’s servers and managed by the internal IT team. They usually require higher upfront investments due to hardware and software-related expenses but comply with the strictest security requirements.
Oil and gas companies can also consider going for a hybrid deployment model, combining the flexibility of the cloud and the security of on-premises software.
Integration capabilities
Integration capabilities
Since oil and gas companies usually employ a variety of business software and tools to manage the entire scope of their operations, consider ERP solutions that have extensive integration capabilities. Your future ERP platform should be able to seamlessly connect with your existing software ecosystem using pre-built connectors, APIs, or middleware to ensure uninterrupted data exchange between the systems, as well as data integrity and consistency.
Security
Security
Due to the specifics of the oil and gas industry, select ERP platforms with strong security and data protection mechanisms that go in line with your industry compliance requirements. Look for ERP platforms that support data encryption, multi-factor authentication, and role-based access control mechanisms and receive regular security upgrades and patching from the ERP provider.
Usability
Usability
Your employees’ satisfaction with the new solution will determine the success of the entire ERP implementation initiative. Consider ERP solutions with visually appealing interfaces that are easy to navigate and have a gentle learning curve. Also, look for ERP providers that offer free access to training materials and comprehensive product documentation and provide after-launch customer support on demand.
The total cost of ownership for ERP software
The total cost of ownership for ERP software
The ERP total cost of ownership (TCO) usually includes software licensing, ERP consultancy, and implementation services, user training activities, as well as continuous user support and ERP software maintenance. By calculating the total cost of ERP ownership, you can forecast ERP implementation ROI and the profitability of each ERP option you are considering to select the most cost-efficient platform.
ERP benefits for oil & gas companies
Efficient business process management
Tailored ERP solutions provide instant access to relevant business data for any authorized party, helping them manage core business processes more effectively.
Cost reduction
ERP implementation facilitates the automation of manual activities like production scheduling, inventory monitoring, invoicing, and report generation, considerably reducing operational costs.
Adherence to regulations
Promoting business process standardization and visibility, ERP software helps oil and gas companies achieve their sustainability goals and maintain compliance with multiple health, safety, and environmental regulations, laws, guidelines, and specifications.
Embrace ERP benefits for oil and gas with Itransition
Common integrations for oil & gas ERP
ERP system integration allows oil and gas businesses to synchronize data across their IT infrastructure and get a 360-degree, real-time view of business processes to make better decisions. Here are the top ERP integrations for oil and gas companies to consider:
ERP
CRM
IoT devices
CMMS
HR management system
EDI
BI software
Communication tools
CRM
Integration of sales, marketing, and customer service data into ERP helps oil and gas companies improve relationships with customers through dynamic pricing and accurate quoting, lead times, and shipment dates.
IoT devices
Integrated data from IoT field devices helps oil and gas organizations have round-the-clock visibility into operational activities, run real-time analysis, and streamline processes like drilling, production and equipment maintenance.
Computerized maintenance management system (CMMS)
The CMMS integration with ERP contributes to streamlined equipment maintenance, purchase order creation, labor planning, and scheduling.
HR management system
The HRM system integration streamlines demand-driven resource allocation and scheduling and helps automate employee performance and payroll management.
Electronic data interchange (EDI)
The ERP-EDI integration facilitates the secure exchange of electronic documents like purchase orders, invoices, or shipping schedules between petroleum-related trading partners, streamlining order fulfillment.
BI software
Business intelligence (BI) integration provides employees with all-around visibility into operational processes and facilitates fact-driven decision-making with tailored KPI dashboards, on-demand analytics capabilities, and interactive reporting.
Communication tools
Integration with business communication software enables streamlined information and document sharing and synchronization right from the ERP database, making interdepartmental communication easier and more efficient.
Oil & gas ERP systems: success factors
Change management
The introduction of a new technology like ERP requires redefining business processes, designing new roles and responsibilities, and key stakeholder and employee training.
Mobile support
Modern enterprise resource planning platforms should have mobile data and business process management capabilities to keep users connected and informed and foster collaboration across locations.
Vast integration capabilities
To streamline ERP integration with internal and external solutions and enable overall solution scalability, ERP systems should offer well-documented APIs, pre-built connectors, and standard interface protocols.
AI-powered ERP
The ability to pair the ERP platform with artificial intelligence and machine learning can facilitate faster business operations, automate time-consuming manual tasks, and minimize human intervention.
ERP services we offer
ERP consulting
We help oil and gas organizations choose the best enterprise resource planning technology for their project needs and implement it within the required time and budget. The scope of our advisory services may include some or all of the following activities:
- Analysis of business needs and technology environment
- ERP solution architecture design
- ERP software selection
- ERP strategy creation and roadmapping
- ERP implementation support
ERP implementation
We implement an off-the-shelf ERP platform or custom ERP software, covering the entire project scope from business needs analysis to post-launch support:
- ERP consulting
- ERP integration
- Deployment and user onboarding
- Custom ERP development
- ERP testing
- ERP support and maintenance
- ERP customization
FAQs
What is oil & gas ERP software?
The oil and gas ERP platform integrates all the relevant business information into one central database to help companies simplify and automate daily work processes while managing oil exploration, production, refinery, distribution, and retail.
What key features should you look for in ERP software for the oil & gas industry?
It's essential to start the ERP selection/development process with a comprehensive analysis of your company’s needs and requirements, which will dictate the functionality scope. Some features you may want to look for are financial management, production management, project management, supply chain management, quality control, and asset management.
How much does oil & gas ERP cost?
The total cost of ERP solution ownership in the oil and gas industry depends on many factors:
- Deployment mode (cloud-based, on-premises, hybrid)
- Software licensing
- Hardware-related costs for on-premises and hybrid solutions
- Data management activities
- On-going support and maintenance requirements
- User training
- Non-functional requirements (ERP system availability, security, scalability, maintainability, usability)
- Quality assurance procedures
Due to the abundance of ERP cost factors, any accurate estimates are possible only after careful business analysis, solution conceptualization, and project planning.
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