Case Studies > Storm Resources Enriching and Future-Proofing Supplier Management Systems for an Oil & Gas Client

Storm Resources Enriching and Future-Proofing Supplier Management Systems for an Oil & Gas Client

Company Size

1,000+

Region

America

Country

Canada

Product

Avetta Connect

Tech Stack

Supplier Management System
Compliance Management
Insurance Monitoring System

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Digital Expertise
Productivity Improvements

Technology Category

Functional Applications - Computerized Maintenance Management Systems (CMMS)
Functional Applications - Enterprise Asset Management Systems (EAM)
Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Oil & Gas

Applicable Functions

Business Operation
Procurement
Quality Assurance

Services

System Integration
Testing & Certification
Training

About The Customer

Storm Resources Ltd. is an oil and gas exploration and development company incorporated in the province of Alberta, Canada on June 8, 2010. Currently, the company operates primarily in northeast British Columbia and has a focused asset base with large land positions in resource plays at Umbach/Nig Creek/Fireweed which has multi-year drilling upside. Near term, Storm’s efforts are focused on advancing the development of the liquids-rich Montney natural gas resource on 170 net sections of land at Umbach, Nig Creek, and Fireweed.

The Challenge

The client was facing challenges in its documentation and compliance classification for its suppliers based on the “stale” data being provided. This meant that certain key indicators that the client needed to verify its supplier’s capabilities were often outdated, unverified, or lacking quality insights. Between 2008-2012, compliance and operational data provided by 50% of the client’s suppliers wasn’t updated in the given time span. Simply put, the data being provided was not fresh, current, or reliable in most cases. The challenges associated with sub-optimal supplier data are only exacerbated the larger an organization gets – a factor that was applicable for Storm Resources as well. This was further complicated by the provincial WCB industry coding system used for audits in Canada. For example, Alberta alone had over 600 different industry codes to manage different industries across the province, so when paired with various other territories in the country it would be a significant logistical burden to assign the right codes to the right supplier audits. The client needed a supplier management partner to lighten their burden with regards to prequalification, compliance, and supplier management. Specifically, the client wanted a supplier management partner that would help them facilitate the processes and not drive their business as a whole.

The Solution

After discovering the company, the client found that Avetta’s robust prequalification and supplier management processes aligned perfectly with their business needs. With their quality over volume approach to data, Avetta worked in close collaboration with the client to adapt their pre-existing qualification process to better capture and review data from their supplier list. The client already possessed a good clean list of their suppliers, which they further refined to provide Avetta with the best possible starting point. With the help of the Avetta Connect application, the insights gathered from the audit procedure were used to reinforce processes such as underwriting, insurance certification, and compliance through COR, federal and provincial regulations. This was particularly important for the client due to the nature of COR certification and its links with industry and worker compensations, which is vital for safety processes and government subsidization in the related industry. While several other management partners have had the propensity to try and undervalue COR’s capacity in favor of their own audit processes, Avetta’s approach was more open to using COR as part of the client’s system. This approach enhanced the WCB, Industry, supplier and client’s recognized audit process significantly and reinforced what the client had been striving to achieve for the longest time: a contractor management system where suppliers work in partnership with the client to drive business.

Operational Impact

By partnering with Avetta, the client was able to achieve a simple yet incredibly effective supplier management system that helped support their business processes. This would ensure that the business was future-proofed and that the supplier data could be carried over to any further business dealings in the event of an acquisition.
A brand new supplier management platform that was simple, functional and adaptable to the client’s specific needs.
Direct support from Avetta’s teams in Canada that understand local requirements and compliance mandates.
Avetta took over management for the client’s list of suppliers by narrowing it down to active members on the system.
Additionally, Avetta was quick in refunding contractually owed money to those suppliers that no longer fit these requirements, thus clearing up further admin tasks on the client’s behalf and benefitting the business from an ethics and optics standpoint.

Quantitative Benefit