Running a job site can be costly, and unfortunately, going over budget is usually the name of the game. So it’s no surprise that finding ways to cut costs is a priority for almost every oil and gas operator. But you also know that it’s equally important to not cut corners, because it can result in even more time and money lost.
With all of that said, there are a few adjustments to your existing processes that can safely and effectively save money at your job site.
#1 Expand Your Rental Equipment Options
You probably have a list of vendors that you’ve built incredible relationships with over the years, and managing those relationships is important. But if you’re looking to cut costs, exploring and expanding your vendor options is a great place to start. At first it may sound tedious, but in the long run, it can save you money and keep your job site on budget. What’s even better, new solutions actually make the process completely streamlined.
Normally, sourcing quotes on equipment would take hours of phone calls or even research online. But now with resources like online industrial marketplaces, you can find the exact piece of equipment you need and get quotes from multiple providers sent directly to you with just a few clicks. With all of your options in one place, you can find the right asset, at the right price, as quickly as possible.
#2 Manage Existing Vendors More Efficiently
If you’re not looking to expand your list of vendors, instead take a look at how you’re managing your existing relationships. Is it easy to see everyone you work with and request quotes from them? If a piece of equipment needs service, are you quickly able to locate the contact information for the vendor? With a vendor management solution, you can centralize all of the details and communication with the vendors you know and trust in an easy-to-use platform. All you need to do is upload your approved or preferred vendors to the solution you choose, then proceed with business as usual. The efficiency gained will go a long way in saving money at your job site.
#3 Watch Your Waste and Energy Usage
It’s no secret that energy-efficient practices can help cut down on costs. As you go throughout your day, take time to notice if any small changes could be made to be more energy-efficient or cut down on waste. For example, ordering materials that come in less packaging or ordering in bulk can help cut down on your site’s waste—which means less waste removal costs. Another way is to make sure your crew is reusing anything they can. Also, take a look at the equipment and lighting being used on-site and see if there is any way to optimize the usage. Over time, these small changes can turn into big savings.
#4 Enhance Your Site and Asset Management
Asset management is a vital part of controlling your budget, and there are two big ways that proper asset management can cut down costs at your job site.
The first is by evaluating your equipment to see if any unused equipment you own could be sold or rented out. If your equipment is currently idle, a great option to help cover insurance or maintenance costs is to rent out your equipment. Or if you decide you no longer need the equipment, you can sell it for profit and cut out the cost of maintaining that piece of equipment. One way to know if it's time to sell is by calculating the current cost of the equipment and compare it to the cost of renting the same equipment when you would need it. If the cost of renting is cheaper, then it may be time to sell.
The second is by getting the visibility necessary to understand where your rented equipment is at all times. Either done manually or through asset management technology, having an up-to-date view of all of your job sites, equipment, and materials can help you identify unused rental equipment that’s costing you money. Overall, this visibility allows you to make better decisions and problem-solve faster.
#5 Keep Your Employees Happy
You’ve worked hard to find the right team, now it’s important to keep them happy. It’s simple, workers that feel valued and appreciated will put in the work to make deadlines and stay on budget. While workers that do not feel appreciated can let things slip, feel unmotivated, and slow down your job site. But it’s about more than free lunch and company swag. To really create an environment where employees feel motivated to put in the work to keep you on time and budget, you can:
- Open up the conversation. Remind your employees that they are valued and encourage all forms of feedback.
- Ban burnout. Even a well-oiled machine needs maintenance. Avoid overtime hours whenever possible to prevent fatigue and burnout on the job.
- Upskill and empower. Make sure your team has the right training and tools to get the job done, and provide opportunities for professional growth and development.
A Few Tweaks Can Make a Big Difference
By looking at your traditional job site processes and being open to some small changes, you can improve effectiveness and cut costs.