AKER SOLUTIONS CASE
demand. They provide product solutions and technology that enable oil companies to drill and pump oil all over the world. This means that if Aker Solutions isn’t able to keep up with the demand, neither are the oil companies.
THE OIL INDUSTRY IS STRUGGLING TO KEEP UP WITH THE PACE OF DEMAND
MOVING INTO THE FAST LANE
O
ne branch of the oil industry in particular is expected to grow tremendously: subsea oil and gas exploration. In fact, the global subsea market is expected to increase from the current levels of approximately 6 billion US dollars to around 20 billion in 2016, mainly driven by market growth in Africa, APAC and South America. For Aker Solutions, subsea production service is a core area of expertise with premium products subject to continuous innovation and optimisation. However, such high growth levels can prove to be a challenge – even to the best in class. In order to prepare for the anticipated rise in the demand for oil, the management team of Aker Solutions’ subsea business area decided that significant actions needed to be taken to ensure a streamlined and efficient business, ready to accelerate the pace and tap into the market potential. The supply chain’s readiness for growth was seen as the critical focus area, since bottlenecks may rapidly arise in the supply market when Aker Solutions and their competitors move simultaneously to ensure that they have the capacity to meet growth. The goal was to lift the supply chain performance to the next level by assessing the current situation, finding room for improvement and developing a plan to close the gaps – and do so quickly. The focus was defined as being able to deliver the right quality, at the right time, at the right cost. The entire global organisation was assessed according to a best practice supply chain sourcing framework with focus on key dimensions for handling growth – including supply chain growth plans, organisation, capabilities, supporting tools, performance management and KPIs.
T
he demand for oil and gas is expected to skyrocket over the next couple of years. At the same time, oil prices are stabilising and hitting a solid 100 US dollars per barrel. Yet it seems, despite this positive situation, that the oil industry is suffering from a problem: the struggle to keep up with the massive demand for oil. A struggle that could turn out to be crucial for the future of the industry.
B
ased on the results, a six-step improvement plan was tailored to lift performance, covering two phases: 1) strategic alignment and 2) realisation of synergies and ensuring capacity. The results are beginning to show as the company has moved more aggressively to expand capacity within key areas while leveraging economies of scale. Aker Solutions is thus now taking the next step to secure its piece of the oil industry growth pie.
One of the world’s largest oil service providers, Aker Solutions, is looking to get their piece of the pie and keep up with the pace of the GLOBAL ANNUAL INVESTMENTS IN EQUIPMENT FOR
20,000
SUBSEA OIL AND GAS EXPLORATION (USD MILLIONS) 18,000 16,000 14,000 12,000 10,000 8,000 6,000
South America 4,000
North America North Sea
2,000
APAC/Middle East 0
Africa/Mediterranean
05
06
07
08
09
10
11
12
13 Estimate
14
15
16