EXTERRAN:
GLOBALISING THE SUPPLY CHAIN AMIDST A DIGITAL TRANSFORMATION
EXTERRAN:
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TRANSFORMING THE OIL AND GAS SECTOR WITH AN INNOVATIVE SUPPLY CHAIN TRANSFORMATION WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
GLEN WHITE
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Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, discusses how his company is beginning to digitise its services in the oil and gas sector.
F
or manufacturers today, digitisation is vital if they want to remain one step ahead of the competition and perhaps nowhere
can this be seen better than in the oil and gas industry. Regarded as a proactive solutions provider to a 04
range of global and regional oil and gas customers, Exterran is now embarking on the first phase of its digital transformation plan. Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, highlights how the company’s procurement function has become a key part of Exterran’s operations. “In the past, procurement used to be where purchase orders were made. The company would say ‘I need this, go and buy it’ and it would be the job of purchasing to buy and provide it,” explains Devadiga. “What’s different now is that we ask lots of questions to drive value. Are we buying at the best price and is it in our plan? If so, are we buying it from suppliers who are qualified? Is this supplier consistent? Are we going to create a museum of suppliers and then end up having to spend more on maintaining parts and services? It’s
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Project management Praj’s project management team consists of qualified, experienced and PMI certified professionals well versed with the global standards and practices.
Engineering Engineering is the backbone of Praj’sintegrated offerings. More than 70% of the employee strength consists of engineers of various disciplines – Chemical, Mechanical, Civil & Structural, Electrical & Instrumentation etc. Praj has successfully leveraged their capability to provide modular solution to range of industries.
www.praj.net
Over the last few years, Praj has successfully supplied M industries such as Oil&Gas, Refineries, PetroChemicals and C engineering capability for designing modules and equipment clients and till date we have reference base in more than 75 been appreciated by our global clients. Leveraging our man highly price competitive solutions to the industry. Praj with more challenging projects in spirit of partnership with custo
Manufacturing Praj’s business lines are supported by its world-class manufacturing infrastructure. Praj has 4 manufacturing facilities in India. All the facilities have the capability to manufacture equipment in compliance with the most stringent requirements of various countries across the globe. All the facilities are accredited with ASME U&U2 stamps and have also successfully manufactured equipment with CE, EN, GOST, DOSH certifications etc.
Supply Chain Management A strong backbone of SCM team supports the complexities involved in Praj’s business. With around 50 qualified professionals, the team handles procurement of over 100 categories of commodities, metals, equipment, electrical, automation, piping, structural, rotary equipment like pumps and compressors.
Modular Plants and Static Equipment to various process Chemical industries.This is enabled by our multi-disciplinary t. Our team has very good experience of working with global 5 countries. The quality systems are world-class and have nufacturing locations in India, we have been able to provide h its demonstrated capabilities is geared-up to take-up far omers.
FIND OUT MORE HERE w w w.ex te rra n . com
important to figure out exactly what we’re enabling.”
IMPLEMENTING DIGITISATION Having previously worked in India at General Electric Oil & Gas in a variety of different roles such as Senior Product Manager, Business Manager and then Head of Supply Chain Integration, Devadiga is well-positioned to oversee the beginning of Exterran’s digital transformation as it begins to digitise its operations. “We’re in the process of digitising our supply 08
chain operations in order to implement the same ERP globally and we’re also introducing the necessary digitisation platforms to enable engineering teams to work seamlessly across our locations in Houston, the UAE and Singapore. It also allows us to connect with the supply chain team which, similarly, is on a platform that allows us to collaborate as a global supply chain organisation,” he explains. “We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital.” “At our current stage of digitisation, we have invested in two key things. Firstly, we have remote monitoring and
“ We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran
diagnostics equipment that allows us to collect, collate, synthesise and then analyse information from equipment across various sites worldwide. Once we have refined our operations in one area, we can then implement this approach across our various locations which have the same operating dataset,” he says. “Digitisation is also enabling to us reduce our operating expenditure and better manage our finances.” Devadiga believes the transition of three enterprise resource planning (ERP) systems to two has been key to his company as it looks to implement phase one of its digital transformation. “In the third quarter, we’re targeting for all our pilots to be completed and launched to the platforms. We must be very judicious, take the feedback and refine it because you need a strategically significant dataset,” says Devadiga. “One of the big hurdles has been that we don’t have a contract operations site in the US where we just sell products. However, in terms of the rest of the world, we have more of a 360- degree solution approach because we don’t just sell products but we also build, own, operate, and maintain them over five to 10 years. Ultimately, it’s the big global w w w.ex te rra n . com
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Handle the Pressure We know you’re no stranger to pressure. At Atlas Copco Gas and Process, we strive to transform industrial ideas into solutions that help you thrive under pressure. That’s why Exterran has trusted Atlas Copco Gas and Process for over a decade to supply the critical turbomachinery they need. With solutions developed to ensure on-time completion of gas processing plants across the globe, we are a connected, accessible partner when the pressure is on and delivery timelines are tight. Working with Atlas Copco Gas and Process ensures that you have a partner every step of the way, helping you handle today’s pressures while creating a sustainable future.
Find out how Atlas Copco Gas and Process can help you handle the pressure at atlascopco-gap.com
CLICK TO WATCH : ‘EXTERRAN OVERVIEW’ 11 sites in Argentina, Oman and Thailand
During the past year, our Middle East
where the first phase of our digital
operations in Oman and Bahrain as
transformation plan will be launched.”
well as our manufacturing facility in the UAE and Dubai are all on Oracle. But,
FORMING KEY PARTNERSHIPS
Pakistan, Nigeria, Thailand, Indonesia
Exterran has begun to work with
and the entire Asia-Pacific region still
Oracle across all its sites in North
use Sage Accpac as an ERP. That’s
America and Latin America. Through
why we’re rolling out these pilots only in
the company’s collaboration with
the Oracle ERP areas.”
Oracle, Devadiga believes his company
The importance of establishing and
has utilised ERP to introduce pilots
maintaining key partnerships is
successfully. “In the western hemi-
fundamental to all successful busi-
sphere, all our sites in places such as
nesses. Exterran has collaborated with
North America and Latin America with
industry leaders such as General
the exception of Peru are on Oracle.
Electric, Ariel Compressors, Caterpillar w w w.ex te rra n . com
Intelligence Automation
Solutions for the Oil & Gas Industry Visit us at: www.intechww.com
USA
UAE
Saudi Arabia
LEARN MORE
Nigeria
Singapore
Pakistan
Agencies in:
Kuwait
Oman
Kazakhstan Qatar
Peru
North Africa
Angola
China
Indonesia
“ It’s up to us to select the compressor that Ariel may be manufacturing and marry it to the engine that Caterpillar might be manufacturing” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran
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Engines and Atlas Copco. Devadiga
However, these two units don’t do
affirms that a good working relation-
anything by themselves. The engine
ship with partners is vital to success.
and compressor must be together
“Our partners are extremely impor-
and installed with the associated
tant,” he says. “From our perspective,
piping and other components in a
there’s a very high degree of depend-
manner that fulfils the purpose for
ency on these original equipment
which that compressor has been
manufacturers (OEMs). We need
designed. That capability exists with
them to value our association as a
us because we develop the solution in
delivery model for their products into
order to process and treat that gas.
the oil and gas industry because
It’s up to us to select the compressor
we’re packagers of their machines
that Ariel may be manufacturing and
and we buy the engine and compres-
marry it to the engine that Caterpillar
sor from the engine manufacturer.
might be manufacturing.” w w w.ex te rra n . com
“ Ultimately, it’s the big global sites in Argentina, Oman and Thailand where the first phase of our digital transformation plan will be launched” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran
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LOOKING TO THE FUTURE
explains Devadiga. “We’re in the first
Looking forward, Exterran is set to
stage of collecting data and transform-
remain acutely focused on its digital
ing that data into information. But if we
transformation strategy. Valuing a
can implement tools where the informa-
mentality of “knowledge is power”,
tion can be gleaned from the data and
Devadiga believes it’s important to
made available to managers both at a
remain vigilant when gathering data in
high and mid-level, it will create a
the digital space. “We can’t improve
knowledge base that will allow us to
when we don’t know what we need
scale up from being this $1-3bn
improve on. The journey to knowledge
company and hit the $5bn mark. That
starts with three simple words which
has to be the goal.”
are extremely difficult for most people to say: ‘I don’t know’. But the moment we admit that we don’t know, that’s when we can start our journey,” w w w.ex te rra n . com
T +971 568 800 944 www.exterran.com