International Oil and Refining Company Uses Omnicom
Software to Manage 6,000 Service Provider Contracts
Background
Eight years ago, one of the world’s leading gas and oil companies was experiencing a variety of both immediate and looming contract related challenges. To address these issues, the company turned to Omnicom Enterprise Contract Management Software, developed and marketed by Omniware, an international software developer. According to their Contract Manager: “We rolled out Omnicom 8 years ago and we’ve used it consistently since then to manage 6,000 contracts worldwide.”
Key Challenges
The Contract Manager added: “For refining, marketing, and transportation we use contractors for services. Our big challenge was consistency in managing and administering contracts. We needed to get all our safety and insurance contract and contractor information together where our users could go and obtain the information they needed to lower the risk of procuring products and services. This was our driver in terms of obtaining new software.”
Contract Related Issues Addressed
“Today, we use Omnicom across all the organizations our global procurement group supports which is substantial. We are using Omnicom mainly for the third party contractors we use to procure services. We have defined supply agreements and use Omnicom to manage those as well. Let me give you some examples of how we use the system. We use Omnicom for accessing contract information and contractors, for validating safety information, and validating everything is in place before we issue a job order against a contract. We also use the software to manage the expiration of our contracts to make sure we reissue them on a timely basis in advance before they expire.”
“Before we purchased Omnicom, we had a pending problem because we had a lot of evergreen contracts that needed to be renegotiated with our service contractors before the end of their 5 year life. When those contracts would start to expire after 5 years it would have been a significant problem had we not had a system to manage all that.”
“We roll our insurance monitoring information from our law, title, and contract group into Omnicom. On a nightly basis, we download our safety information into the system from a third party which handles our safety reviews against our contracts. These steps greatly reduce two of the biggest risks we want to have managed. Our staff can now look in one place and confirm we have an active service contract in place with a contractor and the contractor meets all of our insurance and safety requirements before they come onto a site to work.”
Omnicom. One Software. Many Benefits
According to the Contract Manager at the gas and oil company: “The big thing is that everything goes into to one place (Omnicom) consistently. Before, we had several different systems our people were using. Everybody agrees that Omnicom gives us a lot of benefits, such as providing more control over our contracts, the ability to receive alerts about upcoming expirations, avoiding missed deadlines, and paying less in penalties. If tomorrow we were no longer able to use Omnicom we would have to add a considerable number of staff because we couldn’t do the same things without exposing ourselves to additional risk. We’re very satisfied with Omnicom. It’s comprehensive, powerful, and does a nice job of managing risk.”
