How digital technology is bringing supply chain improvements to the oil and gas industry

Across the world, the influence of digitalization is increasing in all sectors of society as recognition of its benefits for individuals, companies and countries grows.

The trend towards greater digitalization is clearly evident in the oil and gas industry as companies look to exploit the significant efficiency, commercial, and even safety benefits that automation can bring.

Research and consultancy group Wood Mackenzie suggested the industry could save more than $70 billion from 2019 to 2024 through the greater adoption of digital technology. Furthermore, a survey of 100 executives in the oil and gas industry by EY Global found 89% of respondents expected investment in digitalization to increase from 2019-2021.

Increased digitalization as part of a company culture that embraces innovation can create a greater understanding of technological trends, help improve internal processes and deliver a competitive advantage for customers over their competitors.

Sandvik Materials Technology fully recognizes the improvements digital technology brings to customers through increasing efficiencies and product consistency while reducing response and delivery times.

One example of this has been the development of an app to streamline customer orders, project configuration, and approval processes across the three Control Lines production sites in Brazil, Malaysia and the United States. The facilities produce coating and apply it stainless steel and nickel alloy tubing. The finished product is a control line, small-diameter hydraulic lines used for downhole applications used in the upstream oil and gas industry.

The app was developed by Andre Navarro, a global process advisor in the Tubes Oil & Gas division of Sandvik Materials Technology.

Thanks to Sandvik’s relationship with Microsoft mixed with his own research, Andre was able to create a solution that benefitted both colleagues and customers – an app called Control Lines Production Mate.

Control Lines Production Mate

The app has created a seamless interaction between the three Control Lines sites so whether in Brazil, Malaysia or the United States the information shared is identical, leading to faster response times for customers, quicker delivery, and consistent product quality across the different time zones.

The easy-to-use app, which can be operated on a laptop, tablet, or cell phone, provides one common interface that calculates everything in a single pass, including conversions to metric or imperial units. This has led to significant improvements in streamlining process efficiencies, ensuring customers receive their orders more quickly.

Orders can now be approved in minutes. Digitalization makes the whole process faster, so customers can potentially receive materials more quickly than before, quality control is enhanced and, for repeat orders, product consistency is improved.

Control Lines Production Mate has been well received and rapidly adopted across the Control Lines production facilities as colleagues quickly came to realize its benefits.

The app is just one example from Sandvik of how the adoption of digital technology is bringing improvements for customers, colleagues, and the environment in the oil and gas industry. How is digitalization improving your company?

Learn more about how we value digital technology here.