In such a dynamic environment, it is very necessary to maximize the speed of work, minimize mistakes, and provide guaranteed results. While venturing deeper into the year 2024, it is noticeable that a number of companies in Saudi Arabia are relying on managed inventory solutions as means of optimizing processes and achieving better results.
What is managed inventory? It is not just a fashionable term that has been created to be used in supply chain management; it is a practice which helps to make sure there are no disruptions of any supply chain because of lack of material and no disruption of production because a certain material is not available when it is required to be available. In this blog, we will look at why it is crucial to have managed inventory services in KSA – a country that thrives in oil and gas.
Managed inventory is when the supplier is held responsible for controlling and maintaining the customers’ inventory. It involves aspects such as checking the available inventory, predicting the rate at which material is consumed or produced, restocking the inventory as well as managing the movement of the material within the company. The objective is as follows, no or low inventory stock positions and likewise no or low shortage positions as a result of above targeting will result in operational inefficiencies and additional cost.
The management of inventory in the context of oil and gas business is progressively obtaining a reputation for prominence due to its delicateness in enhancing the financial performance of organizations. Oil and gas has been one of the most significant sectors in the Kingdom of Saudi Arabia because of its importance to the economy. Currently, Saudi Arabia’s oil and gas industry contributes to around half of the gross domestic product and 70% of export revenues, as of the year 2024. Thus, it is crucial to provide proper conditions for the functioning of this sector as unobstructed as possible.
The various advantages for oil and gas organizations in Saudi Arabia to embrace Managed Inventory include the following:
Managed inventory allows for visibility of stock, use, and expectations and expectations about demand in real-time. It is through this openness that companies can be in a position to manage their affairs well, organize themselves when there are changes in demand and new requirements or future demands are likely to happen.
Manual methods of handling inventory are time-consuming and inaccurate and may create serious problems that might be hard to sort out. Automated managed inventory systems are proven to have fairly accurate results at identifying and tracking existing stock and the changes taking place hence minimizing the occurrence of the discrepancies.
Captive inventory increases interaction between the supply chain firm and the customers in the supply chain. There is better customer focus in which suppliers get insights of consumers needs and demands to ensure that products are restocked appropriately therefore enhancing service delivery and conclusive customer relationships.
Therefore, in the period of high growth of the oil and gas industry in Saudi Arabia, systems managed can adapt to higher demands. In large companies, managed inventory can work in any capacity whether there is a need to expand its current functionalities, or in cases where the company is exploring new territories.
Effective inventory management helps to reduce unnecessary expenditure in both manufacturing and stocking and therefore the effects of the environment arising from excess production and storage. This is in line with international sustainable development objectives and assists the companies in the upstream oil reserves industry to become more sustainable.
Looking forward into the prospects of managed inventory in KSA oil and gas industry, we can assert that it has a favorable prognosis. The industry is on the edge of further development and a lot of emphasis is made on new projects and innovations. This growth factor suggests that managed inventory is going to influence the success of supply chains in a dramatic way by catering for increasing demand while keeping supply chains both efficient and adaptable.
Nowadays, many other enhanced technologies that include artificial intelligence, machine learning, and Internet of things IoT shall also be incorporated into managed inventory systems hence improving the functionality of these systems. With expenditure going mainly into inventory, these technologies can help in getting better and more detailed information on stock data, enhancing the forecasting and automation of various aspects of inventory.
As highlighted above, sustainability is now a major consideration area within the oil and gas sector. Evaluating inventory can play a part in delivering organization’s and project’s ecological objectives as it means less wastage, less of storing enormous inventory and the overall effective utilization of the available resources. It becomes easy to conclude that those firms that incorporate sustainability in their inventory management techniques will respond to the forthcoming legislation and expectations effectively.
It was also observed that cooperation with oil and gas organizations, suppliers, and the managed inventory system will improve further. These relationships will need to be established to foster new and creative approaches to inventory management, to collaborate on how practices can be improved, and to ensure improvements ripple across the industry.
Also Read: Oil and Gas workforce solutions KSA
Managed inventory is revolutionary in the oil and company in Saudi Arabia. On the other hand, implementing smart contracts can have multiple benefits such as, increase in production, decrease in costs, better relationships with suppliers as well as increased sustainability. Managed inventory will remain an intelligible aspect to keep on making the industry more successful.
Managed inventory solutions may be of interest to businesses and organizations requiring an inventory ecosystem to be fulfilled immediately at their convenience. The GET Global Group is one of the biggest Managed Inventory providers in Saudi Arabia with its primary focus toward the oil and gas industries. When you deal with The GET Global Group you gain confidence with a portfolio of successful and well documented technological acumen and industry experience to ensure that businesses achieve their objectives and goals of inventory management and cost control.
Also Read: Oilfield Manpower Solutions KSA
