Drilling Into Money Not Boring by Mark E. Battersby A Cure for Supply Chain Problems Regardless of where they lay in the supply chain, disruptions are taking a heavy toll on drilling businesses, many with fewer resources to absorb or push back on price increases and less leverage to pass those higher costs to customers. A whopping 44% of small businesses recently reported temporary shortages or other supply chain problems according to a survey of approximately 800 companies by Vintage Worldwide Inc., a coaching and advisory organization for small businesses. Supply chains are an essential aspect of most businesses today. In general, a supply chain is a network between a drilling operation and its suppliers. Businesses develop supply chains so they can reduce their costs and remain competitive. An efficient, optimized supply chain is extremely important. When managed correctly, a supply chain can result in much lower costs and faster deliveries. Logistics and labor costs have noticeably increased and a shortage of workers in some industries is pressuring companies to raise wages. For many drilling operations, the main supply chain challenges can best be summed up as: *Increased costs throughout the supply chain *Supply chain complexity due to multiple channels to market *Customer demands drive need for improved speed, quality, and service *Risk in the supply chain creates pressure *The impact of supply chain volatility *Other demands on the supply chain Successful logistics management ensures there is no delay in delivery at any point in the chain and that material, products, and services are delivered in good condition. This, in turn, helps keep costs down. When it comes to coping with disruptions and changes, flexibility and resilience are both critical traits. A resilient supply chain can weather the storm if one of their suppliers has to shut down production. A flexible supply chain, on the other hand, can adapt to new market trends and conditions in the blink of an eye. Thanks to today’s technology, improved information and processes that lower supply chain costs are possible. By automating where it counts - and keeping all necessary parts well managed - coping with supply chain issues is possible. Today, drilling business owners and managers can utilize past lessons and move forward. For some, this will mean stockpiling more inventory and forging relationships with additional suppliers. Unfortunately, far too many in the drilling industry have not learned their lessons and supply chain management will be ignored. Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com 47 AUGUST 2021 WorldWide Drilling Resource® p n S woD ond cec S 0008 & 505 seca t™ se lF l F irD emoH de id dW l or W al nu nA eht t su eeS a
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