OGGN Industry Mixer Sponsored by RigER
RigER team sponsored OGGN’s monthly meet-up for O&G industry pros from across the Houston area. John Mark Cavitt, Ross Guthrie, Mark Gandy, John Stansbury and Justin Gauthier gathered to discuss Modernizing Field Service Operations.
We shared opinions on ways of decreasing DSO for oilfield service companies and achieving best possible cash flow via implementing electronic tickets and invoicing and timely and effective payment collection processes.
A company’s DSO is a key element in its cash conversion cycle. Given the vital importance of cash flow in running a business, it’s in every company’s best interest to collect its accounts receivable as quickly as possible. When DSO is low – typically 45 days and under is considered a low DSO number – the money can be put back into the business and put to good use in growing it. The reality is that no matter how certain a company is that a client will pay their outstanding invoices in the long run, the time value principle with regards to money means that any time spent waiting to be paid is money lost, and most companies cannot afford to lose at this point.
Giving teams the digital tools they need to be successful is a win-win across the board.
Real-time digitization of tickets for immediate approval and invoicing is satisfying for everyone from the employee to the client to the manager who is approving the invoice, but it also expedites payment from the customer thus decreasing DSO over time.
This next chapter in the Energy Sector promises to delineate the companies who move towards new ways of working from those who stubbornly stick to antiquated systems. The speed at which the industry is shifting, growing, and changing will no longer allow for stragglers.
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