Last April 9 and 10, the PIDX International US Spring Conference was held in Houston Texas. Hosted by ConocoPhilips, the theme of the conference is “How Sharing Data with a Common Standard Enables Impactful Analytics.” Many people had greatly benefited from the event, including IT vendors, procurement & supply chain executives, sales and marketing specialists, project managers, eBusiness analysts & programmers, and many more.
One of the topics discussed was the Drive of Supply Chain Standards for Real Business Value. It explained the issues in the energy industry such as lower oil prices, high costs pressure margins, and increased debts among upstream companies. Firms struggle as oil price pressures margins, forcing them to confront productivity and cost challenges. To address these issues, standards should be imposed to reach the full opportunity of the industry. Many of these opportunities require technology across company and functional firewalls. This technology is necessary to digitally integrate Req-to-pay, master data analogs, enable better leverage of materials, provide maximum access, connect and filter data, employ intuitive user interface, and many more.
Why do we need these industry standards? We need them to facilitate the success of technology solution. They provide organizations with a logical base from where improvement can carry on. Today’s supply chain includes master data standards such as PIDX, eCommerce integration, freight, and import/export.
Although standardization is powerful, there are still a lot of things to consider. Before you select and implement standards, you need to know your business model or else you will be going to a wrong direction. You also need to understand that introducing these standards does not replace the need to execute defined processes and manage operations. Moreover, it does replace the need for quality decision-making.