In light of the current unpredictable economic climate in the oil sector, oil companies are on the verge of limiting the costs of operations and that of capital investments. For more than seven years, oil and gas companies have suffered the lowest oil prices for almost two years with the price per barrel hitting below $40. Most attribute the decline to the rising exploration in the Northern American Countries, the entry of Iran’s Oil in the OPEC markets and the slump in the Chinese economy.
While some companies have recorded decline in the level of drilling and distribution, thousands of jobs are at stake if the industry continues to limp. Some of the major oil producers such as Saudi Arabia and the UAE have resulted in reducing their production awaiting the prices to rise, with the US increasing the operations to supply the local market. Discussions about oil prices and the Chinese economy have entered the center stage in the world economic forum and shaped the direction of the USA presidential debates.
The fact that the oil sector faces a decline in the price of the oil does not shield the workers from risks of working in the onshore and offshore rigs. In fact, increased exploration and production in the USA raises the need for more workers that are often exposed to the risks of falls, fire outbreaks and falling objects among others. Most firms have made substantial investments to mitigate the risks of fires and accidents in the working stations.
On the other hand, creating safety awareness and equipping your workers with the right protective gear remains paramount to curbing workplace incidents. With numerous PPE providers in the subsector, it is imperative to get the best bargain without compromising the safety of the users. With oil and gas safety supplies, you are rest assured of high quality yet affordable gear that suits varying workplaces. Some if the PPE available in the company’s catalog include FR Denim Jeans, FR Long Sleeve pocket Shirts, FR Raglan Long Sleeve Shirt, FR Reflective Rain Jacket, Full Face Respirator, Reflective work T-shirt and fall protection among others. Below is a guide on how to save money when buying protective gear for your workers:
With a functional procurement department, it is possible to bypass the input of the users and rush the sourcing process to completion. In such instances, you fail to achieve specific aspects of the PPE about the delicate issues of functionality and comfort. For this reason, the employees’ input comes in handy towards getting the right gear and prices for the PPE. Some come with ample experience in the PPE sector and hence could be resourceful in the sourcing process.
If you are operating on a limited budget, you may be tempted to buy the disposable gloves that come with great discounts. While that solves the short-term financial challenges, it leaves the huge financial burden of frequent replenishments that are costly in the long-term. It calls for proper planning for the PPE purchases in line with the company’s fiscal policy to prevent ad hoc purchases. At Oil and gas safety supplies, you can save sufficient amount of money on gloves through high-quality brands such as the Basic Metacarpal Gloves, Cestus Waterproof insulated gloves, cotton gloves, frost breaker brown foam glove, full dipped Ninja Ice Glove, lined Suede Pigskin Glove and the Palmer Glove among others.
With most companies employing hundreds to thousands of employees, the cost of the PPE remains significant to the operating cost. In most instances, workforce recruitment occurs on a need basis creating the need to buy the PPE when a new staff joins the team. If you are purchasing a handful of items, you may not be in a position enjoy the discounts that come with bulk purchases.
On the other hand, no one is looking forward to making investments awaiting people to join the company. It means holding funds that could be used to optimize the operations to achieve greater efficiencies and profitability. As you plan to make bulk purchases, adequate planning is key to reducing excess stocks whose quality might deteriorate over time. Predictive assessments highlight the time when you may need to buy PPE in bulk to serve the needs of your crew. Also, consider flexible designs to lower the need for customized shapes and sizes that raise the cost of the gear.
When it comes to managing the costs of operations, startups find it hard to outcompete the large corporations, reducing their profit margins. While the firms are out to compete with similar entities, they can still utilize synergies and make bulk purchases of some equipment. On the other hand, the large companies may not need to collaborate as they have the financial strength and the numbers required to enjoy price discounts.
Consider teaming up with other startups as it raises the thresholds needed to earn you promotional discounts. However, one needs to identify those that have similar needs to prevent compromising the safety of the crew.
In line with the industry regulations, most companies are keen to satisfy the set standards and provide safety and comfort to their teams. While that takes center stage, the aspect of cost is one that elicits debates in every transaction owing to the rising costs of doing business. Whether you are buying FR Pants, FR headwear, FR outerwear, FR rainwear, FR Coveralls, FR Safety Vest, ear protection, safety glasses and work boots, you can save money when the sellers make offers.
You need to understand the price movements for the PPE and consider buying when these prices are at the minimum. Different stores offer discounts at various times hence the need to monitor the industry trends to get the best out of the sourcing process. Oil and gas safety supplies updates on upcoming promotions way ahead of the sales, giving ample time to plan for the purchase.
Other than the cost of buying the equipment, the total cost includes transportation and clearance charges that often inflate the budget. In the advent of online marketing, you can now get all products at your door without stepping out of your door. In a bid to attract customers, most suppliers provide free shipping services on sales that meet a given quantity and value threshold. Nonetheless, not all vendors provide the services hence the need to check the buyer agreement before committing to a transaction.
Oil firms are likely to save a substantial amount of money through online purchases than physical sales. Other than Hawaii and Alaska, the oil and gas safety supplies provide free standard shipping on all orders. You do not have to stop some work to complete the sourcing process.
It starts with evaluating the needs of your employees in line with the industry requirements and the working environment. Once established, there is a need to define the quality of the PPE required to give longer lifespan and hence reduce the need for frequent replenishments. With numerous supplies available, you are likely to fall for the promotional language and perhaps the crazy discounts often matched with stringent terms and conditions.
With a huge sum of funds at stake, a thorough background search on the prospective suppliers goes a long way in eliminating fraudulent entities. It gives the platforms on which you can negotiate for discounts and better return and exchange terms upon purchase. The customer review sections provide an indication of the kind of the supplier you are about to deal with, while the regulatory institution provides information on the provider’s qualification.