Attitudes shifting in purchasing approach for oil companies
Trelleborg survey shows value, life cycle and durability are priorities in procurement
The price of products and services trails other significant factors, such as value, life cycle, and durability as a purchase priority, according to a recent independent survey of oil and gas professionals making procurement decisions, conducted on behalf of Trelleborg’s oil and marine operation. Despite challenging times for the industry, when asked to rank different factors affecting their decision to purchase an oil hose, respondents listed ‘durability and life cycle’ as ‘vital’ over 80% of the time. The next most ‘vital’ factors were ‘aftersales support and service’, and ‘ease of installation’ at 32% and 28% respectively.
Price, on the other hand, was listed as ‘vital’ only 19% of the time. This reflects a growing understanding in the industry that cost-cutting measures are increasingly being considered as a ‘new normal’. Investing in lifecycle measures at the beginning of a project is acknowledged as having collective benefits that - while reducing ongoing operational expenditure - include additional advantages, such as continual monitoring, maintenance and customer-focused solutions.
“This anonymous and independent survey conducted on behalf of Trelleborg highlights a significant shift in attitudes in an industry that is often resistant to change,” said Vincent Lagarrigue, Sales and Marketing Manager for Trelleborg’s oil and marine hoses. “Companies across the board would probably agree that convincing customers of the value of investing in a long-term solution can be tough, particularly in challenging market conditions. But as this survey shows, people value not just quality, but an ongoing, consultative partnership with a supplier that will help them achieve the optimum solution. This is something that we strongly advocate at Trelleborg.”
Individual responses in the survey also revealed the value that customers place on fast, responsive service, and the ability to create custom solutions. These factors can often be critical in helping customers choose between similar options in an industry where shifting suppliers is seen as a significant pain point.
“Trelleborg has always maintained that a collaborative approach with customers is the best way to arrive at quality, efficient solutions. Our engineers become involved at the earliest stage of any project to conduct the advanced testing and modelling needed to predict the exact conditions in which a product will function. Through our product range, we are able to offer a range of customised solutions for all environments, such as the TRELLINE nippleless technology for extreme environments, or the more ubiquitous SEALINE nipple hose design.”