Leveraging Field Service Automation to Shift to a Cash Flow Mindset
A Change of Mindset
The COVID-19 pandemic is a shocking moment in time. Businesses are in survival mode as the world is still reeling from this turbulent time. Many companies have scaled down their operations and have considerably downsized their organization by resizing their manpower to remain operational.
Businesses are looking to remain afloat and grow in this tumultuous economic landscape. The problem is the market itself is not in “high-growth mode.” Over the past months, demand has increased. However, with the new surge of cases, the market is sure to be affected. To adjust, oil and gas companies will have to shift their mindset from “growth” to “cash flow” oriented. For a company to be cash flow orientated they must meticulously manage the net amount of cash that flows in and out of the business. A positive cash flow is essential for long term growth.
Companies that succeed in these tough times will shape the industry’s future. Travis Parigi, CEO, LiquidFrameworks said, “When the price of oil dropped to $8 a barrel, way back when, Exxon and Chevron learned how to make money at $8. They didn’t forget when it went up to $100. Their profits just went up by ten-fold. Great companies know how to take advantage of uncertain times and that puts them in an even better position in the future.” The organizations that emerge from these testing times, will be equipped with the capability to deliver long-term growth
Get That Advantageous Position
There are still a lot of uncertainties with the depth and duration of this crisis. Which creates an added layer of uncertainty to a market that is generally cyclical in nature. Yet the pace of change associated with the markets is certainly increasing in nature. The ups and downs of the price of oil are seemingly happening more frequently. The oil and gas industry experienced it’s third collapse in twelve years. Navigating a volatile market can be tricky. But if you put your business in an advantageous position, the chance of success increases exponentially
LiquidFrameworks is well-positioned to address these challenges and help our customers succeed. Field service automation can put enterprises in a position to help lead the transformation from pure growth-oriented to cash flow-oriented.
Many LiquidFrameworks customers have benefited dramatically from the improved cash flow that follows from accelerating the time from when a job is completed to the days to invoice. Liberty Lift was able to eliminate paper tickets, which allowed them to accelerate the time from when a job starts to when they invoice their customer. “We’re not losing tickets anymore. We can start tracking everything. Our tickets look better – they’re not handwritten,” David Snow, Liberty Lift’s IT Director, explained. They are invoicing their customers faster than ever before.
Additionally, LiquidFrameworks helps users issue an accurate invoice, which reduces day sales outstanding (DSO). Stallion Oilfield Services was able to immediately reap the benefits after implementation, and now there’s no looking back. “We’ve been able to drop DSO, put tablets in the hands of our drivers and eliminate paper,” said Jason Lu, Stallion’s Chief Information Officer. With a reduction in their DSO, Stallion was able to improve cash flow and their bottom-line.
The LiquidFrameworks Advantage
Companies are seizing the opportunity to put in systems that make their processes run more efficiently. It will make them even better positioned when this cycle inevitably happens, again. LiquidFrameworks’ customers are investing in improving processes by implementing FieldFX. This is what the smart companies do; in more challenging times, they double down on streamlining processes, doing more with less, rationalizing systems and repositioning themselves for growth.
FieldFX Powers the Future
Improving cash flow starts with improving your field service process and having data available that you historically have not had in a digital system. Data that’s been floating around in paper, Excel spreadsheets, Word documents, and Google documents. This empowers management to be more strategic. The pendulum again is swinging hard and fast and the companies that are best prepared to manage the turbulence are going to be the most successful.
Improve cash flow for your enterprise by investing in a powerful field operations management software like FieldFX. Visit us here to schedule a demo and find out more.