RigSupplies.com Launched

Dec 20 - 2000

RigSupplies.com Launched December 20, 2000

Two Edmonton companies are joining forces to enter the burgeoning electronic oilfield supply business by creating a new e-procurement site for drilling companies.

The new Internet web site, a joint venture between Edmonton's CSM-Systems Inc. and RigSupplies.com founder Scott Widney, promises to significantly change the procurement process in the rig supply industry.

"We have effectively taken a 26-step purchasing process and rationalized it into a three-step point and click method on the web," says CSM President John Putters. "This will result in a dramatic reduction in time spent to purchase rig supplies, which will translate into cost savings for both suppliers and purchasers of these products."

"We decided this was a perfect time to launch RigSupplies.com as the industry is heading into a hectic phase if activity." explains RigSupplies.com president Scott Widney. "we firmly believe the activity for personnel to send RFQ's (Request For Quotes) to multiple suppliers at the stroke if a key will prove the theory that time is money."

The new web site was officially launched Dec. 7 at the historic Leduc #1 Canadian Petroleum Interpretive Center, located 30km southwest of Edmonton, Alta. The old Discovery at Leduc #1 signaled the beginning of a new era for Alberta as it proved to be the largest oilfield tapped in Canada.

As a historical footnote, RigSupplies.com president Scott Widney is son of Dan Widney, who co-founded Widney Well Servicing in 1951. The first service rig in Canada was built by Widney Well Servicing in 1953. The replica of this rig can be seen at the Leduc #1 site.

Widney, together with CSM-Systems Inc., has now brought the drilling and service rig industry to the high-tech arena with the launch of RigSupplies.com

Key to the technology behind RigSupplies.com is a proprietary RFQ system, developed by CSM-Systems Inc., that enables buyers to submit RFQs to numerous suppliers using a three-step interface.

The RFQ Quick Select system allows buyers to compile a materials list and create a request for quote for pre-approved suppliers. Currently, the materials list includes over 400,000 products from general supplies to pipe, tubing, and pressure control supplies. The company expects this list to quickly grow to millions of products in the near future.

Companies participating on RigSupplies.com can specify multiple locations, quantities, and carriers or couriers for products delivery, The web site also generates an MTD, or Master Tracking Document that includes the detailed list of materials Purchase Order number, and invoice numbers enabling participating companies to track supply expenditures.

Purchasing managers also have the ability to electronically monitor procurement transactions through RigSupplies.com in order to introduce new efficiencies and ensure their company gets the best prices on supplies.

For example, a company may find that within one month it purchased 1000 rags on six different occasions. With easy access to this purchasing information, the company may instead purchase 6000 rags in one purchase order, thus reducing the total cost and labor involved with purchasing the supplies.

"RigSupplies.com is all about taking an existing process and making it more efficient and easier." explains Putters. "We consulted with industry leaders and exciting tested the solution before creating the e-business application that improves the existing requisitioning process."

According to recent report on e-commerce by Goldman Sacbs, the estimated savings from business-to-business e-commerce in the oil and gas industry range from 5 to 15 percent.