A Chinese Oil and Gas Industry Client Adjusts Inventory and Tackles Supply Chain Vulnerabilities in Preparation for the Post-COVID Era | Infiniti’s Recent Success with Market Potential Analysis

The COVID-19 pandemic has taken a substantial toll on the transportation, automotive, and oil and gas industry due to national lockdowns and new remote work systems. The Chinese oil and gas industry was among the first to be impacted, being the first geographical region to be affected, and the virus's widespread nature. The economic impact has led to a reduction in prices, reduced automotive usage, and changed consumers’ traveling and expense patterns, taking a further toll on the industry. Therefore, top industry players are now aiming to forecast and prepare for changes in demand in the post-COVID era and making necessary changes within their supply chains, inventory, and cash flow strategies to achieve a strong recovery after this crisis. Infiniti’s market potential analysis helps companies in the Chinese oil and gas industry analyze the expected demand in the post-COVID era and make the necessary adjustments to achieve operational excellence.

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Market Potential Analysis for a Chinese Oil and Gas Industry Client: Five Phases of our Approach (Graphic: Business Wire).

To leverage Infiniti’s market potential analysis for comprehensive insights into the demand, ideal supply chain strategies, and inventory management solutions for the Chinese oil and gas industry in the post-COVID era, request a free proposal.

“To maintain a superior level of operational excellence in the post-COVID-19 era, oil and gas companies must also consider some critical factors including crisis management, reliability, productivity, supply chain management, and cost optimization,” says an oil and gas industry expert at Infiniti Research.

Business Challenge:

The client, a leading Chinese oil and gas industry client, struggled due to production and price declines caused by the jarring COVID-19 pandemic. With various operational and financial challenges in the market, the client also suffered from supply chain vulnerabilities, cash flow constraints, and workforce management obstacles. The geographically fragmented supplier base and lack of visibility into their supply chain and spend led to further complications. Therefore, the Chinese oil and gas industry client sought to partner with Infiniti Research, leverage our expertise in offering market potential analysis, and re-evaluate their operations. During the nine-week engagement, the oil and gas industry player also wanted to optimize spend analysis, divest from under-performing assets, and adjust cash flow management.

Our Approach:

Infiniti’s market potential analysis experts developed a five-phased approach to assist the Chinese oil and gas industry client, that included the following processes:

• Assessing how profitability could support ongoing operations and reviewing the client’s capital and corporate budgets with crisis management and response
• Compiling required employee data to develop and implement risk management programs as part of workforce management
• Addressing supply chain and operation complexities and identifying alternative suppliers to help meet immediate post-COVID requirements
• Modifying risk factor disclosures and re-evaluating financial balance sheets by focusing on financial reporting
• Reassessing cash flow statement forecasts and analyzing worst and best-case scenarios over varying timespans with efficient cash flow management

Business Outcome:

By leveraging Infiniti’s market potential analysis, the Chinese oil and gas industry client improved spend data quality and accuracy and gained complete visibility into streamlined processes and procurement. By forecasting potential post-COVID market demand, the client reduced their capacity and cost structure and reduced operating costs by outsourcing corporate processes, such as shifting non-core functions to contractors. Further, the Chinese oil and gas industry player identified alternative suppliers and safeguarded their supply chain operations by gaining a comprehensive understanding of supply chain risks and identifying local suppliers to support them during a crisis. The client identified new ways to reduce cash outflow and adjusted their inventory for the post-COVID era by reviewing their inventory position and assessing supply chain complexities.

Speak to industry experts to leverage our market potential analysis and prepare for the post-COVID era in the oil and gas industry by adjusting inventory, re-evaluating cash outflow, and devising strategies to improve employee safety.

About Infiniti Research

Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to analyze competitive activity, see beyond market disruptions and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us

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