Call for change

NexTier Oilfield Solutions (NexTier), the second-largest provider of integrated well completion services in the United States, is committed to consistently outperforming its competitors in terms of service delivery and investor returns. The company was formed in October 2019 from the merger of two oilfield services companies.

As both companies had their own ways of working and individual ERP and satellite systems, NexTier needed to rapidly move to a single ERP platform. The company joined forces with Accenture to facilitate the post-merger integration with a single SAP S/4HANA® installation.

When tech meets human ingenuity

With Accenture’s help, NexTier set out to reconfigure a new SAP environment, build simplified workflows and processes, and improve supply chain efficiencies.

The program involved cleansing and converting data from legacy systems, harmonizing processes in the areas of finance, asset management and supply chain management, and then configuring and testing the new SAP S/4HANA platform to accommodate the new ways of working.

To get the most out of its new SAP solution, NexTier relied on Accenture to manage SAP S/4HANA system enhancements. The team reconfigured several key areas to better support NexTier’s objectives for simplified operations and better service delivery:

Order-to-cash

Simplified order-to-cash processes in SAP S/4HANA, integrated the ERP with FieldFX, and launched a dashboard for ticketing and invoicing visibility.

Acquire-to-retire

Evaluated and migrated fixed asset-related solutions to SAP S/4HANA and simplified workflows for spending approvals and investment management.

Procure-to-pay

Simplified the “delegation of authority” processes in procurement to enable better, faster decisions, and optimized vendor-related workflows.

Inventory management

Standardized all inventory management valuation processes in SAP S/4HANA and simplified materials management and warehouse management workflows.

Record-to-report

Simplified the close process by integrating SAP Business One® into SAP S/4HANA and instituted new master data governance processes.

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A valuable difference

With Accenture’s help, NexTier has consolidated systems into a single ERP platform for all business units.

Effective technical design and configuration activities have reduced not only the IT customizations needed, but also the number of application service requests. Service tickets have dropped by more than 60%. ERP run costs have fallen by 50%. And simplified work processes have reduced manual efforts and improved employee productivity, especially in the areas of order-to-cash, asset management with new spread-level profitability reporting, and procure to pay with advanced analytics. And with a single ERP system in place, month-end closing periods have shrunk by one day, or 12%.

Based on these and many other improvements, NexTier is realizing the merger synergies it had hoped for. The journey to a single SAP S/4HANA instance was instrumental in achieving merger synergies of US$120 million in just six months from the merger.

60%

drop in service tickets

50%

decrease in ERP run costs

1 day

shorter month-end closing periods (12%)

$120M

in merger synergies in six months

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