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Procurement Market Intelligence Report
Oilfield Modeling Services
Sourcing Guide & Market Trends
Comprehensive intelligence for making smart purchasing decisions
Learn about actual and potential costs
How much should I pay for Oilfield Modeling Services?
What is the average price of Oilfield Modeling Services?
This procurement report includes pricing information to help you purchase Oilfield Modeling Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Oilfield Modeling Services been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Oilfield Modeling Services yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Oilfield Modeling Services?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Oilfield Modeling Services with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
The market share concentration for oilfield modeling services is moderate because the top four suppliers account for between 30.0% and 50.0% of total revenue. The market is moderately concentrated because there are significant up-front costs associated with designing modeling solutions, such as the recruitment of specialists, thus preventing some suppliers... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
Regulation
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Experience
What is your renewal or repeat business rate for businesses in my industry and how does that compare to your overall rates?
Do you have case studies or client testimonials detailing the modeling services performed? Can we speak to or visit a current client about their experiences?
On average, how many years of experience does your staff have in this field?
Tell me about similar projects you have worked on in the past. What challenges did you face and how did you overcome them?
Service Performance
What proportion of revenue do you dedicate to research and development? How does that impact services?
Do you use proprietary software tools? How does that impact service performance?
Do you primarily handle projects in-house, or do you outsource the work? How is quality overseen for work that is completed by subcontractors?
Is there a formal system or process for changing a work spec? Tell me about the system or process.
Timeliness
How often do you experience problems with the timeliness of transactions? What is your on-time delivery rate?
What checks and balances are in place to ensure that the modeling project is done on time without sacrificing quality?
What is your process for working on multiple projects concurrently?
What is your average turnaround time for projects of this size?
Customer Support
How do you evaluate customer satisfaction, and how frequently do you do so? Are these evaluations made available to clients?
If you encounter issues or your client is not satisfied, what steps do you take to address the issue?
Do clients have dedicated representatives, or will clients have to call a general support line?
Do you have response time benchmarks for following up with or problem solving for a client? How frequently will you provide progress reports?
Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle changes in demand?
Contract
What value-added services do you provide? How will including value-added services in my contract impact pricing?
Do you offer discounts for bundled services? If so, what are the terms?
What other services do you provide in-house that you think may be of use to me specifically?
Do you give a competitive discount if I switch from another provider to your company?
Amid widespread health concerns, what contingency plans are in place to mitigate the risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Employees
What is the average tenure of your employees? Do you have trouble with turnover? How does that affect service delivery?
Are staff members permanently assigned to clients, or do clients work with different personnel for each project?
How do you keep your wage costs under control?
Can you give me an example from the past when a key staff member on a project left your company? What did the team do to maintain the workflow and meet deadlines?
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Key elements for every RFP
What should my RFP include?
Project Budget
Buyers should specify the total budget for the contract.
Buyers should specify the desired payment terms.
Selection Criteria
Buyers should take into consideration client references for similar projects.
Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Project Schedule
Buyers should specify the date when proposals are due and when the award will be announced.
Buyers should specify the required duration of the contract.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain for oilfield modeling services is exposed to a moderate degree of risk, which somewhat challenges buyer leverage in negotiations. The key first tier suppliers provide staple items like software products, computers and office stationery. Mounting import penetration among upstream suppliers has created an influx of competitively priced... Subscribe to learn more.