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MIMI STANSBURY, CEO, OFS PortalÌýÌýÌý

The energy sector stands at the crossroads of digital transformation. Innovations in B2B eCommerce, cloud computing, blockchain, and artificial intelligence (AI) promise to enhance supply chain efficiency, reduce costs, and streamline procurement processes. However, despite the undeniable potential of these technologies, significant challenges remain—particularly in the form of regional disparities in digital adoption. The gap between markets that have fully embraced digital solutions, and those that are lagging, creates a fragmented landscape in which many suppliers, especially smaller and rural players, struggle to keep up.Ìý

THE GROWING DIGITAL DIVIDE IN ENERGY SUPPLY CHAINSÌý

While regions like Europe (EU) have made significant progress in standardizing digital processes through initiatives such as (originally a business-to-government mandate known as PEPPOL — Pan-European Public Procurement On-Line), other parts of the world, particularly North America, still face considerable challenges in achieving full digital integration.Ìý

Many energy companies in regions like North America and Asia-Pacific (APAC) continue to rely on outdated, paper-based methods for business transactions, such as paper and PDF invoices, as well as manual checks. This reliance on manual, slow processes leads to inefficiencies and puts smaller suppliers—especially those in remote or underserved areas—at a distinct disadvantage.Ìý

Fig. 1. The absence of national mandates for standardized digital procurement and invoicing systems exacerbates the supply chain digital divide. To unlock the full potential of digital technologies in energy supply chains, there is an urgent need for greater standardization and regulatory alignment across regions.

The absence of national mandates for standardized digital procurement and invoicing systems exacerbates the issue, Fig. 1. Unlike the EU, where e-invoicing and digital procurement standards are enforced, North American energy companies are not bound by such regulations, meaning they are free to continue operating with outdated practices. This lack of uniformity presents a significant barrier to progress. Smaller suppliers, who may lack the resources to implement digital systems, are forced to operate within a patchwork of manual processes that are not only time-consuming but also prone to errors, leading to delays and additional costs.Ìý

FRAGMENTATION AND REGULATORY COMPLEXITYÌý

In regions where digital standards are emerging, the lack of consistency between local regulations remains a challenge. Even within the EU, where some level of digital integration is mandated, individual countries still have distinct requirements for invoicing, procurement, and payment processing. This creates an environment where energy suppliers must continuously adapt their systems to navigate diverse regulatory frameworks, leaving organizations to grapple with ongoing complexity.Ìý

While OpenPEPPOL has streamlined the process for digital invoicing across several European nations, many countries in regions outside the EU have introduced their own unique requirements. For example, countries such as Colombia (LATAM region) and Malaysia (APAC region) have introduced their own unique requirements, like the and models for electronic invoicing.ÌýÌý

This regional fragmentation creates significant inefficiencies, as energy companies are compelled to invest in costly technology solutions designed to meet each country's specific regulations. These solutions often lack seamless integration with existing systems, leading to further complexity. Consequently, companies operate in a fragmented, expensive digital landscape, where the advantages of eCommerce and digital procurement are not equally realized. Rather than benefiting from standardized, interoperable systems, companies are burdened with navigating a patchwork of regulations, which drives up costs and impedes overall supply chain efficiency.Ìý

While government-mandated initiatives like OpenPEPPOL, DIAN, and MyInvois are a step in the right direction for standardizing e-invoicing processes across industries, these initiatives rely on government mandates for adoption, rather than a proven industry efficiency for market adoption. In addition, they still fall short in providing the necessary levels of robust . As large volumes of sensitive data are exchanged between parties, these systems often fail to ensure the security and privacy needed to fully safeguard information in transit.Ìý

THE DIGITAL DIVIDE: EXCLUSION OF SMALLER SUPPLIERSÌý

The digital divide remains one of the most pressing challenges facing energy supply chains. While large energy companies can invest in the technology and infrastructure necessary to keep up with new digital requirements, smaller businesses, especially those in rural areas or emerging markets, face significant barriers. These suppliers often lack access to the broadband, digital banking, and financial technologies that enable seamless eCommerce transactions.Ìý

In many cases, rural suppliers still rely on traditional, offline methods—such as fax, phone calls, or even postal mail—because they lack the technology, the right digital tools, or internet connectivity to engage fully in digital supply chains. These gaps are not just technological but also financial; the costs associated with upgrading digital infrastructure are prohibitive for smaller businesses, which often struggle to keep up with the investment needed for compliance, much less digital transformation.Ìý

This lack of access to technology compounds existing inequities within energy supply chains. It not only limits the ability of smaller suppliers to tap into new digital markets but also undermines the broader goal of inclusive digital transformation. Without equal access to digital tools and platforms, smaller suppliers are excluded from the benefits of greater operational efficiency, reduced costs, and enhanced transparency that digital supply chains promise.Ìý

THE IMPACT ON PROCUREMENT AND SUPPLIER DIVERSITYÌý

The fragmentation of digital procurement systems and the digital exclusion of smaller suppliers have direct implications for procurement practices in the energy sector. Energy companies that operate in regions with a patchwork of regulatory requirements are forced to make decisions, based on the availability of suppliers who can meet digital standards. This can result in reduced supplier diversity, as smaller companies, unable to meet the technical or financial demands of digital procurement platforms, are left out of the supply chain entirely.Ìý

Moreover, the lack of standardized digital systems creates an environment where manual procurement processes dominate. This can lead to inefficiencies, delays, and increased operational costs, as well as challenges in tracking and verifying transactions. Energy companies may end up with a disjointed procurement system that lacks the real-time visibility, traceability, and automation that newer digital technologies provide. This not only makes it harder to manage complex supply chains but also puts energy companies at risk of non-compliance with .Ìý

THE MOVE TOWARD INCLUSIVE DIGITAL TRANSFORMATIONÌý

To unlock the full potential of digital technologies in energy supply chains, there is an urgent need for greater standardization and regulatory alignment across regions. The EU’s adoption of OpenPEPPOL and similar initiatives has demonstrated the power of a standardized, interoperable system for streamlining procurement and invoicing processes. Such systems help simplify transactions, improve transparency, reduce errors, and create more predictable business environments for all participants. However, regions like North America still face significant challenges. Without a national e-invoicing mandate, businesses must rely on inconsistent integration models and differing business processes, leading to inefficiencies, as companies often operate with slightly different systems for each customer, hindering overall progress.Ìý

Need for a structured North American approach. To drive widespread adoption of standardized digital processes, it is crucial for North America to follow a more structured approach—one that is often most successful when mandates are introduced. A national e-invoicing standard would not only enhance interoperability but also drive efficiency across industries like energy, banking and trade. When all companies adopt the same invoicing model, it can streamline cross-industry transactions, improve banking operations by automating payments and receipts, reduce fraud, and increase transparency in financial processes. This unified system would allow for faster payments, better tracking of financial transactions, and smoother interactions between businesses and government entities, thus fostering more trust and reducing the administrative burden.Ìý

Fig. 2. The Exchange Framework.

One globally recognized model that can help facilitate this transformation in North America is the (DBNAlliance), which offers a standardized e-invoicing platform designed for adoption across industries and regions. What sets DBNAlliance apart is that it was created, based on a cross-industry initiative rather than a governmental mandate. Furthermore, it has robust data protection and trade secret safeguards—features that align closely with the protections found in . While other models may not offer the same level of security, DBNAlliance provides a proven, interoperable solution that ensures sensitive data remain protected, as organizations worldwide adopt standardized systems for digital transformation, Fig. 2.Ìý

In addition to regulatory alignment, energy companies must also make concerted efforts to bridge the digital divide by investing in technology and infrastructure that support smaller and rural suppliers. This includes adopting standardized systems and operating models that ensure seamless integration across all levels of the supply chain, regardless of the supplier's size or location. However, in the absence of a national mandate, government subsidies and incentives can play a critical role in driving the adoption of these digital tools. By offering financial support, governments can lower the barriers for smaller suppliers, helping them invest in the necessary technology and infrastructure. Additionally, providing training programs will ensure that suppliers have the knowledge to navigate new systems effectively.Ìý

Supporting broader initiatives, such as expanding broadband access and internet connectivity, would further enable smaller suppliers—especially those in rural or underserved areas—to participate fully in the digital ecosystem. By creating a more inclusive digital landscape, government-driven incentives, alongside industry efforts, can ensure that the benefits of digital transformation are accessible to all suppliers, regardless of size or location.Ìý

Not all digital tools need to be complex or costly, especially for small-to-mid-sized organizations. For example, OFS Portal members and their customers have successfully adopted tools like our system. This cost-effective solution standardizes price books, automates workflows and approvals, and facilitates 2- and 3-way invoice matching—helping suppliers of all sizes streamline their operations, improve accuracy, and reduce overhead costs.Ìý

By creating a standardized, interoperable framework for e-invoicing and providing the necessary infrastructure and incentives for adoption, North America can unlock the full benefits of digital technologies, making supply chains more efficient, transparent, and inclusive for all players involved.Ìý

A FRAMEWORK FOR SUCCESSÌý

When organizations invest thoughtfully in their digital transformation —whether driven by government mandates or a desire to stay ahead of the digital curve—they can more quickly and efficiently integrate their systems with the broader supply chain. By implementing the right framework, companies establish a strong foundation for seamless interoperability, enabling more efficient collaboration with suppliers and stakeholders.ÌýÌý

This proactive approach not only streamlines the integration process but also enhances supply chain agility and efficiency, positioning organizations to stay ahead of regulatory changes and market demands. Moreover, a well-designed framework is built upon a that ensures robust data governance, security, and ownership, and is further strengthened by , providing an added layer of protection as the supply chain evolves.Ìý

BRINGING IT ALL TOGETHERÌý

The future resilience of energy supply chains depends on seamless end-to-end digital integration—spanning procurement, payments, logistics, and compliance management. Technologies like blockchain, AI, and cloud computing are transforming supply chains and providing real-time insights, but these benefits will only be fully realized, if all suppliers, regardless of size or location, can participate in the digital ecosystem.Ìý

To bring this vision to life, the energy sector must collaboratively address regional disparities in digital adoption by developing standardized, inclusive digital platforms that support both large corporations and smaller suppliers, while also embracing a consistent, standardized e-invoicing model to ensure seamless integration across the entire supply chain. By prioritizing collaboration, standardization, and inclusivity, the sector can —driving greater efficiency, transparency, and sustainability for all.Ìý

This transformation can be supported by creating an integrated, standardized digital framework and offering targeted government incentives alongside industry tools to help smaller suppliers overcome barriers to digital adoption. Financial support and training programs can enable these suppliers to invest in the necessary technology, ensuring they are not left behind in the digital shift. With these efforts, the energy industry can pave the way for a more resilient and efficient global supply chain, driving not only operational improvements but also long-term sustainability.Ìý

The future of energy supply chains lies in making digital transformation accessible to all—from large enterprises to small, rural suppliers. By fostering an inclusive, interoperable digitalÌý ecosystem, we can ensure that no one is excluded from the benefits of a more efficient, transparent, and sustainable supply chain.ÌýÌý

ABOUT OFS PORTALÌý

At OFS Portal, we are proud pioneers in revolutionizing B2B eCommerce integrations for Energy Industry suppliers and service providers. Founded by 12 leading oilfield service firms, including ABB, Baker Hughes, BJ Services (now BJ Energy Solutions), Cooper Cameron (now SLB), ENSCO (now Valaris), FMC (now TechnipFMC), Halliburton, National Oilwell (now NOV), Schlumberger (now SLB), Smith International (now SLB), Transocean Sedco Forex (now Transocean), and Weatherford, OFS Portal has been at the forefront of standardized electronic catalog and service agreement information since our inception.Ìý

As the trusted Energy Supply Chain Network (ESCN) for over two decades, we have facilitated seamless digital transactions globally, connecting multinational and regional leaders in the Energy sector. Our collaborative network ensures secure and efficient transactions, empowering supplier members to expand operations while maintaining data security, sovereignty, and compliance with industry regulations.Ìý

Today, our membership includes a diverse array of industry leaders, leveraging our robust framework to streamline operations and drive profitability. The current membership includes prominent companies such as Baker Hughes, Halliburton, Select Energy Services, and Wellbore Integrity Solutions. Moreover, the OFS Portal community and model have been embraced by over 620 operators, encompassing 18 out of the top 20 Fortune 250 companies, alongside 50 network providers.Ìý

For more information, please visit www.ofs-portal.com.Ìý

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MIMI STANSBURY is CEO and Chair of the Board of Managers of OFS Portal. After an esteemed career as a Certified Public Accountant (CPA) and Certified Financial Planner (CFP^®), Mimi joined OFS Portal as VP of Control and Administration in December 2015 where she was responsible for financial reporting, budgeting, and management of electronic data agreements.Ìý She was promoted to Senior VP of Finance and Administration in December 2018 with expanded roles and responsibilities including serving as treasurer and deputy COO of PIDX International.Ìý Mimi led the Interim Oversight Committee for the Exchange Framework Market Pilot, a project convened by the Business Payment Coalition (BPC) of the Federal Reserve Bank from November 2022 to April 2023, leading a team of global multi-company member representatives to develop policies, rules, and guidelines for the US Exchange Framework toward a successful launch of the Digital Business Networks Alliance (DBNAlliance).Ìý Mimi also currently serves as President and Chair of the Board of PIDX International, and a member of the Board of Directors of DBNAlliance. She was appointed as CEO at OFS Portal in March 2024.

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