Whether you’re a shrimp importer tracking the temperature of shipped shrimp, a nonprofit using state or federal grant funds or a healthcare professional protecting patients, it’s likely you are required to meet compliancy regulations. This, in turn, necessitates a robust compliance management plan.
It’s not enough to track compliance, you also have to be able to collect, secure and report information to regulatory entities. Tracking compliancy is particularly difficult and would be almost impossible without technology as a key tool in successfully meeting regulations.
Regardless of the industry you’re in, most businesses have regulations and requirements they have to abide by, making compliance an essential part of being successful.
The cost of maintaining compliance
The cost of regulatory compliance averages $12,000 a year for most small businesses, says the National Small Business Association. For new businesses, direct and indirect costs to stay compliant in the first year top $80,000.
The sustained low prices of oil may be great for consumers, but they are taking their toll on North American oil companies. The oil market has been contracting for several months, and companies are either tightening their belts or closing their doors. Gone are the days where your high-cost projects would be offset by the favorable barrel prices. According to a report from Goldman Sachs, businesses will need to cut their costs by up to 30% to maintain a profit on their high-cost ventures, with oil prices now at a sustained $70 per barrel12—and prices are expected to dip down to an average of $40 for the year.3
More than 250,000,000 barrels of oil are produced domestically every month. Stop and consider that. Two hundred and fifty million barrels each and every month, right here in the United States. That’s an extraordinary amount of anything, much less a 42-gallon barrel full of a valuable and much-in-demand resource. Of course, all of that oil doesn’t immediately turn into finished goods. Different refinements and processes must take place to produce things like gasoline and plastic. That means that along the way much of this oil must be stored, sometimes in barrels but just as often in tanks and tankers all across the country and around the world. When every drop is real money, accounting for all of it is of vital importance not just to the companies that sell this commodity, but also to our society that relies on oil for so many of the things we utilize in our daily lives.
There’s a chance that at the start of your career you were working with handheld gauges and measuring sticks. Recordings would be entered by hand into a database on site and then called in to headquarters. Few industries move as fast as oil, though, and those days seem long past. Inefficiencies have been largely wiped out, thanks in large part to the cloud.