Overcoming Challenges in Consumables Management and Procurement: A Case Study on Integrated Oilfield Completions

This company provides environmentally conscious US land completion services and power solutions that help to unlock sources of energy safely and affordably. They specialize in Hydraulic Fracturing, Wireline, Pumpdown, Coiled Tubing, Cementing, Rig Services, and Fluids Management.

To learn more about MSC’s BNA, our unbiased process, and data assessment of your indirect supply chain, designed to identify customized solutions to empower performance, generate savings and maximize profit potential, call us at 800.645.7270.

INACCESSIBILITY TO CONSUMABLES, STOCK-OUTS, FREIGHT ISSUES, ROGUE SPEND, OVERSTOCKING

Conducted an extensive operational site assessment through MSC’s Business Needs Analysis (BNA) to identify opportunities to solve customer’s consumables inventory management, procurement, and vendor service challenges.

Goals included:

• Increase accessibility and management of consumables (fasteners, fittings, fuses, etc.)

• Effective inventory control program

• Vendor consolidation and PO reduction

• Spend visibility

• Reduce costs and rogue spend

• Increase in vendor responsiveness

VENDING, VMI, IN-PLANT, CONSOLIDATE SUPPLIERS, HYDRAULICS PROGRAM

• Class C VMI to manage fasteners and consumables

• In-Plant, a customized and dedicated inventory management and procurement team

• Vending & Class C Bins

• Fluid connector specialist & Parker Hydraulics Program

• Automation driving inventory visibility, accuracy and reporting and streamlined order approval process through mscdirect.com

ESTIMATED COST SAVINGS OF $332,167 IN THE FIRST YEAR

• PO & Supplier Reduction = $187,500

• Increased Productivity (no employees offsite to replace stock-outs) = $12,000

• MSC solutions Investment = $132,667

Established a cadence of quarterly Customer Improvement Reviews (CIR) at which MSC and the customer collectively review a “scorecard” to evaluate progress on identified goals and look for improvement opportunities. We continue to work toward the future to fully integrate eProcurement and drive optimization through improved data visibility. In addition, we will provide on-site needs assessments and trainings from Safety and Fluid Connector specialist teams.