A global corporation, manufacturing equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration to the upstream oil and gas industry.
The customer sought ways to manage their MRO indirect spend so they could get better control of their procurement processes, control their inventory, clean up their data and have visibility and control of their indirect spend budget.
Implement our Automated Supply Program (ASP)—an advanced, indirect material supply chain software—and our proven processes to control their MRO indirect spend.
Reduced total cost of ownership by 24.2% in the first year post-integration.
The customer was challenged with finding a way to manage their MRO indirect spend so they could get better control of their procurement processes, control their inventory, clean up their data, as well as have visibility and control of their indirect spend budget.
After conducting an extensive search, they approached us to help create savings and efficiencies. Before our involvement, the customer had no integrated supplier presence. Our team implemented our Automated Supply Program (ASP)—an advanced, indirect material supply chain software—and our proven processes to solve the various challenges the customer faced.
All tooling requisitions were filtered through the customer’s buyers using paper forms, entered into the Enterprise Resource Planning (ERP) system by hand. The Buyer would have to route the forms physically to different managers for approval before placing the order. The process of obtaining approvals led to extended cycle times, sometimes taking several business days from form generation to order placement.
All tooling requisitions were filtered through the customer’s buyers using paper forms, entered into the Enterprise Resource Planning (ERP) system by hand. The Buyer would have to route the forms physically to different managers for approval before placing the order. The process of obtaining approvals led to extended cycle times, sometimes taking several business days from form generation to order placement.
With no integrated supplier, the accounting department had to reconcile hundreds of different supplier invoices manually each month.
ASP now sends their accounting department a weekly consolidated product invoice for all production and capital expenditures. We customized the system’s tracking fields to match their system fields back to the manufacturing production cell, cost center and job, significantly reducing invoice reconciliation times.
PRE-INTEGRATION 900 invoices/month at $35 per invoice $31,500 per month
POST-INTEGRATION 4 invoices/month at $100 per invoice $400 per month
The customer had dispensing machines from two different suppliers. Each one used a different software system and had no customer interface for tracking and reporting daily expenses. The data transfer incompatibility and lack of reporting prevented the customer from gaining insight into the machines’ usage and implementing procedures to support usage rates.
We installed our dispensing machines, all feeding into our ASP software. We set up automated daily transaction reports for production managers to see daily spending details for individual production work cells. The daily usage reports and open order reports are sent automatically to the customer’s accounting team to help manage current budget states and make informed decisions for spending forecasts.
ASP also sends reports to Ferguson Industrial for review—enabling our associates to make recommendations for usage control that will improve the customer’s spend.
Multiple buyers were involved in sourcing cell production purchases and spot-buying spare parts for maintenance.
Our new systems and processes consolidated procurement into a process easily managed by one buyer. This provides more efficiency, reduced cycle time and better inventory management, all of which contribute to a lower total cost of ownership.
Our quality program is the greatest value we provide our customers as a trusted supplier. We are dedicated to the safe operation of the industries we serve, knowing that the products we supply are critical to the safe operation of their facilities.
