Integration Case Studies

Integration engagement focuses on an integrated relationship of procurement and supply chain functions yielding higher productivity, efficiencies, and reduction of costs attributed to inventory, facilities, labor, and indirect costs of operations.

Aerospace Manufacturer

A major manufacturer of aircraft components worked with DistributionNOW’s machine tools supply and manufacturing service group to implement point-of-use vending systems, leading to a 60% downsizing of the on-site tool crib. Inventories were reduced by 40% by repackaging in economic use quantities. Inventory accuracy and availability increased to 99.98%, reducing stock outs and spot buys. For manufacturing, productivity increased 30% through advanced cutter technology and machining methods, while improved cutting fluid technology increased tool life by 30%. Tool costs were reduced by 30% by implementing a proactive tool reconditioning and use process.

Oil and Gas Operator

For a major oil and gas operator running multiple production platforms offshore, DistributionNOW’s flexible supply chain model engages our customer in a variety of ways throughout their supply chain to provide a best-in-class integrated materials management program. The customer’s main facilities servicing all offshore production areas encompass a co-located DistributionNOW branch, equipped with DNOW-dedicated inventory and people to ensure efficient and productive support of key MRO products and uptime of the customer’s production assets. Our personnel also manage the customer’s owned inventory and peer supply inventory, while working in multiple inventory management systems performing goods receipts, issues, and replenishment orders.

When material is needed offshore, DNOW issues inventoried items, stages the material, and ships it to the appropriate shorebases, where our employees provide quality and documentation control, as well as shipment consolidation for offshore third-party transport. Our offshore employees managing the production platform stockrooms receive the material to inventory, issue inventory to appropriate work orders, and provide seamless automated inventory replenishment based on sound inventory management practices. State-of-the-art technology is used, from bar coding and RFID tags to inventory management systems running material requirements planning software to ensure a streamlined and efficient operation.