Client is one of the largest oil field services companies in North America and has grown significantly due to the rapid growth of hydraulic fracturing. Their logistics function has expanded dramatically and lacked use of standard processes and technology. The client had been able to achieve a high level of customer service through the use of “brute force”, but needed to cut costs dramatically to remain cost competitive.
Services Provided
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Mapped the order fulfillment process with focus on these key processes:
- Supply/demand planning
- Order execution
- internally and externally
- Materials logistics via rail and truck
- Analyzed costs compared to industry best practice
- Reviewed organization structure compared to best practice
- Reviewed and strategically recommended technology utilization
- Determined ideal Key Process Indicators (KPI)
Results
- Improvement recommendations for S&OP, procurement and logistics processes as a result of process mapping
- Highlighted highly uncompetitive internal function with potential for outsourcing with large cost savings potential
- Recommended modifications to organizational structure, technology platforms and KPI’s to improve efficiency and lower costs
