Piping Rack Revamp Yields 134% Savings
Challenge
An oil and gas refinery had piping racks that were disorganized, frequently out of stock, and priced at a premium. The customer lacked time to manage their supplier, leading to continued inefficiencies.
Solution
As part of Martin’s Integrated Supply Solution, ongoing analysis of MRO spend revealed the root of the problem: a bolt supplier was managing the piping, resulting in poor service and high costs. Martin stepped in, replacing the supplier, cleaning and reorganizing the racks, and creating a plan to improve availability while lowering costs.
Results
After implementation, the racks were neatly labeled for easy access, and weekly inventory checks drastically reduced stockouts. With a more efficient supplier, Martin achieved a 134% cost savings per order, totaling $20,590 in savings in the first year.
Key Takeaways
Substantial Cost Savings: Martin’s Integrated Supply Solution resulted in a 134% cost savings per order for the refinery, amounting to $20,590 in the first year.
Enhanced Inventory Organization: By reorganizing and labeling piping racks, Martin improved accessibility, allowing for easier, faster retrieval of items and reducing inefficiencies.
Improved Stock Availability: Weekly inventory checks minimized stockouts, ensuring a steady supply and reducing downtime, highlighting the value of proactive supply management.