Project showcase

Warehouse and Inventory Management Optimization

Project goal

To assure complete accuracy of the inventory data within the CMMS

Client:

Oil and Gas exploration and production company

Asset:

Onshore and Offshore Storage Warehouse Facilities

Duration:

2 years

Location:

North America

Why we were contracted

Our team members were tasked with:

  • Verifying equipment existence and cleansing the inventory data in the clients CMMS (SAP)
  • Enriching existing inventory data to assure all critical information was available for effective part ordering and management
  • Updating the system with materials that were in the warehouse but not documented in the CMMS
  • Designing and implementing a new process for maintaining master data excellence to avoid future issues

The client challenges

Add Energy were tasked with delivering solutions designed to address the challenges listed below:

  • Overstocking of items caused by data duplications
  • Excessive warehouse and procurement costs
  • No means of tracking or identifying correct locations of materials
  • Inaccurate inventory list
  • Missing data points, meaning it was difficult to interpret whether the equipment that was being searched for was correct
  • Items expiring before use
  • Wasted money expediting orders of items that was believed to be in stock
  • Wasted valuable engineering time searching for items due to lack of accurate data
  • Lack of management of change, meaning the master data was extremely outdated
  • No foresight on what materials were required for maintenance

How we helped

Ahead of the implementation of improvements, Add Energy completed an initial warehouse and inventory audit to determine the causes of the issues they were facing, and developed improvement plans designed to unlock the biggest return on investment for the client.

After this, Add Energy:

  • Completed a full warehouse walk down to verify and collect data on the materials in stock in the onshore and offshore warehouse facilities, where we…
    • Updated the inventory data in SAP
    • Identified materials that were unsuitable for use and removed from SAP
  • Unlocked functionality to set min/max levels
  • Mastered the material numbers to mitigate against duplication
  • Designed a management of change process for updating materials data and sustaining master data excellence
  • Provided training and coaching to the warehouse, procurement, engineering, maintenance, and operations teams who interact with the materials data and will be directly impacted by the change and requirements going forward
  • Provided advice and guidance for selection of an optimized warehouse management team

The value we delivered

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An accurate and enriched inventory database

Through the updating of the inventory data in SAP, we assured the system reflected the reality of the contents within the physical warehouses, including locations, quantities, and item specifications

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Optimized stock holding

Through clarity on inventory quantities and the ability to set and adjust min/max stock levels when materials were purchased or used, to avoid over or understocking of critical, long lead and high consumption items

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Minimized downtime

Having an accurate inventory database provides the means to avoid delays in planned and corrective maintenance to reduce outage time and possible plant downtime

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Reduce costs

Accurate data will reduce the likelihood of having pay inflated expedited fees for manufacturers and vendors to accelerate orders associated with last minute requests for materials

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Ensured stock was fit for purpose

Through cleansing of items that required disposal to assure the warehouse contained only items that were fit for use

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Sustained master data excellence

Developed a tried and tested process for management of change and implemented this across the organization through ongoing engagement, workshops, and training

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Boosted productivity

By having access to accurate and reliable inventory data, the workforce was able to avoid wasting valuable time searching for the right parts and optimize their planning and scheduling of maintenance

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Enhanced competency and capability

Through the implementation of a best-in-class process and the deployment of a newly formed warehouse management team to sustain the work completed by Add Energy, post project delivery

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“If we got a problem, ask those Add Energy boys!”

Warehouse Manager, Oil and Gas operator - Gulf of Mexico

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