New Commodity, More Savings - Coil Tubing

In 2008, Alpine started managing Casing, Tubing and Line Pipe as this is what we knew we could realize immediate cost savings and inventory efficiencies. Since 2008, we have added a variety of products and services including the latest Coiled Tubing that has resulted in more than $100k in savings for our client.

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One of the goals with managing Coiled Tubing was to create inventory visibility to increase product utilization. Before the project started, the material was being tracked separately b a few key stakeholders in different business units. Increasing stock quantities resulted from incomplete and partial material listings, listings containing scrap material, and material management spread thinly across multiple groups and yards. To improve visibility of material across all business units, inventory was consolidated on a single master list, and monitored on a scheduled basis. Inventory was classified by condition, location, and scrap material was eliminated. Storage facilities were reduced from five to two yards. This project identified $4.2 million in product value. Cost avoidance through reutilization in Q3 2020 exceeded $97,000 and cost recoveries from disposal generated an additional $17,000. System improvements through collaboration with vendors added new labeling systems and also increased the physical tracking capabilities with vendors. New disposal processes were developed to deal with scrap material to eliminate unnecessary storage and immediately recover salvage values.