Optimizing Inventory for a Drilling Leader
ScottMadden frequently assists organizations with inventory management and optimization. Our SpareLogic and OptiStock solutions enable data-driven service level optimization and provide robust item-level insights to support smart stocking decisions. Contact us for a demo and to learn how we can help support your inventory management and planning goals.
Used advanced analytics to identify more than $20 million in inventory reduction opportunities while maintaining operational readiness
Flagged more than 2,000 potentially critical spare parts at risk of understock, enabling proactive mitigation planning
Equipped the inventory team with tools and training to sustain optimized stocking levels and improve decision-making
Challenge
A Canadian oil producer sought to reduce on-hand inventory while ensuring the availability of critical spare parts in the event of equipment failure at their site of operations. The existing inventory management approach lacked the granularity needed to balance cost reduction with operational risk, leading to concerns about both excess stock and insufficient spares for critical assets.
Process
- Engaged with subject matter experts across the organization to understand the existing inventory management processes and challenges
- Deployed ScottMadden’s SpareLogic solution to identify critical assets and their associated spare parts, using available client data
- Developed part-specific service level recommendations based on part usage, criticality, and substitution potential
- Applied ScottMadden’s OptiStock solution to define stocking criteria, including emergency levels, for each item in the inventory master
- Trained inventory management personnel on leveraging OptiStock for ongoing optimization
Result
- Identified more than $20 million in potential inventory reduction opportunities across the organization
- Flagged more than 2,000 potentially critical spare parts at risk of understock, helping to prevent operational downtime
- Delivered the analytical foundation for the company’s inventory optimization pilot within its drilling operations group
Related Insights
Optimized Inventory Management with OptiStock
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Critical Spare Part Classification
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Projected Inventory Storage Needs with PreciseSpace Forecaster
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With PreciseSpace Forecaster, step into a future where your storage space is strategically utilized and treated as an asset, driving efficiency and cost savings across your operations.
Let’s Work Together
We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.