Professional Documents
Culture Documents
Before State
Minimal confidence in inventory data (descriptions, condition, even ownership) No storage/maintenance procedures Massive audit exceptions dating back to 1990 Minimal internal utilization Few dispositions No formal junk program Well returns collected Physical inventories performed every two years Duplication of data entry (SAP, Cards) Extended period well charges Inaccurate transfer pricing ( p g (58% error rate) ) And one lonely person that really wanted a career change
Plan
Get executive management engagement
Carrying costs, cash flow and CAPEX
Get the people and training Prioritize the problems and dont get distracted!
Warehouse consolidation and clean-up Emphasize internal utilization Improve front end processes
Results
Warehouse clean-up completed $35MM of internal utilization in first year Audit backlog eliminated 60 day response to new Monthly desk audits on all warehouses Risked based physical inventory approach Reconciliation includes yard records National junk program established Well return programs set up with suppliers Continuous disposition efforts Extended well charges practically eliminated Transfer pricing shifted to Accounting p g g SAP front end built Tackling non-controllables
Inventory Management
Cost Avoidance
Kendall Morvant, Willi K d ll M Williams G Pi li Gas Pipeline
Process Summary y
Oracle Requisition from Engineering Powerplant Surplus List from Construction Screened by Investment Recovery S db I t tR Sourced from Surplus List vs. New $$ Redirect using Internal Material Transfer Avoid Oracle External Purchase Order Material still tracked for reconciliation
Network International A Liquidity Services Marketplace
Inventory Management
Inventory Key Aspects to Investment Recovery
Caleb Bloyd, ConocoPhillips Investment Recovery Analyst Sofyan Lubis, ConocoPhillips Inventory Lead
Common Opportunities
Key Aspects Housekeeping Common Opportunities Housekeeping Program Material Preservation Program Core Preservation for repairable item(s) Review and Approval Equipment maintenance and configuration Initial stock at minimal level Access material identification from retired equipment More accurate stocking levels Leads to Standardization of Processes Better utilization of Material Master Numbers Stock Set Up
Optimization
Right size orders Enough size for low value item order Low Max/Min Ratio for expensive item Urgent Request PO Cross Reference to Surplus Materials Transfer oppo u es a s e opportunities
Decide on an inventory software program A you going t use your companys or th i ? Are i to theirs? Does either company even have a good tracking
software? ft ?
Do we need it??
Determine TRUE conditions not what its on the
books for
Do you have a field that has a need for this anymore? I it current technology, or better off in a museum? Is tt h l b tt ff i ? Let other fields know your plans either speak up or
forever hold your piece f h ld i
CONTACT
NETWORK INTERNATIONAL!! O O
Network International 16 A Liquidity Services Marketplace
Do we need it??
Everyone likes the comfort of having spare parts and
inventory at their disposal (Honey Holes) ( Honey Holes )